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Montana Administrative Register Notice 42-2-923 No. 20   10/23/2014    
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BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.21.113, 42.21.123, 42.21.124, 42.21.131, 42.21.137, 42.21.138, 42.21.139, 42.21.140, 42.21.151, 42.21.153, 42.21.155, 42.21.165, and 42.22.1311 pertaining to the trended depreciation schedules for valuing property

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

1. On November 12, 2014, at 9 a.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed amendment of the above-stated rules. The conference room is most readily accessed by entering through the east doors of the building.

 

2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, please advise the department of the nature of the accommodation needed, no later than 5 p.m. on November 3, 2014. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov.

 

3. GENERAL STATEMENT OF REASONABLE NECESSITY.  The department uses data from the guides and valuation manuals listed in its rules to determine the trended depreciation schedules published in those rules.  Personal property is valued annually and because the trend tables used to value personal property change from year to year, the department must provide taxpayers with notice of those changes and does so through the rulemaking process.  The annual update to the trended depreciation schedules provides taxpayers with the current depreciation percentage for each of the personal property classifications for the upcoming year.  The updates also clearly identify for the taxpayer how the department values and depreciates property over time.

The department has considered the small business impact study requirements of 2-4-111, MCA, and determined the proposed amendments to the rules in this notice will not significantly and directly impact small businesses. ARM 42.21.157 requires the department to update the depreciation schedules of tangible personal property on an annual basis. The annual changes to ARM 42.21.113, 42.21.123, 42.21.131, 42.21.137, 42.21.138, 42.21.139, 42.21.140, 42.21.155, and 42.21.1311, affect all businesses with tangible personal property.  By annually updating the depreciation schedules, the department accounts for the impact an additional year of wear and tear has on the value of tangible personal property.  Small businesses would see a negative impact if these tables were not updated.

It is reasonably necessary to update the trend tables to reflect any changes for the upcoming year.  This general statement of reasonable necessity applies to all of the following proposed amendments, and has been supplemented as appropriate for any additional proposed rule change.

 

4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

 

42.21.113 LEASED AND RENTAL EQUIPMENT  (1) Leased or rental equipment that is leased or rented on an hourly, daily, weekly, semimonthly, or monthly basis, but is not exempt under 15-6-202 or 15-6-219, MCA, will be valued in the following manner:

(a) For equipment that has an acquired cost of $0 to $500, the department shall use a four-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 1.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2013 2014

70%

2012 2013

43 44%

2011 2012

18 19%

2010 2011 and older

8 9%

 

(b) For equipment that has an acquired cost of $501 to $1,500, the department shall use a five-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 2.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2013 2014

85%

2012 2013

66 69%

2011 2012

51 50%

2010 2011

33%

2009 2010 and older

22%

 

(c) For equipment that has an acquired cost of $1,501 to $5,000, the department shall use a ten-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 8.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2013 2014

92%

2012 2013

84 85%

2011 2012

78 77%

2010 2011

70%

2009 2010

61%

2008 2009

55 52%

2007 2008

44%

2006 2007

35%

2005 2006

29 28%

2004 2005 and older

26%

 

(d) For equipment that has an acquired cost of $5,001 to $15,000, the department shall use the trended depreciation schedule for heavy equipment. The schedule will be the same as ARM 42.21.131.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2014 2015

80%

2013 2014

65%

2012 2013

57 62%

2011 2012

57 58%

2010 2011

54 52%

2009 2010

48 49%

2008 2009

43%

2007 2008

40%

2006 2007

36 37%

2005 2006

32 34%

2004 2005

30 33%

2003 2004

23 32%

2002 2003

22 29%

2001 2002

23 27%

2000 2001

24 25%

1999 2000

19 23%

1998 1999

21 22%

1997 1998

20 21%

1996 1997

20 21%

1995 1996 and older

15 19%

 

(e) For rental video tapes and digital video disks, the following trended depreciation schedule will be used:

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2013 2014

25%

2012 2013

15%

2011 2012 and older

10%

 

(2) through (4) remain the same.

(5) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, 15-23-108, MCA

IMP15-6-135, 15-6-138, 15-6-202, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.113 to strike an incorrect implementing statute.

