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Montana Administrative Register Notice 42-2-946 No. 20   10/29/2015    
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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, 42.21.131, 42.21.137, 42.21.138, 42.21.139, 42.21.140, 42.21.151, 42.21.153, 42.21.155, 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 19, 2015, at 1:30 p.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 facing Sanders Street.

 

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 advise the department of the nature of the accommodation needed no later than 5 p.m. on November 9, 2015. 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.

ARM 42.21.157 requires the department to update the depreciation schedules of tangible personal property on an annual basis. The annual changes 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. Therefore, it is reasonably necessary to update the trend tables to reflect any changes for the upcoming year.

The department has considered the small business impact study requirements of 2-4-111, MCA, and determined that with the exception of ARM 42.21.123, the proposed amendments to the above-stated rules will not significantly and directly impact small businesses. For detail on how the proposed amendments to ARM 42.21.123 could significantly and directly impact some small businesses, see the supplemental reason statement for ARM 42.21.123 and also the department's small business impact analysis for this proposal notice, MAR Notice No. 42-2-946, located at revenue.mt.gov/rules.

This general statement of reasonable necessity applies to all of the following proposed rule amendments and has been supplemented as appropriate for any further amendments.

 

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

 

42.21.113 LEASED AND RENTAL EQUIPMENT (1) remains the same.

(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

2014 2015

70%

2013 2014

44%

2012 2013

19%

2011 and older 2012

9%

Older

5%

 

(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

2014 2015

85%

2013 2014

69% 71%

2012 2013

50% 53%

2011 2012

33%

2010 and older 2011

22% 23%

Older

18%

 

(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

2014 2015

92%

2013 2014

85% 86%

2012 2013

77% 79%

2011 2012

70%

2010 2011

61% 62%

2009 2010

52% 53%

2008 2009

44% 42%

2007 2008

35%

2006 2007

28%

2005 and older 2006

26% 25%

Older

20%

 

(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

2015 2016

80%

2014 2015

65%

2013 2014

62% 60%

2012 2013

58% 57%

2011 2012

52%

2010 2011

49% 48%

2009 2010

43% 46%

2008 2009

40% 43%

2007 2008

37% 38%

2006 2007

34% 36%

2005 2006

33% 34%

2004 2005

32% 33%

2003 2004

29% 30%

2002 2003

27% 28%

2001 2002

25% 26%

2000 2001

23%

1999 2000

22% 23%

1998 1999

21%

1997 1998

21% 20%

1996 1997 and older

19% 20%

 

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

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2014 2015

25%

2013 2014

15%

2012 2013 and older

10%

 

(2) through (4) remain the same.

(5) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, 15-23-108, MCA

IMP: 15-6-135, 15-6-138, 15-6-202, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.113 to add a bottom row exclusively for older years in tables (a) through (c) to more precisely apply a 5 percent to 25 percent residual value as described in ARM 42.21.155(1).

 

42.21.123 FARM MACHINERY AND EQUIPMENT (1) remains the same.

(2) The market value for farm machinery and equipment shall be the "average wholesale" value most current quick sale as shown in the Iron Solutions, Northwest Region Official Guide, Fall Edition, for the year previous to online version of the Green Guide known as the Equipment Watch, as of October of the year prior to the year of the assessment appraisal. This online guide may be reviewed in the department or purchased from the publisher: North American Equipment Dealers Association, 1195 Smizer Mill Road, Fenton, Missouri 63026-3480 at equipmentwatch.com or 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 quick sale value. The department's farm machinery manual is hereby incorporated by reference. Customers can contact the department to obtain copies.

(4) and (5) remain the same.

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

(a) the equipment cannot be valued under (2) but an average wholesale a quick sale 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 current Official Guide mentioned guide cited in (2) for the same make and model. The trended average wholesale quick sale value for farm equipment shall be ascertained by trending the average wholesale quick sale 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 quick sale 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 2015 2016. 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 quick sale value.

