Administrative Rules of the State of Montana

(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years correspond to the useful life of the property taking into account physical obsolescence. The trended depreciation schedules reflect the remaining life of the property over the term of years assigned with a 5% to 20% residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall and Swift Publication, "Fixtures and Equipment Table." The four-year table was derived from consultation with industry representatives. "Remaining Life" is a form of depreciation.

(2) The trended depreciation schedules for tax year 2008 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/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	70%	1.000	70%
2006	45%	0.949	43%
2005	20%	0.906	18%
2004 and older	10%	0.879	9%

CATEGORY 2

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	85%	1.000	85%
2006	69%	0.997	69%
2005	52%	1.003	52%
2004	34%	1.015	34%
2003 and older	20%	1.023	20%

CATEGORY 3

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	85%	1.000	85%
2006	69%	1.002	69%
2005	52%	0.990	51%
2004	34%	0.969	33%
2003 and older	20%	0.950	19%

CATEGORY 4

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	85%	1.000	85%
2006	69%	0.988	68%
2005	52%	0.975	51%
2004	34%	0.947	32%
2003 and older	20%	0.933	19%

CATEGORY 5

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	85%	1.000	85%
2006	69%	1.018	70%
2005	52%	1.047	54%
2004	34%	1.073	36%
2003 and older	20%	1.075	21%

CATEGORY 6

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	85%	1.000	85%
2006	69%	1.033	71%
2005	52%	1.104	57%
2004	34%	1.150	39%
2003 and older	20%	1.149	23%

CATEGORY 7

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	92%	1.000	92%
2006	84%	1.022	86%
2005	76%	1.053	80%
2004	67%	1.081	72%
2003	58%	1.085	63%
2002	49%	1.084	53%
2001	39%	1.084	42%
2000	30%	1.095	33%
1999	24%	1.104	26%
1998 and older	20%	1.113	22%

CATEGORY 8

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2007	92%	1.000	92%
2006	84%	1.028	86%
2005	76%	1.061	81%
2004	67%	1.101	74%
2003	58%	1.110	64%
2002	49%	1.120	55%
2001	39%	1.128	44%
2000	30%	1.140	34%
1999	24%	1.154	28%
1998 and older	20%	1.159	23%

(3) This rule is effective for tax years beginning after December 31, 2007.

History: 15-1-201, 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, 1982 MAR p. 1052, Eff. 5/14/82; AMD, 1985 MAR p. 2032, Eff. 12/27/85; 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, 1999 MAR p. 154, 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; AMD, 2007 MAR p. 1826, Eff. 11/9/07.