42.21.123 FARM MACHINERY AND EQUIPMENT (1) through (7) remain the same.

(8) The trended depreciation schedule referred to in (2) through (6) is listed below and shall be used for tax year 2014 2015. The schedule is derived by using the guidebook 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
AVERAGE WHOLESALE

2014 2015

80%

2013 2014

75%

2012 2013

66%

2011 2012

64 61%

2010 2011

61 58%

2009 2010

54 55%

2008 2009

53 48%

2007 2008

51 48%

2006 2007

48 47%

2005 2006

44%

2004 2005

43 41%

2003 2004

38 39%

2002 2003

33 35%

2001 2002

31%

2000 2001

29 28%

1999 2000

27%

1998 1999 and older

22 21%

 

(9) remains the same.

(10) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

42.21.124 PER CAPITA LIVESTOCK TAX REPORTING PROCEDURE

(1) For purposes of assessing the per capita tax fees on livestock, poultry, and bees to pay the expense of enforcing the livestock, poultry, and bee laws, the following categories of livestock, poultry, and bees shall be used by the producer to report the number of animals within each category. The established categories are:

(a) through (j) remain the same.

(2) This rule is effective for tax years beginning after December 31, 1997 2014.

 

AUTH15-1-201, MCA

IMP15-6-207, 15-24-921, 15-24-922, 15-24-925, MCA

 

REASONABLE NECESSITY: The department proposes amending ARM 42.21.124 to correctly identify the per capita fee as a fee, rather than a tax, and to update the year referenced in (2).

 

42.21.131 HEAVY EQUIPMENT (1) through (4) remain the same.

(5) The trended depreciation schedule referred to in (2), (3), and (4) is listed below and shall be used for tax year 2014 2015. The values derived through the use of these percentages approximate the "quick sale" values as calculated in the guidebooks listed in (1).

 

HEAVY EQUIPMENT TRENDED DEPRECIATION SCHEDULE

 

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

WHOLESALE

2014 2015

80%

2013 2014

65%

2012 2013

57 62%

2011 2012

57 58%

2010 2011

54 52%

2009 2010

48 49%

2008 2009

43%

2007 2008

40%

2006 2007

36 37%

2005 2006

32 34%

2004 2005

30 33%

2003 2004

23 32%

2002 2003

22 29%

2001 2002

23 27%

2000 2001

24 25%

1999 2000

19 23%

1998 1999

21 22%

1997 1998

20 21%

1996 1997

20 21%

1995 1996 and older

15 19%

 

 

(6) This rule is effective for tax years beginning after December 31, 2013 2014, and applies to all heavy equipment. 

 

AUTH15-1-201, 15-23-108, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.131 to remove an unnecessary table header and to strike an incorrect implementing statute.

 

42.21.137 SEISMOGRAPH UNITS AND ALLIED EQUIPMENT

(1) through (3) remain the same.

(4) The trended depreciation schedules referred to in (1) through (3) are listed below and shall be used for tax year 2014 2015.

 

SEISMOGRAPH UNIT

YEAR NEW/ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

WHOLESALE FACTOR

WHOLESALE % GOOD

2014 2015

100%

1.000

100%

80%

80%

2013 2014

85%

1.000

85%

80%

68%

2012 2013

69%

1.000 9

69 70%

80%

55 56%

2011 2012

52%

1.02710

53%

80%

43 42%

2010 2011

34%

1.05538

36 35%

80%

29 28%

2009 2010

23%

1.04066

24 25%

80%

19 20%

2008 2009-2006

18%

1.07751

19%

80%

16 15%

2005 and older

5%

 

 

 

5%

 

SEISMOGRAPH ALLIED EQUIPMENT

YEAR NEW/
ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

2014 2015

100%

1.000

100%

2013 2014

85%

1.000

85%

2012 2013

69%

1.000 1.009

69 70%

2011 2012

52%

1.027 1.010

53%

2010 2011

34%

1.055 1.038

36 35%

2009 2010

23%

1.040 1.066

24 25%

2008 2009-2006

18%

1.077 1.051

19%

2005 and older

5%

 

5%

 

 (5) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH: 15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.137 to strike an incorrect implementing statute.

 

42.21.138 OIL AND GAS FIELD MACHINERY AND EQUIPMENT 

(1) and (2) remain the same.

(3) The trended depreciation schedule referred to in (1) and (2) is listed below and shall be used for tax year 2014 2015.

