Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.20 - REAL PROPERTY › Subchapter 42.20.9 - Privately Owned Sanitary Landfills › Rule 42.20.901 - LANDFILL VALUATION DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to terms contained in this
				  subchapter:
(1) "Appraisal period"
				means the reappraisal cycle provided for in
				15-7-111, MCA.
(2) "Compaction ratio" refers to the ratio
				that expresses the relationship of the number of tons that will fill one cubic
				yard of capacity. For example, if the compaction ratio is.70, then 70% of one
				ton, 1,400 pounds of waste, can be deposited into one cubic yard of capacity.
				Compaction ratios for landfills are typically in the.50 to.70 range. Unless the
				landfill owner or its agent can provide by a preponderance of evidence to the
				contrary, the compaction ratio will be.70.
(3) "Cover materials" means at least six
				inches of dirt or a dirt-like substance that is applied to the exposed garbage
				each day and is not removed. It does not mean a tarp or tarp-like
				product.
(4) "Discount rate" is a
				rate expressed in a percentage that is used to discount the annual royalty
				payments over the projection period to a present value. The majority of the
				discount rates for landfills are in the 20% to 30% range. Unless the landfill
				owner or its agent can provide by a preponderance of evidence to the contrary,
				a discount rate of 20% will be used.
(5) "Improvements" means buildings, scales,
				and other structures permanently affixed to the ground necessary to operate a
				landfill.
(6) "Other property
				related income" means landfill income generated by the property, such as
				land/dirt farms and methane gas collection.
(7) "Reversionary value" means the market
				value of the landfill after it is closed.
(8) "Royalty rate" means a rate applied to
				the annual gross receipts that results in the estimated royalty payment for
				each year of the projection period. Unless the landfill owner or its agent or
				the department can provide by a preponderance of evidence to the contrary, the
				royalty rate will be 10%.
(9)
				"Royalty method" means a discounted cash flow analysis based on the premise
				that a landowner would lease land to a licensed landfill operator for a set
				percentage of the tipping fees received for dumping at the site. The present
				value of the annual royalty rate of payments must be estimated over the
				projected economic life of the licensed landfill, plus the present value of the
				landfill after it is closed.
(10)
				"Licensed Landfill" means an area of land or an excavation where wastes are
				placed for permanent disposal, and that is not a land application unit, surface
				impoundment, injection well, or waste pile. Licensed landfills are subject to
				federal regulations of the Environmental Protection Agency (EPA) and law as
				"permitted landfills" under Subtitle D of the Resource Conservation and
				Recovery Act of 1976 (RCRA) and state regulations through the Department of
				Environmental Quality (DEQ).
(11)
				"Tipping fees" are the dollar charge per ton for dumping municipal solid waste
				and other approved waste at the licensed landfill.
15-1-201,
					 15-7-111, MCA; IMP,
					 15-6-134,
					 15-7-111,
					 15-8-111,
					 MCA;