 

YEAR NEW/ACQUIRED

TRENDED % GOOD
AVERAGE WHOLESALE

2015 2016

80%

2014 2015

75% 54%

2013 2014

66% 48%

2012 2013

61% 47%

2011 2012

58% 46%

2010 2011

55% 44%

2009 2010

48% 43%

2008 2009

48% 41%

2007 2008

47% 40%

2006 2007

44% 39%

2005 2006

41% 38%

2004 2005

39% 38%

2003 2004

35% 38%

2002 2003

31% 36%

2001 2002

28% 35%

2000 2001

27% 34%

1999 2000 and older

21% 30%

 

(9) remains the same.

(10) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.123 to change the farm machinery valuation source. Each year the department performs valuation look-ups and calculates the depreciation trends for the coming year using values that are available at that time. The department has been using an online valuation guide for heavy equipment since 2010. That online guide now also includes farm machinery values.

Therefore, the department proposes transitioning to this single online source for valuing both heavy equipment and farm machinery beginning in 2016. The proposed transition to using the online Equipment Watch guide will save the department in excess of $20,000 in subscription fees annually because the proposed change eliminates the need for the department to separately purchase hard copies of the Iron Solutions Northwest Region Official Guide to use for valuing farm machinery.

Owners of farm machinery and equipment will notice a significant change, either up or down depending on the model year of the equipment, in the trended good percentage table during the first year of this proposed transition. For example, as proposed in the table amendments for 2016 using the online Equipment Watch guide, farm machinery and equipment acquired new in 2015 will see a trended percentage wholesale change from 75 percent good down to 54 percent good. At the same time, equipment acquired new in 2004 will have a trended percentage wholesale change from 35 percent up to 38 percent. However, after this initial transition year, the department expects future valuation differences to stabilize and the percentages in the chart to fluctuate minimally from year-to-year as they have historically.

 

42.21.131 HEAVY EQUIPMENT (1) The wholesale market value of heavy equipment shall be the most current quick sale as shown in the "Green Guide" and "Green Guide for Older Equipment" or the on-line online version of the Green Guide known as Equipment Watch, as of January 1 of October of the year prior to the year of assessment appraisal. This online guide may be reviewed in the department or purchased from the publisher and is incorporated by reference: Dataquest, 1290 Ridder Park Drive, San Jose, California 95131.

(2) For all heavy equipment which cannot be valued under (1), the department shall try to ascertain the original FOB (free on board value) through old heavy equipment valuation guidebooks. If an original FOB cannot be ascertained, the department may use trending to determine the FOB. The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (5) to arrive at a value which approximates wholesale value. The trend factors are calculated using the most recent Contractor's Equipment factors available in the Marshall & Swift Valuation Service Guide for the year of assessment appraisal. The Marshall & Swift Valuation Service Guide, published by Marshall and Swift Publication Company, 915 Wilshire Boulevard, 8th Floor, P.O. Box 26307, Los Angeles, California 90026-0307, is adopted by reference.

(3) and (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 2015 2016. The values derived through the use of these percentages approximate the "quick sale" values as calculated in provided in the guidebooks listed in (1).

 

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

WHOLESALE

2015 2016

80%

2014 2015

65%

2013 2014

62% 60%

2012 2013

58% 57%

2011 2012

52%

2010 2011

49% 48%

2009 2010

43% 46%

2008 2009

40% 43%

2007 2008

37% 38%

2006 2007

34% 36%

2005 2006

33% 34%

2004 2005

32% 33%

2003 2004

29% 30%

2002 2003

27% 28%

2001 2002

25% 26%

2000 2001

23%

1999 2000

22% 23%

1998 1999

21%

1997 1998

21% 20%

1996 1997 and older

19% 20%

 

(6) This rule is effective for tax years beginning after December 31, 2014 2015, and applies to all heavy equipment.

