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42.21.123    FARM MACHINERY AND EQUIPMENT

(1) The department applies the valuation methods in sequential order as shown in (2) through (8).

(2) The market value for farm machinery and equipment shall be the "average wholesale" value as shown in the online version of the guide known as Equipment Watch, as of October of the year prior to the year of assessment. This online guide is incorporated by reference and may be reviewed in the department or purchased from the publisher: Dataquest, 1290 Ridder Park Drive, San Jose, California 95131.

(3) For all farm machinery and equipment that cannot be valued under (2), the department has developed a manual to value the equipment. This manual will be used in conjunction with the depreciation schedule in (5) when valuing farm equipment and machinery. The purpose of the manual developed by the department is to arrive at values which approximate average wholesale value. The department's farm machinery manual is incorporated by reference. Customers can contact the department to obtain copies.

(4) For all farm machinery and equipment which cannot be valued under (2) and (3):

(a) the department shall try to ascertain the original FOB (free on board value) through old farm machinery and equipment valuation guidebooks; and

(b) if an original FOB cannot be ascertained, the department may use trending to determine the FOB.

(5) The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (8) to arrive at a value that approximates average wholesale value.

(6) A trended average wholesale value shall be applied to equipment if:

(a) the equipment cannot be valued under (2) but an average wholesale value is available for the same make and model with a different year new; and

(b) the equipment cannot be valued under (4) or the value as calculated under (4) results in a higher value being placed on a piece of farm equipment than the last year listed in the guide cited in (2) for the same make and model. The trended average wholesale value for farm equipment shall be ascertained by trending the average wholesale value as found in the guide in (2), for the same make and model with a different year new. The trend factors are the same as those mentioned in (4).

(7) If the methods mentioned in (2) through (5) cannot be used to ascertain average wholesale value for farm machinery and equipment, the owner or applicant must certify to the department the year acquired and the acquired price before that value can be applied to the schedule in (8).

(8) The trended depreciation schedule referred to in (2) through (6) is listed below and shall be used for tax year 2018. The schedule is derived by using the guide listed in (2) as the data base. The values derived through use of the trended depreciation schedule will approximate average wholesale value.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD
WHOLESALE

2018

80%

2017

50%

2016

48%

2015

45%

2014

45%

2013

43%

2012

40%

2011

40%

2010

40%

2009

39%

2008

38%

2007

38%

2006

37%

2005

36%

2004

36%

2003

34%

2002 and older

31%

 

(9) If a piece of farm machinery or equipment's market value is below $100, it is exempt from taxation.

(10) This rule is effective for tax years beginning after December 31, 2017.

 

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-202, 15-6-207, 15-6-219, 15-8-111, MCA; Eff. 12/31/72; AMD, Eff. 1/5/74; AMD, Eff. 5/6/76; AMD, 1979 MAR p. 995, Eff. 8/31/79; AMD, 1979 MAR p. 1304, Eff. 10/26/79; AMD, 1981 MAR p. 93, Eff. 1/30/81; AMD, 1982 MAR p. 102, Eff. 1/29/82; AMD, 1982 MAR p. 2153, Eff. 12/17/82; AMD, 1983 MAR p. 1266, Eff. 9/16/83; AMD, 1984 MAR p. 2036, Eff. 12/28/84; AMD, 1985 MAR p. 2032, Eff. 1/1/86; AMD, 1986 MAR p. 2068, Eff. 12/27/86; AMD, 1988 MAR p. 747, Eff. 4/15/88; AMD, 1989 MAR p. 613, Eff. 5/12/89; AMD, 1991 MAR p. 915, Eff. 6/14/91; AMD, 1991 MAR p. 2043, Eff. 11/1/91; AMD, 1992 MAR p. 2394, Eff. 10/30/92; AMD, 1993 MAR p. 2972, Eff. 12/10/93; AMD, 1994 MAR p. 3195, Eff. 12/23/94; AMD, 1996 MAR p. 1174, Eff. 4/26/96; AMD, 1996 MAR p. 3151, Eff. 12/6/96; AMD, 1997 MAR p. 2297, Eff. 12/16/97; AMD, 1998 MAR p. 3316, Eff. 12/18/98; AMD, 1999 MAR p. 2909, Eff. 12/17/99; AMD, 2000 MAR p. 3563, Eff. 12/22/00; AMD, 2001 MAR p. 2249, Eff. 11/9/01; AMD, 2002 MAR p. 3728, Eff. 12/27/02; AMD, 2003 MAR p. 2901, Eff. 12/25/03; AMD, 2004 MAR p. 2603, Eff. 10/22/04; AMD, 2005 MAR p. 2262, Eff. 11/11/05; AMD, 2006 MAR p. 2979, Eff. 12/8/06; AMD, 2007 MAR p. 1826, Eff. 11/9/07; AMD, 2008 MAR p. 2561, Eff. 11/27/08; AMD, 2009 MAR p. 2497, Eff. 12/25/09; AMD, 2010 MAR p. 3022, Eff. 12/24/10; AMD, 2012 MAR p. 409, Eff. 2/24/12; AMD, 2012 MAR p. 2496, Eff. 12/7/12; AMD, 2013 MAR p. 2316, Eff. 12/13/13; AMD, 2014 MAR p. 2991, Eff. 12/12/14; AMD, 2015 MAR p. 2364, Eff. 12/25/15; AMD, 2016 MAR p. 2340, Eff. 1/1/17; AMD, 2017 MAR p. 2341, Eff. 1/1/18.

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