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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 version of the Green Guide known as Equipment Watch, as of January 1 of the year of assessment. This 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 Valuation Service Manual for the year of assessment. The Marshall Valuation Service Manual 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) A trended quick sale value shall be applied to equipment if:

(a) the equipment cannot be valued under (1) but 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 (2) or the value as calculated under (2) is higher than the most recently published previous year quick sale for the same make, model and year new. The trended quick sale value for heavy equipment shall be ascertained by trending the quick sale as found in the guide in (1), for the same make and model with a different year new. The trend factors are the same as those mentioned in (2).

(4) The wholesale market value of heavy equipment that cannot be valued under (1), (2), or (3) shall be the acquired cost, as certified by the owner or applicant to the department as applied to the depreciation schedule in (5). The department may require proof from the taxpayer to certify the accuracy of the acquired cost.

(5) The trended depreciation schedule referred to in (2), (3), and (4) is listed below and shall be used for tax year 2011. The values derived through the use of these percentages approximate the "quick sale" values as calculated in the guidebooks listed in (1).

 

HEAVY EQUIPMENT TRENDED DEPRECIATION SCHEDULE

 

YEAR NEW/ACQUIRED
TRENDED % GOOD
WHOLESALE
2011
80%
2010
58%
2009
52%
2008
43%
2007
41%
2006
34%
2005
31%
2004
30%
2003
30%
2002
26%
2001
25%
2000
22%
1999
18%
1998
20%
1997
19%
1996
19%
1995
15%
1994
16%
1993
17%
1992
16%

 

(6) This rule is effective for tax years beginning after December 31, 2010, and applies to all heavy equipment.

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; Eff. 12/31/72; AMD, Eff. 1/5/74; AMD, 1980 MAR p. 1727, Eff. 6/27/80; AMD, 1981 MAR p. 93, Eff. 1/30/81; AMD, 1982 MAR p. 102, Eff. 1/29/82; AMD, 1982 MAR p. 2153, Eff. 12/17/82; AMD, 1983 MAR p. 1266, Eff. 9/16/83; 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. 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; AMD, 2010 MAR p. 3022, Eff. 12/24/10.

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