42.22.1312 INDUSTRIAL MACHINERY AND EQUIPMENT DEPRECIATION SCHEDULE
(1) The department will utilize the machinery and equipment depreciation schedule which is set forth in the following table. The depreciation schedule will be used to value industrial machinery and equipment for ad valorem tax purposes pursuant to ARM 42.22.1306.
MANUFACTURING MACHINERY AND EQUIPMENT PERCENT GOOD TABLE
(2) The department will utilize the depreciation schedules set forth above as reflected in the following example:
The Trending/Depreciation Procedure
In order to use the economic age-life method to value machinery and equipment, several steps must be followed.
1. Determine the economic life of the subject industry.
2. Acquire a set of reasonable trends for that economic life.
3. Acquire the original installed cost (direct and indirect) for the subject equipment.
4. Apply the appropriate trend factor to the original installed cost to determine replacement cost new (RCN) .
5. Depreciate the RCN on the basis of age to arrive at sound value.
Industry - Sawmill
Economic life - 10 years
2013 Table - Table 18
*The trending factor is applied only to the last year of the economic life. Although the equipment is more than 20 years old, it is trended by the 10th year trend.
History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-156, 15-6-157, 15-6-158, 15-8-111, MCA; NEW, 1986 MAR p. 2074, Eff. 12/27/86; AMD, 1992 MAR p. 2560, Eff. 11/26/92; AMD, 1993 MAR p. 3062, Eff. 12/24/93; AMD, 1994 MAR p. 3197, Eff. 12/23/94; AMD, 1996 MAR p. 162, Eff. 1/12/96; AMD, 1997 MAR p. 2297, Eff. 12/16/97; AMD, 1998 MAR p. 3318, Eff. 12/18/98; AMD, 1999 MAR p. 2914, Eff. 12/17/99; AMD, 2003 MAR p. 2901, Eff. 12/25/03; AMD, 2012 MAR p. 2496, Eff. 12/7/12; AMD, 2015 MAR p. 2149, Eff. 12/11/15.