BEFORE THE Department of REVENUE
OF THE STATE OF MONTANA
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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 AMENDMENT |
TO: All Concerned Persons
1. On October 23, 2014, the Department of Revenue published MAR Notice No. 42-2-923 pertaining to the public hearing on the proposed amendment of the above-stated rules at page 2589 of the 2014 Montana Administrative Register, Issue Number 20.
2. On November 12, 2014, a public hearing was held to consider the proposed amendments. No members of the public attended the hearing and no written comments were received.
3. The department has amended 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, 42.21.153, 42.21.155, 42.21.165, and 42.22.1311 exactly as proposed.
4. The department initially determined that the proposed amendments to the rules in the notice would not significantly and directly impact small businesses. However, after further consideration, the department wants to take a closer look at the potential impact from a portion of the proposed amendments to ARM 42.21.151. Therefore, the department is amending the rule as proposed, but reversing the proposed amendments that require further review, as follows, new matter underlined, deleted matter interlined:
42.21.151 LOCALLY ASSESSED CABLE TELEVISION SYSTEMS (1) The average market value of central office or headend type equipment will be determined by using a ten-year trended depreciation schedule for television cable systems is $2,000 per mile of coaxial cable (transmission line) and $25 per service drop.
(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.
(5)(2) The average market value of for the dishes and towers will be determined by using a five-year trended depreciation schedule for on 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.
(6)(3) The trended depreciation schedules will be applied to the acquired cost including installation and year acquired of the equipment dish or tower.
(7)(4) The trended depreciation schedules referred to in (1), (2), and (5) (2) and (3) are listed below and shall be in effect for tax year 2015.
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TEN-YEAR "HEADEND EQUIPMENT"
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YEAR NEW/
ACQUIRED
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% GOOD
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TREND
FACTOR
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TRENDED
% GOOD
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2014
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92%
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1.000
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92%
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2013
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84%
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0.999
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84%
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2012
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76%
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0.983
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75%
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2011
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67%
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0.955
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64%
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2010
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58%
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0.921
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53%
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2009
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49%
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0.905
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44%
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2008
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39%
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0.874
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34%
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2007
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30%
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0.790
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24%
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2006
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24%
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0.793
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19%
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2005 and older
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21%
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0.783
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16%
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TWENTY-YEAR "TRANSMISSION & DISTRIBUTION ASSETS"
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YEAR NEW/
ACQUIRED
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% GOOD
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TREND
FACTOR
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TRENDED
% GOOD
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2014
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97%
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1.000
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97%
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2013
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93%
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0.999
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93%
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2012
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90%
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0.983
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89%
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2011
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86%
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0.955
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82%
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2010
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82%
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0.921
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76%
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2009
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78%
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0.905
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71%
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2008
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74%
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0.874
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65%
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2007
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70%
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0.790
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55%
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2006
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65%
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0.793
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52%
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2005
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60%
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0.783
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47%
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2004
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55%
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0.767
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42%
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2003
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50%
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0.751
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38%
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2002
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45%
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0.742
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33%
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2001
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40%
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0.717
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29%
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2000
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35%
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0.706
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25%
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1999
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31%
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0.696
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22%
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1998
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27%
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0.678
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18%
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1997
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24%
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0.646
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16%
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1996
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22%
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0.617
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14%
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1995 and older
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21%
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0.598
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13%
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FIVE-YEAR "DISHES" |
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YEAR NEW/
ACQUIRED |
% GOOD |
TREND
FACTOR |
TRENDED
% GOOD |
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2014 |
85% |
1.000 |
85% |
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2013 |
69% |
1.010 |
70% |
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2012 |
52% |
1.018 |
53% |
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2011 |
34% |
1.047 |
36% |
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2010 and older |
23% |
1.080 |
25% |
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TEN-YEAR "TOWERS" |
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YEAR NEW/
ACQUIRED |
% GOOD |
TREND
FACTOR |
TRENDED
% GOOD |
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2014 |
92% |
1.000 |
92% |
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2013 |
84% |
1.010 |
85% |
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2012 |
76% |
1.018 |
77% |
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2011 |
67% |
1.047 |
70% |
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2010 |
58% |
1.080 |
63% |
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2009 |
49% |
1.072 |
53% |
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2008 |
39% |
1.103 |
43% |
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2007 |
30% |
1.146 |
34% |
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2006 |
24% |
1.209 |
29% |
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2005 and older |
21% |
1.265 |
27% |
(8) remains as proposed but is renumbered (5).
/s/ Laurie Logan /s/ Mike Kadas
Laurie Logan Mike Kadas
Rule Reviewer Director of Revenue
Certified to the Secretary of State December 1, 2014.
