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 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 & Swift Valuation Service Guide, "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 2016 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
2015	70%	1.000	70%
2014	45%	0.979	44%
2013	20%	0.966	19%
2012	10%	0.915	9%
Older			5%

CATEGORY 2


YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2015	85%	1.000	85%
2014	69%	1.024	71%
2013	52%	1.022	53%
2012	34%	0.984	33%
2011	23%	0.997	23%
Older			18%

CATEGORY 3


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	85%	1.000	85%
2014	69%	0.995	69%
2013	52%	0.994	52%
2012	34%	0.979	33%
2011	23%	0.950	22%
Older			18%

CATEGORY 4


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	85%	1.000	85%
2014	69%	0.989	68%
2013	52%	0.985	51%
2012	34%	0.984	33%
2011	23%	0.981	23%
Older			18%

CATEGORY 5


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	85%	1.000	85%
2014	69%	1.013	70%
2013	52%	1.021	53%
2012	34%	1.033	35%
2011	23%	1.064	24%
Older			18%

CATEGORY 6


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	85%	1.000	85%
2014	69%	1.016	70%
2013	52%	1.030	54%
2012	34%	1.051	36%
2011	23%	1.088	25%
Older			18%

CATEGORY 7


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	92%	1.000	92%
2014	84%	1.012	85%
2013	76%	1.026	78%
2012	67%	1.043	70%
2011	58%	1.075	62%
2010	49%	1.092	53%
2009	39%	1.086	42%
2008	30%	1.120	34%
2007	24%	1.140	27%
2006	21%	1.165	24%
Older			20%

CATEGORY 8


YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2015	92%	1.000	92%
2014	84%	1.023	86%
2013	76%	1.037	79%
2012	67%	1.042	70%
2011	58%	1.071	62%
2010	49%	1.082	53%
2009	39%	1.087	42%
2008	30%	1.155	35%
2007	24%	1.181	28%
2006	21%	1.214	25%
Older			20%

(3) This rule is effective for tax years beginning after December 31, 2015.

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-219, 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; 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; AMD, 2012 MAR p. 409, Eff. 2/24/12; AMD, 2012 MAR p. 2496, Eff. 12/7/12; AMD, 2013 MAR p. 2316, Eff. 12/13/13; AMD, 2014 MAR p. 2991, Eff. 12/12/14; AMD, 2015 MAR p. 2364, Eff. 12/25/15.