 

AUTH: 15-1-201, 15-23-108, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.131 to strike outdated references to hardcopy valuation guides in (1). The department has fully transitioned away from using the hardcopy guides to use of the online guide. This has improved efficiency and created subscription cost savings. The department further proposes amending (1) to clarify that heavy equipment assessments are based on values determined in the fall of the year prior to the year of appraisal and replacing the word "assessment" with "appraisal" to reflect the term currently used.

 

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 2015 2016.

 

SEISMOGRAPH UNIT

YEAR NEW/ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

WHOLESALE FACTOR

WHOLESALE % GOOD

2015 2016

100%

1.000

100%

80%

80%

2014 2015

85%

1.000

85%

80%

68%

2013 2014

69%

1.009

70%

80%

56%

2012 2013

52%

1.010 1.021

53%

80%

42%

2011 2012

34%

1.038 1.023

35%

80%

28%

2010 2011

23%

1.066 1.051

25% 24%

80%

20% 19%

2009 2010-2006

18%

1.051 1.079

19%

80%

15% 16%

2005 and older

5%

5%

 

SEISMOGRAPH ALLIED EQUIPMENT

YEAR NEW/
ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

2015 2016

100%

1.000

100%

2014 2015

85%

1.000

85%

2013 2014

69%

1.009

70%

2012 2013

52%

1.010 1.021

53%

2011 2012

34%

1.038 1.023

35%

2010 2011

23%

1.066 1.051

25% 24%

2009 2010-2006

18%

1.051 1.079

19%

2005 and older

5%

 

5%

 

(5) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

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 2015 2016.

 

YEAR NEW/ ACQUIRED

% GOOD

TREND FACTOR

TRENDED % GOOD

2015 2016

100%

1.000

100%

2014 2015

95%

1.000

95%

2013 2014

90%

1.009

91%

2012 2013

85%

1.010 1.021

86% 87%

2011 2012

79%

1.038 1.023

82% 81%

2010 2011

73%

1.066 1.051

78% 77%

2009 2010

68%

1.051 1.079

71% 73%

2008 2009

62%

1.088 1.064

67% 66%

2007 2008

55%

1.137 1.101

63% 61%

2006 2007

49%

1.204 1.151

59% 56%

2005 2006

43%

1.265 1.219

54% 52%

2004 2005

37%

1.372 1.281

51% 47%

2003 2004

31%

1.420 1.390

44% 43%

2002 2003

26%

1.449 1.438

38% 37%

2001 2002

23%

1.457 1.467

34%

2000 2001 and older

21%

1.471 1.475

31%

 

(4) and (5) remain the same.

(6) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-213, 15-6-219, MCA

 

42.21.139 WORK-OVER AND SERVICE RIGS (1) through (3) remain the same.

(4) For self-propelled wheeled work-over and service rigs, an additional 80 percent wholesale factor shall be used in determining market value in conjunction with the schedules mentioned referenced in (2).

(5) The trended depreciation schedule referred to in (2) and (4) is listed below and shall be used for tax year 2015 2016.

 

YEAR/NEW ACQUIRED

% GOOD

TREND FACTOR

WHOLESALE FACTOR

TRENDED WHOLESALE % GOOD

2015 2016

100%

1.000

80%

80%

2014 2015

92%

1.000

80%

74%

2013 2014

84%

1.009

80%

68%

2012 2013

76%

1.010 1.021

80%

61% 62%

2011 2012

67%

1.038 1.023

80%

56% 55%

2010 2011

58%

1.066 1.051

80%

49%

2009 2010

49%

1.051 1.079

80%

41% 42%

2008 2009

39%

1.088 1.064

80%

34% 33%

2007 2008

30%

1.137 1.101

80%

27% 26%

2006 2007

24%

1.204 1.151

80%

23% 22%

2005 2006 and older

21%

1.265 1.219

80%

21% 20%

 

(6) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.139 to make a grammatical revision in (4).

