(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years corresponds 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 percent to 20 percent residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall & Swift Valuation Service Guide, "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 2013 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
2012	70%	1.000	70%
2011	45%	0.916	41%
2010	20%	0.843	17%
2009 and older	10%	0.813	8%

 

CATEGORY 2
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	85%	1.000	85%
2011	69%	1.013	70%
2010	52%	1.018	53%
2009	34%	0.974	33%
2008 and older	20%	1.053	21%

 

CATEGORY 3
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	85%	1.000	85%
2011	69%	0.971	67%
2010	52%	0.937	49%
2009	34%	0.920	31%
2008 and older	20%	0.889	18%

 

CATEGORY 4
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	85%	1.000	85%
2011	69%	0.997	69%
2010	52%	0.984	51%
2009	34%	0.973	33%
2008 and older	20%	0.961	19%

 

CATEGORY 5
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	85%	1.000	85%
2011	69%	1.030	71%
2010	52%	1.039	54%
2009	34%	1.044	36%
2008 and older	20%	1.090	22%

 

CATEGORY 6
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	85%	1.000	85%
2011	69%	1.023	71%
2010	52%	1.058	55%
2009	34%	1.078	37%
2008 and older	20%	1.082	22%

 

CATEGORY 7
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	92%	1.000	92%
2011	84%	1.030	87%
2010	76%	1.047	80%
2009	67%	1.041	70%
2008	58%	1.074	62%
2007	49%	1.093	54%
2006	39%	1.117	44%
2005	30%	1.151	35%
2004	24%	1.181	28%
2003 and older	20%	1.186	24%

 

CATEGORY 8
YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2012	92%	1.000	92%
2011	84%	1.029	86%
2010	76%	1.039	79%
2009	67%	1.043	70%
2008	58%	1.109	64%
2007	49%	1.133	56%
2006	39%	1.165	45%
2005	30%	1.203	36%
2004	24%	1.249	30%
2003 and older	20%	1.259	25%

 

 

(3) This rule is effective for tax years beginning after December 31, 2012.