42.20.454    CONSIDERATION OF SALES PRICE AS AN INDICATION OF MARKET VALUE

(1) When considering any objection to the appraisal of property, the department may consider the actual selling price of the property as evidence of the market value of the property. For the actual selling price to be considered, a taxpayer or the taxpayer's agent must:

(a) submit a completed Request for Informal Classification and Appraisal Review, Form AB-26, as set forth in ARM 42.20.173, to the local department office in the county where the property is located;

(b) submit an accurately completed Realty Transfer Certificate;

(c) complete and sign a sales verification form that includes the sales price of the property;

(d) provide a signed affidavit completed by at least one party or person who is not the buyer or seller and that identifies the conditions, terms, and sales price of the property;

(e) provide an executed buy/sell agreement; and

(f) provide evidence of two comparable sales of similar property in the same general geographic area where the taxpayer's property is located. The property sales must have occurred within six months of the valuation date adopted by the department in its reappraisal plan administrative rules, as set forth in ARM Title 42, chapter 18. The department will:

(i) use its sales records to identify the sale prices and determine if the sales were valid, arm's-length sales; and

(ii) permit taxpayers to examine the sales information for the comparable property if they agree to keep the information confidential.

(2) For the actual selling price of the property to be considered, the department must:

(a) analyze and maintain the information and requirements in (1)(a) through (f) as a part of the file supporting the value placed on the property for tax purposes;

(b) verify the subject sale is a valid arm's-length transaction as defined in 15-8-111, MCA;

(c) verify the comparable sales are valid arm's-length transactions as defined in 15-8-111, MCA;

(d) adjust the actual selling price of the property to a value that is consistent with the valuation date adopted by the department in its reappraisal plan administrative rules, located in ARM Title 42, chapter 18; and

(e) adjust the sales price of the property to account for changes in market conditions that may have occurred between the time of sale and the valuation date.

(3) After making a determination regarding use of the adjusted selling price as an indication of market value for tax purposes, the department shall respond in writing to the taxpayer stating clearly the reasons for accepting or rejecting the use of the sales price and, if appropriate, what adjustments were made to the actual selling price and why the adjustments were made.

(4) If the appraised value is adjusted by the department or the tax appeal board and the department files no further appeal within the time period allowed by law, the adjusted value becomes the value for assessment and taxation purposes until such time as changing circumstances with respect to the property requires a new valuation and assessment, or upon an updated valuation occurring in subsequent property valuation cycles.

 

History: 15-1-201, MCA; IMP, 15-7-102, 15-7-111, 15-8-111, MCA; NEW, 1991 MAR p. 742, Eff. 5/17/91; AMD, 1992 MAR p. 1763, Eff. 8/14/92; AMD, 1993 MAR p. 3060, Eff. 12/24/93; AMD, 1999 MAR p. 309, Eff. 2/12/99; AMD, 2002 MAR p. 3723, Eff. 12/27/02; AMD, 2014 MAR p. 2994, Eff. 12/12/14; AMD, 2015 MAR p. 2350, Eff. 1/1/16; AMD, 2017 MAR p. 2088, Eff. 11/10/17.