 

42.21.140 OIL DRILLING RIGS (1) Bids for new rigs will be solicited from manufacturers of oil drilling rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below for oil drilling rigs, there will be two replacement cost categories. One category will represent current replacement cost of a mechanical rig and the second category will represent current replacement cost of an electric rig. Each rig as it is assessed will be placed in a value category based on its depth.

 

DEPTH CATEGORIES

 

 

 

Class

 

Depth Capacity

 

 

 

1

. . . . . . . . . . . . . . . . . . . . . . . . . . .

         0     to 3,000 ft.

2

. . . . . . . . . . . . . . . . . . . . . . . . . . .

 3,001 ft. to 5,000 ft.

3

. . . . . . . . . . . . . . . . . . . . . . . . . . .

 5,001 ft. to 8,000 ft.

4

. . . . . . . . . . . . . . . . . . . . . . . . . . .

 7,501 8,001 ft. to 10,000 ft.

5

. . . . . . . . . . . . . . . . . . . . . . . . . . .

10,001 ft. to 12,500 ft.

6

. . . . . . . . . . . . . . . . . . . . . . . . . . .

12,501 ft. to 15,000 ft.

7

. . . . . . . . . . . . . . . . . . . . . . . . . . .

15,001 ft. to 20,000 ft.

8

. . . . . . . . . . . . . . . . . . . . . . . . . . .

20,001 ft. and over

 

MANUFACTURER'S

ELECTRICAL

MECHANICAL

DEPTH RATING

RIG R.C.N

RIG R.C.N

         0     -  3,000 ft.

          $

$ 285,209

 3,001 ft. -  5,000 ft.

 

  432,135

 5,001 ft. -  7,500 ft.

     868,250

  654,750

 7,501 ft. - 10,000 ft.

 1,167,210

  998,750

10,001 ft. - 12,500 ft.

 1,265,500

1,130,600

12,501 ft. - 15,000 ft.

 1,720,400

1,538,500

15,001 ft. - 20,000 ft.

 1,990,100

 

20,001 ft. and over

 2,036,047

 

 

The depth capacity for drilling rigs will be based on the "Manufacturers Depth Rating." These replacement costs will then be depreciated to arrive at market value according to the schedule mentioned provided in (2).

(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 2015 2016 is listed below.

 

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2015 2016

100%

1.000

100%

2014 2015

92%

1.000

92%

2013 2014

84%

1.009

85%

2012 2013

76%

1.010 1.021

77% 78%

2011 2012

67%

1.038 1.023

70% 69%

2010 2011

58%

1.066 1.051

62% 61%

2009 2010

49%

1.051 1.079

51% 53%

2008 2009

39%

1.088 1.064

42% 41%

2007 2008

30%

1.137 1.101

34% 33%

2006 2007

24%

1.204 1.151

29% 28%

2005 2006 and older

21%

1.265 1.219

27% 26%

 

(3) remains the same.

(4) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.140 to correct a wrong number in the depth category table and to make a grammatical revision in (1).

 

42.21.151 LOCALLY ASSESSED CABLE TELEVISION SYSTEMS 

(1) through (3) remain the same.

(4) The trended depreciation schedules referred to in (2) and (3) are listed below and shall be in effect for tax year 2015 2016.

 

FIVE-YEAR "DISHES"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

1.010

70%

2012 2013

52%

1.018 1.023

53%

2011 2012

34%

1.047 1.032

36% 35%

2010 2011 and older

23%

1.080 1.061

25% 24%

 

TEN-YEAR "TOWERS"

YEAR NEW/
ACQUIRED

% GOOD

TREND
FACTOR

TRENDED
% GOOD

2014 2015

92%

1.000

92%

2013 2014

84%

1.010

85%

2012 2013

76%

1.018 1.023

77% 78%

2011 2012

67%

1.047 1.032

70% 69%

2010 2011

58%

1.080 1.061

63% 62%

2009 2010

49%

1.072 1.094

53% 54%

2008 2009

39%

1.103 1.086

43% 42%

2007 2008

30%

1.146 1.117

34%

2006 2007

24%

1.209 1.161

29% 28%

2005 2006 and older

21%

1.265 1.225

27% 26%

 

(5) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH15-1-201, MCA

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

 

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.

