(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years correspond 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% to 20% residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall and Swift Publication, "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 2010 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
2009	70%	1.000	70%
2008	45%	0.932	42%
2007	20%	0.793	16%
2006 and older	10%	0.755	8%
CATEGORY 2
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	85%	1.000	85%
2008	69%	1.089	75%
2007	52%	1.112	58%
2006	34%	1.106	38%
2005 and older	20%	1.113	22%

 

CATEGORY 3
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	85%	1.000	85%
2008	69%	0.966	67%
2007	52%	0.873	45%
2006	34%	0.876	30%
2005 and older	20%	0.865	17%

 

CATEGORY 4
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	85%	1.000	85%
2008	69%	0.988	68%
2007	52%	0.966	50%
2006	34%	0.955	32%
2005 and older	20%	0.943	19%

 

CATEGORY 5
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	85%	1.000	85%
2008	69%	1.043	72%
2007	52%	1.057	55%
2006	34%	1.078	37%
2005 and older	20%	1.108	22%

 

CATEGORY 6
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	85%	1.000	85%
2008	69%	1.026	71%
2007	52%	1.048	54%
2006	34%	1.085	37%
2005 and older	20%	1.159	23%

 

CATEGORY 7
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	92%	1.000	92%
2008	84%	1.031	87%
2007	76%	1.050	80%
2006	67%	1.072	72%
2005	58%	1.105	64%
2004	49%	1.134	56%
2003	39%	1.139	44%
2002	30%	1.138	34%
2001	24%	1.138	27%
2000 and older	20%	1.150	23%

 

 

 

CATEGORY 8
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2009	92%	1.000	92%
2008	84%	1.063	89%
2007	76%	1.086	83%
2006	67%	1.116	75%
2005	58%	1.152	67%
2004	49%	1.197	59%
2003	39%	1.206	47%
2002	30%	1.217	37%
2001	24%	1.225	29%
2000 and older	20%	1.239	25%

 

(3) This rule is effective for tax years beginning after December 31, 2009.