 

OIL AND GAS FIELD PRODUCTION

EQUIPMENT TRENDED DEPRECIATION SCHEDULE

 

YEAR NEW/ ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

2014 2015

100%

1.000

100%

2013 2014

95%

1.000

95%

2012 2013

90%

1.000 1.009

90 91%

2011 2012

85%

1.027 1.010

87 86%

2010 2011

79%

1.055 1.038

83 82%

2009 2010

73%

1.040 1.066

76 78%

2008 2009

68%

1.077 1.051

73 71%

2007 2008

62%

1.125 1.088

70 67%

2006 2007

55%

1.192 1.137

66 63%

2005 2006

49%

1.252 1.204

61 59%

2004 2005

43%

1.358 1.265

58 54%

2003 2004

37%

1.406 1.372

52 51%

2002 2003

31%

1.434 1.420

44%

2001 2002

26%

1.442 1.449

37 38%

2000 2001

23%

1.456 1.457

33 34%

1999 2000 and older

21%

1.479 1.471

30 31%

 

(4) remains the same.

(5) Downhole equipment which is not in an oil or gas well as of the assessment date, January 1, each year shall be taxed as class eight property.

(6) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-213, 15-6-219, MCA

 

REASONABLE NECESSITYThe department proposes further amending ARM 42.21.138 to clearly set forth the assessment date for determining the taxable or exempt status of downhole equipment, and to remove an unnecessary table header.

 

42.21.139 WORK-OVER AND SERVICE RIGS (1) through (4) remain the same.

(5) The trended depreciation schedule referred to in (2) and (4) is listed below and shall be used for tax year 2014 2015.

 

SERVICE AND WORKOVER RIG TRENDED DEPRECIATION SCHEDULE

 

YEAR/NEW ACQUIRED

% GOOD

TREND FACTOR

WHOLESALE FACTOR

TRENDED WHOLESALE % GOOD

2014 2015

100%

1.000

80%

80%

2013 2014

92%

1.000

80%

74%

2012 2013

84%

1.000 1.009

80%

67 68%

2011 2012

76%

1.027 1.010

80%

62 61%

2010 2011

67%

1.055 1.038

80%

57 56%

2009 2010

58%

1.040 1.066

80%

48 49%

2008 2009

49%

1.077 1.051

80%

42 41%

2007 2008

39%

1.125 1.088

80%

35 34%

2006 2007

30%

1.192 1.137

80%

29 27%

2005 2006

24%

1.252 1.204

80%

24 23%

2004 2005 and older

21%

1.358 1.265

80%

22 21%

 

(6) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.139 to remove an unnecessary table header.

 

42.21.140 OIL DRILLING RIGS (1) remains the same.

(2) The department shall prepare a ten-year trended depreciation schedule for oil drilling rigs. The trended depreciation schedule shall be derived from depreciation factors published in the Marshall & Swift Valuation Service Guide. The "% good" for all drill rigs less than one year old shall be 100 percent. The trended depreciation schedule for tax year 2014 2015 is listed below.

 

DRILL RIG TRENDED DEPRECIATION SCHEDULE

 

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2014 2015

100%

1.000

100%

2013 2014

92%

1.000

92%

2012 2013

84%

1.000 1.009

84 85%

2011 2012

76%

1.027 1.010

78 77%

2010 2011

67%

1.055 1.038

71 70%

2009 2010

58%

1.040 1.066

60 62%

2008 2009

49%

1.077 1.051

53 51%

2007 2008

39%

1.125 1.088

44 42%

2006 2007

30%

1.192 1.137

36 34%

2005 2006

24%

1.252 1.204

30 29%

2004 2005 and older

21%

1.358 1.265

28 27%

(3) remains the same.

(4) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.140 to remove an unnecessary table header and to strike an incorrect implementing statute.

 

42.21.151 LOCALLY ASSESSED CABLE TELEVISION CABLE SYSTEMS

(1) The average market value for television cable systems is $2,000 per mile of coaxial cable (transmission line) and $25 per service drop of central office or headend type equipment will be determined by using a ten-year trended depreciation schedule. 

(2) The market value of transmission and distribution type assets will be determined by using a twenty-year trended depreciation schedule. 

(3) The percent good will be derived from the Marshall & Swift Valuation Service Guide furniture and fixtures depreciation tables, as published by the Marshall and Swift Publication Company, 915 Wilshire Boulevard, 8th Floor, P.O. Box 26307, Los Angeles, California 90026-0307.

(4) The trend factors shall be calculated using the most recent available "Producer Price Index for Commodities," Series Id WPU1178, "Electronic Components and Accessories," published by the United States Department of Labor, Bureau of Labor Statistics.

