BEFORE THE Department of REVENUE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 42.21.113, 42.21.123, 42.21.131, 42.21.137, 42.21.138, 42.21.139, 42.21.140, 42.21.151, 42.21.153, 42.21.155, and 42.22.1311 pertaining to the trended depreciation schedules for valuing property

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NOTICE OF AMENDMENT

 

TO: All Concerned Persons

 

1. On October 29, 2015, the Department of Revenue published MAR Notice No. 42-2-946 pertaining to the public hearing on the proposed amendment of the above-stated rules at page 1866 of the 2015 Montana Administrative Register, Issue Number 20.

 

2. On November 19, 2015, a public hearing was held to consider the proposed amendment. No members of the public appeared to testify at the hearing and no written comments were received.

 

3. The department amends ARM 42.21.113, 42.21.131, 42.21.137, 42.21.138, 42.21.139, 42.21.140, 42.21.151, 42.21.153, 42.21.155, and 42.22.1311 as proposed.

 

4. Upon determination that a portion of the language as proposed to be changed represented a statutorily required valuation source, the department amends ARM 42.21.123, as proposed, but with the following changes to restore the required language, new matter underlined, deleted matter interlined:

 

42.21.123 FARM MACHINERY AND EQUIPMENT (1) remains as proposed.

(2) The market value for farm machinery and equipment shall be the most current quick sale as shown in the online version of the Green Guide known as the Equipment Watch, as of October of the year prior to the year of the appraisal. This online guide may be reviewed in the department or purchased from the publisher at equipmentwatch.com or Dataquest, 1290 Ridder Park Drive, San Jose, California 95131. "average wholesale" value as shown in the Iron Solutions, Northwest Region Official Guide, Fall Edition, for the year previous to the year of the assessment. This guide may be reviewed in the department or purchased from the publisher: North American Equipment Dealers Association, 1195 Smizer Mill Road, Fenton, Missouri 63026-3480.

(3) For all farm machinery and equipment that cannot be valued under (2), the department has developed a manual to value the equipment. This manual will be used in conjunction with the depreciation schedule in (5) when valuing farm equipment and machinery. The purpose of the manual developed by the department is to arrive at values which approximate quick sale average wholesale value. The department's farm machinery manual is hereby incorporated by reference. Customers can contact the department to obtain copies.

(4) and (5) remain as proposed.

(6) A trended quick sale average wholesale value shall be applied to equipment if:

(a) the equipment cannot be valued under (2) but a quick sale an average wholesale value is available for the same make and model with a different year new; and

(b) the equipment cannot be valued under (4) or the value as calculated under (4) results in a higher value being placed on a piece of farm equipment than the last year listed in the guide cited in (2) for the same make and model. The trended quick sale average wholesale value for farm equipment shall be ascertained by trending the quick sale average wholesale value as found in the guide in (2), for the same make and model with a different year new. The trend factors are the same as those mentioned in (4).

(7) If the methods mentioned in (2) through (5) cannot be used to ascertain quick sale average wholesale value for farm machinery and equipment, the owner or applicant must certify to the department the year acquired and the acquired price before that value can be applied to the schedule in (8).

(8) The trended depreciation schedule referred to in (2) through (6) is listed below and shall be used for tax year 2016. The schedule is derived by using the guide listed in (2) as the data base. The values derived through use of the trended depreciation schedule will approximate quick sale average wholesale value.

 

YEAR NEW/ACQUIRED	TRENDED % GOOD WHOLESALE
2016	80%
2015	54% 75%
2014	48% 66%
2013	47% 61%
2012	46% 55%
2011	44% 53%
2010	43% 51%
2009	41% 44%
2008	40% 44%
2007	39% 45%
2006	38% 40%
2005	38% 38%
2004	38% 36%
2003	36% 32%
2002	35% 28%
2001	34% 25%
2000 and older	30% 20%

 

(9) and (10) remain as proposed.

 

 

 

 

/s/ Laurie Logan                                    /s/ Mike Kadas

Laurie Logan                                         Mike Kadas

Rule Reviewer                                       Director of Revenue

 

         

Certified to the Secretary of State December 14, 2015