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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, weekly, semimonthly, or monthly basis, but is not exempt under 15-6-219(5) or 15-6-202(4), 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
2009
70%
2008
42%
2007
16%
2006 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
2009
85%
2008
75%
2007
58%
2006
38%
2005 and older
22%

 

(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
2009
92%
2008
89%
2007
83%
2006
75%
2005
67%
2004
59%
2003
47%
2002
37%
2001
29%
2000 and older
25%

 

(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
2010
80%
2009
65%
2008
58%
2007
56%
2006
50%
2005
44%
2004
41%
2003
38%
2002
36%
2001
36%
2000
29%
1999
25%
1998
24%
1997
24%
1996
25%
1995
22%
1994
21%
1993
22%
1992
21%
1991 and older
21%

 

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

 
YEAR NEW/ACQUIRED
TRENDED % GOOD
2009
25%
2008
15%
2007 and older
10%

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

(3) When a special mobile permit (SM plate), as defined in 61-4-101(66), 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 15-6-219(5) or 15-6-202(4), MCA, will be assessed and taxed as class eight property.

(5) This rule is effective for tax years beginning after December 31, 2009.

 

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; AMD, 2007 MAR p. 1826, Eff. 11/9/07; AMD, 2008 MAR p. 2561, Eff. 11/27/08; AMD, 2009 MAR p. 2497, Eff. 12/25/09.

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