(2)(5) The average market value for of the dishes and towers will be determined by using a five-year trended depreciation schedule on for dishes and ten-year trended depreciation schedule on for towers. Both the trend factors and the depreciation tables will be derived from the Marshall & Swift Valuation Service Guide, as published by the Marshall and Swift Publication Company, 915 Wilshire Boulevard, 8th Floor, P.O. Box 26307, Los Angeles, California 90026-0307. The trend factors shall be the most recent available from the "Average of all Indexes" listed in the above publication.

(3)(6) The trended depreciation schedules will be applied to the acquired cost including installation and year acquired of the dish or tower equipment.

(4)(7) The trended depreciation schedules referred to in (1), (2), and (3)(5) are listed below and shall be in effect for tax year 2014 2015.

 

TEN-YEAR "HEADEND EQUIPMENT"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2014

92%

1.000

92%

2013

84%

0.999

84%

2012

76%

0.983

75%

2011

67%

0.955

64%

2010

58%

0.921

53%

2009

49%

0.905

44%

2008

39%

0.874

34%

2007

30%

0.790

24%

2006

24%

0.793

19%

2005 and older

21%

0.783

16%

 

 

TWENTY-YEAR "TRANSMISSION & DISTRIBUTION ASSETS"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2014

97%

1.000

97%

2013

93%

0.999

93%

2012

90%

0.983

89%

2011

86%

0.955

82%

2010

82%

0.921

76%

2009

78%

0.905

71%

2008

74%

0.874

65%

2007

70%

0.790

55%

2006

65%

0.793

52%

2005

60%

0.783

47%

2004

55%

0.767

42%

2003

50%

0.751

38%

2002

45%

0.742

33%

2001

40%

0.717

29%

2000

35%

0.706

25%

1999

31%

0.696

22%

1998

27%

0.678

18%

1997

24%

0.646

16%

1996

22%

0.617

14%

1995 and older

21%

0.598

13%

 

 

TABLE 1: FIVE-YEAR "DISHES"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

1.007 1.010

69 70%

2011 2012

52%

1.036 1.018

54 53%

2010 2011

34%

1.068 1.047

36%

2009 2010 and older

21 23%

1.060 1.080

22 25%

 

TABLE 2: TEN-YEAR "TOWERS"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2013 2014

92%

1.000

92%

2012 2013

84%

1.007 1.010

85%

2011 2012

76%

1.036 1.018

79 77%

2010 2011

67%

1.068 1.047

72 70%

2009 2010

58%

1.060 1.080

61 63%

2008 2009

49%

1.091 1.072

53%

2007 2008

39%

1.134 1.103

44 43%

2006 2007

30%

1.196 1.146

36 34%

2005 2006

24%

1.251 1.209

30 29%

2004 2005 and older

21%

1.345 1.265

28 27%

 

(5)(8) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY:   The department proposes further amending ARM 42.21.151 to provide trended depreciation tables and the valuation method for certain cable television equipment to more accurately reflect current market value. Furthermore, the department proposes removing unnecessary table headers, striking an incorrect implementing statute, and changing the rule title to better reflect the rule content.

 

42.21.153 SKI LIFT EQUIPMENT (1) and (2) remain the same.

(3) The depreciation schedules shall be determined by the life expectancy of the equipment and will normally compensate for the loss in value due to ordinary wear and tear, offset by reasonable maintenance, and ordinary functional obsolescence due to the technological changes during the life expectancy period.

 

DEPRECIATION TABLE FOR SKI LIFT EQUIPMENT

 

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2013 2014

92%

1.000

92%

2012 2013

84%

1.007 1.010

85%

2011 2012

76%

1.036 1.018

79 77%

2010 2011

67%

1.068 1.047

72 70%

2009 2010

58%

1.060 1.080

61 63%

2008 2009

49%

1.091 1.072

53%

2007 2008

39%

1.134 1.103

44 43%

2006 2007

30%

1.196 1.146

36 34%

2005 2006

24%

1.251 1.209

30 29%

2004 2005 and older

21%

1.345 1.265

28 27%

 

(a) The taxpayer must initially list with the department:

(i) all equipment by year of installation; and

(ii) installed costs of that equipment.

(b) Each year thereafter, the taxpayer must list with the department:

(i) all additions or deletions from the previous year's list, with installed cost.

(4) This methodology is effective for tax years beginning after December 31, 2013 2014

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes further amending ARM 42.21.153 to remove an unnecessary table header and to strike an incorrect implementing statute.

