(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years corresponds 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 percent to 20 percent 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 2011 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
2010	70%	1.000	70%
2009	45%	0.963	43%
2008	20%	0.897	18%
2007 and older	10%	0.763	8%

 

CATEGORY 2

 

YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2010	85%	1.000	85%
2009	69%	0.957	66%
2008	52%	1.035	54%
2007	34%	1.058	36%
2006 and older	20%	1.052	21%

 

CATEGORY 3

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	85%	1.000	85%
2009	69%	0.982	68%
2008	52%	0.949	49%
2007	34%	0.857	29%
2006 and older	20%	0.860	17%

 

CATEGORY 4

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	85%	1.000	85%
2009	69%	0.990	68%
2008	52%	0.977	51%
2007	34%	0.956	33%
2006 and older	20%	0.945	19%

 

CATEGORY 5

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	85%	1.000	85%
2009	69%	1.006	69%
2008	52%	1.049	55%
2007	34%	1.064	36%
2006 and older	20%	1.084	22%

 

CATEGORY 6

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	85%	1.000	85%
2009	69%	1.013	70%
2008	52%	1.017	53%
2007	34%	1.048	36%
2006 and older	20%	1.072	21%

 

CATEGORY 7

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	92%	1.000	92%
2009	84%	0.995	84%
2008	76%	1.026	78%
2007	67%	1.045	70%
2006	58%	1.067	62%
2005	49%	1.100	54%
2004	39%	1.129	44%
2003	30%	1.133	34%
2002	24%	1.132	27%
2001 and older	20%	1.132	23%

 

CATEGORY 8

 

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2010	92%	1.000	92%
2009	84%	1.005	84%
2008	76%	1.069	81%
2007	67%	1.092	73%
2006	58%	1.123	65%
2005	49%	1.159	57%
2004	39%	1.203	47%
2003	30%	1.213	36%
2002	24%	1.224	29%
2001	20%	1.232	25%

 

(3) This rule is effective for tax years beginning after December 31, 2010.