(1) Each year on the anniversary date of the registration of a light vehicle, the department will calculate the vehicle's depreciated value for taxation using its MSRP and the appropriate factor for vehicle age and type, as provided in 61-3-503 , MCA.

(2) The department will depreciate light vehicles that are more than 16 years of age by multiplying .90 by the vehicle's depreciated value for the preceding registration period, as calculated in accordance with 61-3-503 (2) , MCA, until the vehicle arrives at a depreciated value of $500.00 or less, in which case its depreciated value shall be deemed to be $500.00 thereafter.