(4) The trend and depreciation schedule referred to in (2) and (3) is listed below.

 

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2014 2015

92%

1.000

92%

2013 2014

84%

1.010

85%

2012 2013

76%

1.018 1.023

77% 78%

2011 2012

67%

1.047 1.032

70% 69%

2010 2011

58%

1.080 1.061

63% 62%

2009 2010

49%

1.072 1.094

53% 54%

2008 2009

39%

1.103 1.086

43% 42%

2007 2008

30%

1.146 1.117

34%

2006 2007

24%

1.209 1.161

29% 28%

2005 2006 and older

21%

1.265 1.225

27% 26%

 

(a) and (b) remain the same.

(4)(5) This methodology is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.153 to add new (4) to provide lead-in language for the depreciation schedule that follows.

 

42.21.155 DEPRECIATION SCHEDULES (1) remains the same.

(2) The trended depreciation schedules for tax year 2015 2016 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

2014 2015

70%

1.000

70%

2013 2014

45%

0.986 0.979

44%

2012 2013

20%

0.934 0.966

19%

2011 and older 2012

10%

0.861 0.915

 9%

Older

5%

 

CATEGORY 2

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

0.998 1.024

69% 71%

2012 2013

52%

0.960 1.022

50% 53%

2011 2012

34%

0.973 0.984

33%

2010 and older 2011

23%

0.977 0.997

22% 23%

Older

18%

 

CATEGORY 3

 

 

 

 

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

0.999 0.995

69%

2012 2013

52%

0.983 0.994

51% 52%

2011 2012

34%

0.955 0.979

32% 33%

2010 and older 2011

23%

0.921 0.950

21% 22%

Older

18%

 

CATEGORY 4

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

0.996 0.989

69% 68%

2012 2013

52%

0.995 0.985

52% 51%

2011 2012

34%

0.991 0.984

34% 33%

2010 and older 2011

23%

0.978 0.981

23%

Older

18%

 

CATEGORY 5

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

1.008 1.013

70%

2012 2013

52%

1.020 1.021

53%

2011 2012

34%

1.050 1.033

36% 35%

2010 and older 2011

23%

1.059 1.064

24%

Older

18%

 

CATEGORY 6

 

 

 

 

YEAR NEW/

 

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

85%

1.000

85%

2013 2014

69%

1.015 1.016

70%

2012 2013

52%

1.032 1.030

54%

2011 2012

34%

1.060 1.051

36%

2010 and older 2011

23%

1.097 1.088

25%

Older

18%

 

CATEGORY 7

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

92%

1.000

92%

2013 2014

84%

1.015 1.012

85%

2012 2013

76%

1.031 1.026

78%

2011 2012

67%

1.063 1.043

71% 70%

2010 2011

58%

1.079 1.075

63% 62%

2009 2010

49%

1.074 1.092

53%

2008 2009

39%

1.108 1.086

43% 42%

2007 2008

30%

1.128 1.120

34%

2006 2007

24%

1.152 1.140

28% 27%

2005 and older 2006

21%

1.187 1.165

25% 24%

Older

20%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 CATEGORY 8

YEAR NEW/

TREND

TRENDED

ACQUIRED

% GOOD

FACTOR

% GOOD

2014 2015

92%

1.000

92%

2013 2014

84%

1.012 1.023

85% 86%

2012 2013

76%

1.016 1.037

77% 79%

2011 2012

67%

1.045 1.042

70%

2010 2011

58%

1.056 1.071

61% 62%

2009 2010

49%

1.060 1.082

52% 53%

2008 2009

39%

1.127 1.087

44% 42%

2007 2008

30%

1.152 1.155

35%

2006 2007

24%

1.185 1.181

28%

2005 and older 2006

21%

1.223 1.214

26% 25%

Older

20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) This rule is effective for tax years beginning after December 31, 2014 2015.

