(1) It is the intention of the department to employ an appraisal methodology for condominiums which is consistent with 15-8-111 and 15-8-511 , MCA. The methodology must provide for a separate assessment of each condominium unit, and allocation of the percentage interest of common elements must meet the market value standard. The methodology must include the consideration, use, and where applicable, the reconciliation of the cost approach, the sales comparison approach, and the income approach to valuation using accepted appraisal treatises and manuals.

(2) The department will employ the following appraisal and assessment methodology for the appraisal of condominiums, except for time-share condominiums.

(a) The preferred approach for the appraisal of the residential condominium units is the sales comparison approach, where comparable sales are available. The common elements of residential condominiums are inherent in the individual unit values when the sales comparison approach is employed. When comparable sales are not available, the cost approach must be used. In that instance, the condominium declaration's percentage of ownership interest required by 15-8-511 , 70-23-301 , and 70-23-403 , MCA, should be used to allocate the value. Allocation of value for each condominium unit will be determined by multiplying the percentage (expressed as a decimal) times the appraised value of the entire condominium project. The common elements are deemed to be inherent in the individual unit's declaration percentage when the cost approach value is determined and allocated as specified in this subsection.

(b) The preferred approach for the appraisal of commercial condominium units is the income approach where reliable condominium income and expense data are available. The common elements of income-producing condominiums are inherent in the individual unit values when the income approach is employed. When reliable income and expense data are not available, the cost approach must be used. In that instance, the condominium declaration's percentage of ownership interest required by 15-8-511 , 70-23-301 , and 70-23-403 , MCA, should be used to allocate the value. Allocation of value for each condominium unit will be determined by multiplying the percentage (expressed as a decimal) times the appraised value of the entire condominium project. The common elements are deemed to be inherent in the individual unit's declaration percentage when the cost approach value is determined and allocated as specified in this subsection.

(3) The department will employ the following appraisal and assessment methodology for the appraisal of time-share condominiums.

(a) The entire condominium project will be appraised using accepted appraisal techniques or methods and, as appropriate, the cost replacement manuals identified in rule. The use of accepted techniques or methods means the consideration, use, and where applicable, the reconciliation of the cost approach, the sales comparison approach, and the income approach to valuation.

(b) Any units in a condominium project which are not owned and operated as time-share condominium units will be valued pursuant to the methodology set forth in (2) (a) or (b) .

(c) The total appraised value for all time-share condominium units comprising a condominium project will be calculated and assessed to the owner of record (time-share association) . Thereafter, it will be incumbent upon the association to allocate its total tax liability among the various parties having interest in the time-share condominiums.