 

42.21.155 DEPRECIATION SCHEDULES (1) remains the same.

(2) The trended depreciation schedules for tax year 2014 2015 are listed below. The categories are explained in ARM 42.21.156. The trend factors are derived according to ARM 42.21.156 and 42.21.157.

 

CATEGORY 1

 

YEAR NEW/

ACQUIRED

%GOOD

TREND

FACTOR

TRENDED

% GOOD

2013 2014

70%

1.000

70%

2012 2013

45%

0.953 0.986

43 44%

2011 2012

20%

0.879 0.934

18 19%

2010 2011 and older

10%

0.808 0.861

8 9%

 

CATEGORY 2

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

0.962 0.998

66 69%

2011 2012

52%

0.975 0.960

51 50%

2010 2011

34%

0.979 0.973

33%

2009 2010 and older

23%

0.937 0.977

22%

 

CATEGORY 3

 

 

 

 

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

0.987 0.999

68 69%

2011 2012

52%

0.959 0.983

50 51%

2010 2011

34%

0.925 0.955

31 32%

2009 2010 and older

23%

0.909 0.921

21%

 

CATEGORY 4

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

0.999 0.996

69%

2011 2012

52%

0.995 0.995

52%

2010 2011

34%

0.983 0.991

33 34%

2009 2010 and older

23%

0.972 0.978

22 23%

 

CATEGORY 5

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

1.011 1.008

70%

2011 2012

52%

1.042 1.020

54 53%

2010 2011

34%

1.051 1.050

36%

2009 2010 and older

23%

1.056 1.059

24%

 

CATEGORY 6

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

85%

1.000

85%

2012 2013

69%

1.016 1.015

70%

2011 2012

52%

1.044 1.032

54%

2010 2011

34%

1.080 1.060

37 36%

2009 2010 and older

23%

1.100 1.097

25%

 

CATEGORY 7

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

92%

1.000

92%

2012 2013

84%

1.017 1.015

85%

2011 2012

76%

1.047 1.031

80 78%

2010 2011

67%

1.064 1.063

71%

2009 2010

58%

1.058 1.079

61 63%

2008 2009

49%

1.092 1.074

53%

2007 2008

39%

1.111 1.108

43%

2006 2007

30%

1.135 1.128

34%

2005 2006

24%

1.170 1.152

28%

2004 2005 and older

21%

1.201 1.187

25%

 

CATEGORY 8

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2013 2014

92%

1.000

92%

2012 2013

84%

1.004 1.012

84 85%

2011 2012

76%

1.033 1.016

78 77%

2010 2011

67%

1.043 1.045

70%

2009 2010

58%

1.047 1.056

61%

2008 2009

49%

1.114 1.060

55 52%

2007 2008

39%

1.138 1.127

44%

2006 2007

30%

1.170 1.152

35%

2005 2006

24%

1.208 1.185

29 28%

2004 2005 and older

21%

1.254 1.223

26%

 

(3) This rule is effective for tax years beginning after December 31, 2013 2014.

 

AUTH15-1-201, MCA

IMP15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASONABLE NECESSITY: The department proposes amending ARM 42.21.155 to strike an incorrect implementing statute.

 

42.21.165 LIVESTOCK REPORTING REQUIREMENTS (1) A taxpayer person who raises or owns livestock in the state of Montana subject to the per capita fees under 15-24-921, MCA, and the requirement of a written statement under 15-24-903, MCA, must submit a completed livestock reporting form.

(2) The department must receive the completed statement postmarked completed livestock reporting form must be submitted no later than February 15 March 1If a taxpayer fails to timely return a completed livestock reporting form, the The department will issue written notice to the taxpayer advising the taxpayer inform the livestock owner of their obligation to return a completed complete and submit a livestock reporting form. The notice shall also and advise the taxpayer livestock owner that they are subject to penalty under the provisions of 15-8-309 and 15-24-904, MCA, for failure to return submit the reporting form within ten days of receiving the reminder notice in a timely manner.

(3) If a taxpayer livestock owner fails to return a completed and submit a livestock reporting form during the timeframes time frame set forth in (2), the department shall, after ten days' notice, may assess a $25 penalty under 15-8-309, and 15-24-904, MCA.

(4) If, after issuance of the notice required in (2), a taxpayer a livestock owner fails to return submit a completed livestock reporting form, the department will estimate livestock numbers based upon the best information available. The department may utilize previously reported livestock numbers, brand inspections, or other available information as a basis for its estimation.