 

AUTH: 15-1-201, MCA

IMP: 15-6-135, 15-6-138, 15-6-219, MCA

 

REASON: The department proposes further amending ARM 42.21.155 to add a bottom row exclusively for "older" years in all of the tables to more precisely apply "a 5 percent to 20 percent residual" value as described in (1).

 

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: tables in (2) and (3).

(2) remains the same.

(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.

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

2015

1.000

1.000

1.000

1.000

1.000

2014

1.006

1.012

1.009

1.011

1.012

2013

1.015

1.026

1.022

1.025

1.027

2012

1.016

1.035

1.027

1.034

1.037

2011

1.046

1.064

1.055

1.061

1.066

2010

1.085

1.099

1.089

1.090

1.101

2009

1.067

1.090

1.079

1.084

1.094

2008

1.097

1.117

1.107

1.115

1.120

2007

1.142

1.162

1.156

1.164

1.165

2006

1.206

1.244

1.225

1.234

1.251

2005

1.268

1.302

1.288

1.297

1.308

2004

1.373

1.400

1.396

1.401

1.406

2003

1.426

1.452

1.448

1.449

1.457

2002

1.452

1.477

1.474

1.475

1.482

2001

1.457

1.487

1.481

1.485

1.491

2000

1.467

1.503

1.494

1.501

1.508

1999

1.494

1.534

1.523

1.529

1.538

1998

1.495

1.539

1.526

1.537

1.543

1997

1.507

1.555

1.537

1.552

1.560

1996

1.525

1.581

1.561

1.577

1.588

1995

1.546

1.605

1.585

1.607

1.613

 

YEAR

TABLE 6

TABLE 7

TABLE 8

TABLE 9

TABLE 10

 

Cement Mfg.

Chemical Mfg.

Clay Mfg.

Contractor Eq.

Creamery/Dairy

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

2015

1.000

1.000

1.000

1.000

1.000

2014

1.008

1.009

1.010

1.012

1.013

2013

1.021

1.021

1.023

1.026

1.027

2012

1.031

1.023

1.035

1.046

1.037

2011

1.067

1.051

1.069

1.080

1.065

2010

1.097

1.079

1.101

1.111

1.099

2009

1.082

1.064

1.093

1.107

1.095

2008

1.131

1.101

1.143

1.140

1.119

2007

1.182

1.152

1.192

1.176

1.167

2006

1.244

1.219

1.256

1.218

1.249

2005

1.305

1.281

1.316

1.272

1.310

2004

1.418

1.390

1.420

1.359

1.410

2003

1.475

1.438

1.471

1.399

1.459

2002

1.505

1.467

1.500

1.420

1.483

2001

1.514

1.475

1.511

1.432

1.493

2000

1.529

1.489

1.527

1.440

1.510

1999

1.555

1.514

1.553

1.465

1.541

1998

1.561

1.521

1.558

1.477

1.547

1997

1.578

1.537

1.575

1.494

1.562

1996

1.597

1.556

1.599

1.523

1.589

1995

1.627

1.587

1.630

1.548

1.617

YEAR

TABLE 11

TABLE 12

TABLE 13

TABLE 14

TABLE 15

 

Elec. Pwr. Eq.

 

Elec. Eq. Mfg.

