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42.21.113    LEASED AND RENTAL EQUIPMENT

(1) Leased or rental equipment that is leased or rented on an hourly, daily, or weekly basis, but is not exempt under 15-6-201(1) (cc) , 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

2006

70%

2005

43%

2004

19%

2003 and older

8%

 

(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

2006

85%

2005

69%

2004

53%

2003

35%

2002 and older

20%

 

(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

2006

92%

2005

87%

2004

81%

2003

72%

2002

63%

2001

54%

2000

43%

1999

34%

1998

27%

1997 and older

23%

 

(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

2007

80%

2006

65%

2005

58%

2004

54%

2003

49%

2002

44%

2001

40%

2000

36%

1999

32%

1998

31%

1997

29%

1996

28%

1995

27%

1994

26%

1993

26%

1992

25%

1991

24%

1990

24%

1989

23%

1988 and older

23%

 

(e) For rental video tapes the following schedule will be used:

 

YEAR NEW/ACQUIRED

TRENDED % GOOD

2006

25%

2005

15%

2004 and older

10%

 

(2) For all other leased property that is not rented on an hourly, daily, or weekly basis, the valuation procedures shall be the same as other like personal property.

(3) When a special mobile permit (SM plate) , as defined in 61-1-104, MCA, is purchased for lease or rental equipment, the equipment will be classified and valued the same as other SM equipment in class eight.

(4) All leased and rental property not exempt under 15-6-201(1) (cc) , MCA, will be assessed and taxed as class eight property.

(5) This rule is effective for tax years beginning after December 31, 2006.

History: 15-1-201, 15-23-108, MCA; IMP, 15-6-135, 15-6-138, 15-6-207, 15-6-219, 15-24-921, 15-24-922, 15-24-925, MCA; NEW, 1984 MAR p. 2036, Eff. 12/28/84; 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. 1525, Eff. 6/12/98; 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.

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