(5) Statements postmarked submitted after the deadline in (2) will may be assessed a penalty unless:

(a) the taxpayer livestock owner provides evidence of their inability to comply due to hospitalization, physical illness, infirmity, or mental illness; and

(b) evidence that this/these conditions(s), while not necessarily continuous, existed at sufficient levels in the period of January 1 to March 15 1 to prevent timely filing of the reporting form. 

 

AUTH15-1-201, MCA

IMP15-8-309, 15-24-903, 15-24-904, 15-24-921, MCA

 

REASONABLE NECESSITY: The department proposes amending ARM 42.21.165 to more accurately reflect the department's move to an electronic online livestock reporting process. Because livestock is not subject to ad valorem taxes, the department is completely separating livestock reporting for per capita fee assessment from personal property reporting which is required for ad valorem property tax assessment.

 

42.22.1311 INDUSTRIAL MACHINERY AND EQUIPMENT TREND FACTORS (1) The trend factors will be used to value industrial machinery and equipment for ad valorem tax purposes pursuant to ARM 42.22.1306. The department uses annual cost indexes from the Marshall & Swift Valuation Service Guide. The current index is divided by the annual index for each year to arrive at a trending factor. Each major industry has its own trend table. Where no index existed in the Marshall & Swift Valuation Service Guide for a particular industry, that industry was grouped with other industries using similar equipment. The department will utilize the machinery and equipment trend factors that are set forth in the following tables:

(2) Life expectancies for industrial machinery and equipment are shown in the trend table below.

 

2013 2015 INDUSTRIAL MACHINERY AND EQUIPMENT TREND FACTORS

 

Description                                                                Trend Table               Life

(a) through (cj) remain the same.

Note: 1. Lab equipment is included in its related industry's table at ten-year life expectancy.

 

(3) Tables 1 through 32 represent the yearly trend factors for each of the categories.

 

YEAR

TABLE 1

TABLE 2

TABLE 3

TABLE 4

TABLE 5

 

Airplane Mfg.

Baking

Bottling

Brew/Dis.

Candy Confect.

2013

1.000

1.000

1.000

1.000

1.000

2012

1.000

1.008

1.004

1.008

1.008

2011

1.030

1.036

1.032

1.034

1.037

2010

1.068

1.070

1.065

1.063

1.070

2009

1.051

1.062

1.055

1.057

1.064

2008

1.081

1.088

1.083

1.087

1.089

2007

1.125

1.132

1.130

1.135

1.133

2006

1.187

1.212

1.198

1.203

1.217

2005

1.249

1.268

1.260

1.264

1.272

2004

1.352

1.363

1.366

1.366

1.367

2003

1.404

1.415

1.416

1.413

1.417

2002

1.429

1.439

1.442

1.438

1.441

2001

1.434

1.448

1.449

1.447

1.450

2000

1.444

1.464

1.461

1.463

1.467

1999

1.471

1.494

1.489

1.490

1.496

1998

1.472

1.499

1.492

1.498

1.501

1997

1.484

1.514

1.504

1.513

1.517

1996

1.502

1.540

1.527

1.538

1.545

1995

1.522

1.563

1.550

1.567

1.569

1994

1.583

1.627

1.611

1.626

1.634

 

2014

1.000

1.000

1.000

1.000

1.000

2013

1.007

1.011

1.009

1.010

1.011

2012

1.008

1.020

1.013

1.019

1.021

2011

1.037

1.048

1.041

1.046

1.049

2010

1.076

1.082

1.075

1.074

1.083

2009

1.058

1.074

1.065

1.068

1.077

2008

1.089

1.101

1.093

1.098

1.102

2007

1.133

1.145

1.141

1.147

1.147

2006

1.196

1.226

1.209

1.216

1.232

2005

1.258

1.282

1.271

1.278

1.288

2004

1.362

1.379

1.378

1.381

1.384

2003

1.414

1.431

1.429

1.428

1.434

2002

1.440

1.456

1.455

1.454

1.458

2001

1.445

1.465

1.462

1.463

1.468

2000

1.455

1.481

1.475

1.479

1.485

1999

1.481

1.511

1.503

1.507

1.514

1998

1.483

1.516

1.506

1.515

1.519

1997

1.495

1.532

1.518

1.530

1.536

1996

1.513

1.558

1.541

1.554

1.564

1995

1.533

1.581

1.564

1.584

1.588

 


YEAR

TABLE 6

TABLE 7

TABLE 8

TABLE 9

TABLE 10

 

Cement Mfg.

Chemical Mfg.

Clay Mfg.

Contractor Eq.