 

Cannery/Fish

Flour, Cer. Feed

 

Cannery/Fruit

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

2015

1.000

1.000

1.000

1.000

1.000

2014

0.998

1.001

1.012

1.011

1.013

2013

1.000

1.007

1.027

1.024

1.029

2012

0.988

1.000

1.036

1.032

1.041

2011

1.010

1.026

1.065

1.062

1.070

2010

1.066

1.076

1.100

1.097

1.105

2009

1.058

1.061

1.091

1.088

1.100

2008

1.062

1.078

1.119

1.116

1.122

2007

1.120

1.131

1.164

1.164

1.164

2006

1.213

1.210

1.247

1.240

1.240

2005

1.301

1.285

1.304

1.303

1.294

2004

1.423

1.400

1.405

1.406

1.388

2003

1.489

1.459

1.459

1.458

1.439

2002

1.513

1.484

1.485

1.483

1.462

2001

1.507

1.483

1.495

1.491

1.473

2000

1.518

1.493

1.511

1.507

1.488

1999

1.548

1.520

1.541

1.537

1.519

1998

1.541

1.515

1.546

1.544

1.524

1997

1.544

1.522

1.562

1.559

1.538

1996

1.552

1.536

1.590

1.582

1.569

1995

1.565

1.553

1.614

1.607

1.590

 

YEAR

TABLE 16

TABLE 17

TABLE 18

TABLE 19

TABLE 20

 

 

Packing/ Fruit

Laundry/

Clean

 

Logging Eq.

Packing/

Meat

 

Metal Work

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

2015

1.000

1.000

1.000

1.000

1.000

2014

1.014

1.009

1.008

1.014

1.006

2013

1.032

1.023

1.020

1.029

1.018

2012

1.051

1.030

1.031

1.041

1.017

2011

1.081

1.060

1.062

1.072

1.048

2010

1.113

1.094

1.092

1.104

1.084

2009

1.112

1.084

1.077

1.098

1.063

2008

1.134

1.121

1.113

1.133

1.103

2007

1.173

1.167

1.152

1.178

1.146

2006

1.229

1.231

1.201

1.255

1.210

2005

1.279

1.286

1.254

1.309

1.263

2004

1.366

1.387

1.348

1.403

1.363

2003

1.413

1.437

1.396

1.450

1.406

2002

1.434

1.464

1.417

1.475

1.429

2001

1.447

1.472

1.426

1.486

1.432

2000

1.459

1.484

1.434

1.502

1.441

1999

1.490

1.512

1.460

1.530

1.461

1998

1.496

1.515

1.466

1.538

1.461

1997

1.508

1.527

1.478

1.555

1.475

1996

1.544

1.551

1.501

1.583

1.494

1995

1.563

1.575

1.522

1.611

1.520

 

 

YEAR

TABLE 21

TABLE 22

TABLE 23

TABLE 24

TABLE 25

 

 

Mine

Mill

Paint

Mfg.

 

Petroleum

 

Printing

Paper

Mfg.

2014

1.000

1.000

1.000

1.000

1.000

2013

1.013

1.009

1.008

1.006

1.011

2012

1.032

1.014

1.015

1.010

1.020

2011

1.078

1.045

1.045

1.036

1.051

2010

1.113

1.079

1.072

1.068

1.085

2009

1.112

1.067

1.055

1.058

1.073

2008

1.163

1.104

1.098

1.081

1.107

2007

1.212

1.153

1.152

1.119

1.152

2006

1.265

1.220

1.226

1.181

1.210

2005

1.327

1.281

1.298

1.228

1.265

2004

1.439

1.389

1.410

1.309

1.371

2003

1.493

1.442

1.460

1.347

1.424

2002

1.522

1.471

1.489

1.369

1.451

2001

1.540

1.480

1.504

1.371

1.464

2000

1.551

1.493

1.523

1.382

1.473

1999

1.577

1.522

1.544

1.402

1.502

1998

1.584

1.526

1.552

1.403

1.506

1997

1.601

1.541

1.573

1.411

1.519

1996

1.627

1.564

1.599

1.433

1.549

1995

1.653

1.591

1.632

1.455

1.570

2015

1.000

1.000

1.000

1.000

1.000

2014

1.012