(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 2014 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
2013	70%	1.000	70%
2012	45%	0.953	43%
2011	20%	0.879	18%
2010 and older	10%	0.808	8%

 

CATEGORY 2

YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2013	85%	1.000	85%
2012	69%	0.962	66%
2011	52%	0.975	51%
2010	34%	0.979	33%
2009 and older	23%	0.937	22%

 

CATEGORY 3

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	85%	1.000	85%
2012	69%	0.987	68%
2011	52%	0.959	50%
2010	34%	0.925	31%
2009 and older	23%	0.909	21%

 

CATEGORY 4

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	85%	1.000	85%
2012	69%	0.999	69%
2011	52%	0.995	52%
2010	34%	0.983	33%
2009 and older	23%	0.972	22%

 

CATEGORY 5

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	85%	1.000	85%
2012	69%	1.011	70%
2011	52%	1.042	54%
2010	34%	1.051	36%
2009 and older	23%	1.056	24%

 

CATEGORY 6

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	85%	1.000	85%
2012	69%	1.016	70%
2011	52%	1.044	54%
2010	34%	1.080	37%
2009 and older	23%	1.100	25%

CATEGORY 7

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	92%	1.000	92%
2012	84%	1.017	85%
2011	76%	1.047	80%
2010	67%	1.064	71%
2009	58%	1.058	61%
2008	49%	1.092	53%
2007	39%	1.111	43%
2006	30%	1.135	34%
2005	24%	1.170	28%
2004 and older	21%	1.201	25%

 

CATEGORY 8

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2013	92%	1.000	92%
2012	84%	1.004	84%
2011	76%	1.033	78%
2010	67%	1.043	70%
2009	58%	1.047	61%
2008	49%	1.114	55%
2007	39%	1.138	44%
2006	30%	1.170	35%
2005	24%	1.208	29%
2004 and older	21%	1.254	26%

 

(3) This rule is effective for tax years beginning after December 31, 2013.