Creamery/Dairy

2013

1.000

1.000

1.000

1.000

1.000

2012

1.009

1.001

1.010

1.017

1.008

2011

1.044

1.029

1.043

1.051

1.036

2010

1.073

1.056

1.074

1.081

1.069

2009

1.059

1.042

1.066

1.077

1.065

2008

1.107

1.078

1.115

1.109

1.089

2007

1.156

1.127

1.163

1.144

1.135

2006

1.217

1.193

1.225

1.184

1.215

2005

1.277

1.254

1.284

1.238

1.275

2004

1.388

1.360

1.386

1.322

1.372

2003

1.443

1.408

1.436

1.360

1.420

2002

1.473

1.436

1.464

1.382

1.443

2001

1.482

1.444

1.474

1.393

1.453

2000

1.496

1.458

1.490

1.401

1.469

1999

1.521

1.481

1.515

1.425

1.499

1998

1.528

1.489

1.520

1.437

1.505

1997

1.543

1.504

1.536

1.453

1.520

1996

1.563

1.523

1.560

1.481

1.546

1995

1.592

1.553

1.590

1.506

1.573

1994

1.648

1.610

1.645

1.547

1.639

 

2014

1.000

1.000

1.000

1.000

1.000

2013

1.010

1.009

1.011

1.011

1.010

2012

1.020

1.010

1.023

1.030

1.020

2011

1.055

1.038

1.056

1.065

1.048

2010

1.085

1.066

1.087

1.095

1.082

2009

1.071

1.051

1.079

1.091

1.077

2008

1.119

1.088

1.129

1.123

1.101

2007

1.169

1.137

1.177

1.159

1.148

2006

1.230

1.204

1.241

1.200

1.228

2005

1.291

1.265

1.300

1.254

1.289

2004

1.403

1.372

1.403

1.339

1.387

2003

1.459

1.420

1.453

1.378

1.436

2002

1.489

1.449

1.482

1.400

1.459

2001

1.498

1.457

1.492

1.411

1.469

2000

1.513

1.471

1.508

1.419

1.485

1999

1.538

1.495

1.534

1.444

1.516

1998

1.545

1.502

1.539

1.455

1.522

1997

1.561

1.517

1.555

1.472

1.537

1996

1.580

1.537

1.579

1.501

1.564

1995

1.609

1.567

1.609

1.525

1.591

 

YEAR

TABLE 11

TABLE 12

TABLE 13

TABLE 14

TABLE 15

 

Elec. Pwr. Eq.

Elec. Eq. Mfg.

 

Cannery/Fish

Flour, Cer. Feed

 

Cannery/Fruit

2013

1.000

1.000

1.000

1.000

1.000

2012

0.990

0.993

1.007

1.007

1.011

2011

1.012

1.019

1.036

1.036

1.039

2010

1.068

1.069

1.070

1.070

1.072

2009

1.060

1.054

1.061

1.061

1.068

2008

1.064

1.072

1.089

1.089

1.089

2007

1.122

1.124

1.133

1.136

1.130

2006

1.215

1.203

1.213

1.210

1.204

2005

1.303

1.277

1.268

1.272

1.256

2004

1.426

1.391

1.367

1.373

1.347

2003

1.491

1.450

1.419

1.423

1.397

2002

1.516

1.475

1.445

1.447

1.419

2001

1.510

1.473

1.454

1.455

1.430

2000

1.521

1.484

1.470

1.471

1.444

1999

1.551

1.511

1.499

1.500

1.474

1998

1.544

1.506

1.504

1.507

1.479

1997

1.547

1.512

1.519

1.521

1.493

1996

1.555

1.526

1.547

1.544

1.523

1995

1.568

1.544

1.570

1.569

1.543

1994

1.651

1.618

1.634

1.632

1.602

 

2014

1.000

1.000

1.000

1.000

1.000

2013

0.999

1.003

1.011

1.010

1.012

2012

0.987

0.996

1.020

1.018

1.024

2011

1.010

1.022

1.049

1.047

1.053

2010

1.065

1.071

1.084

1.082

1.087

2009

1.057

1.057

1.074

1.073

1.082

2008

1.061

1.074

1.102

1.101

1.104

2007

1.119

1.126

1.147

1.148

1.145

2006

1.212

1.205

1.228

1.223

1.220

2005

1.300

1.280

1.284

1.285

1.273

2004

1.422

1.394

1.384

1.387

1.365

2003

1.487

1.454

1.437

1.438

1.416

2002

1.512

1.478

1.462

1.462

1.439

2001

1.506

1.477

1.472

1.470

1.449

2000

1.517

1.487

1.488

1.486

1.464

1999

1.547

1.515

1.518

1.516

1.494

1998

1.540

1.509

1.522

1.522

1.499

1997

1.543

1.516

1.538

1.537

1.513

1996

1.551

1.530

1.566

1.561

1.544

1995

1.564

1.547

1.589

1.585

1.564

 

YEAR

TABLE 16

TABLE 17

TABLE 18

TABLE 19

TABLE 20

 

Packing/ Fruit

Laundry/

Clean

 

Logging Eq.

Packing/

Meat

Metal

Work

2013

1.000

1.000

1.000

1.000

1.000

2012

1.017

1.006

1.009

1.010

1.029

2011

1.045

1.035

1.039

1.039

1.065

2010

1.076

1.069

1.069

1.070

1.044

2009

1.075

1.059

1.054

1.065

1.083

2008

1.097

1.095

1.089

1.099

1.125

2007

1.135

1.140

1.128

1.142

1.188

2006

1.188

1.202

1.175

1.217

1.240

2005

1.237

1.256

1.227

1.269

1.338

2004

1.321

1.355

1.319

1.360

1.381

2003

1.366

1.404

1.366

1.406

1.403

2002

1.387

1.430

1.387

1.430

1.406

2001

1.399

1.438

1.396

1.441

1.415

2000

1.410

1.450

1.404

1.457

1.435

1999

1.441

1.477

1.429

1.484

1.435

1998

1.447

1.480

1.435

1.491

1.448

1997

1.459

1.491

1.447

1.508

1.467

1996

1.493

1.515

1.469

1.535

1.493

1995

1.512

1.539

1.490

1.562

1.550

1994

1.559

1.594

1.538

1.621

1.590

 

2014

1.000

1.000

1.000

1.000

1.000

2013

1.014

1.010

1.010

1.012

1.008

2012

1.033

1.018

1.020

1.024

1.008

2011

1.062

1.047

1.051

1.054

1.039

2010

1.094

1.081

1.081

1.085

1.074

2009

1.093

1.071

1.066

1.080

1.054

2008

1.114

1.107

1.101

1.114

1.093

2007

1.153

1.153

1.140

1.158

1.135

2006

1.207

1.216

1.188

1.234

1.198

2005

1.257

1.270

1.240

1.287

1.251

2004

1.342

1.370

1.333

1.379

1.350

2003

1.388

1.420

1.381

1.426

1.393

2002

1.409

1.446

1.402

1.450

1.416

2001

1.422

1.454

1.411

1.461

1.419

2000

1.433

1.466

1.419

1.477

1.428

1999

1.464

1.494

1.445

1.505

1.448

1998

1.470

1.496

1.450

1.512

1.448

1997

1.482

1.508

1.462

1.529

1.462

1996

1.517

1.532

1.485

1.556

1.480

1995

1.536

1.556

1.506

1.583

1.506

 

 

YEAR

TABLE 21

TABLE 22

TABLE 23

TABLE 24

TABLE 25

 

Mine

Mill

Paint

Mfg.

 

Petroleum

 

Printing

Paper

Mfg.

2013

1.000

1.000

1.000

1.000

1.000

2012

1.017

1.004

1.006

1.003

1.008

2011

1.062

1.035

1.036

1.030

1.038

2010

1.096

1.069

1.063

1.061

1.072

2009

1.095

1.056

1.046

1.051

1.060

2008

1.145

1.093

1.089

1.074

1.094

2007

1.194

1.141

1.143

1.112

1.138

2006

1.246

1.208

1.215

1.173

1.196

2005

1.307

1.268

1.287

1.220

1.250

2004

1.417

1.375

1.398

1.301

1.355

2003

1.471

1.427

1.448

1.338

1.407

2002

1.499

1.456

1.476

1.360

1.434

2001

1.517

1.465

1.491

1.362

1.446

2000

1.528

1.478

1.510

1.373

1.455

1999

1.553

1.506

1.532

1.392

1.484

1998

1.560

1.510

1.539

1.394

1.488

1997

1.577

1.525

1.560

1.401

1.501

1996

1.603

1.548

1.586

1.424

1.531

1995

1.628

1.575

1.618

1.445

1.551

1994

1.679

1.636

1.677

1.499

1.604

 

2014

1.000

1.000

1.000

1.000

1.000

2013

1.013