Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.21 - PERSONAL PROPERTY › Subchapter 42.21.1 - Market Value of Personal Property › Rule 42.21.154 - ANNUAL VALUATION OF PERSONAL PROPERTY

Current through Register Vol. 13, July 5, 2024
(1) Except as provided in (5) and (7),
				personal property is valued annually using the cost approach to market value.
				The market value is determined by multiplying a trended depreciation percentage
				times the installed original cost of the property. The department has
				established specific categories of personal property which are provided in ARM
				42.21.155.
(2) Taxable supplies, defined in
				ARM
				42.21.160,
				are valued at 100% of their acquired cost.
(3) Leased or rental equipment that is not
				exempt under
				15-6-202
				or
				15-6-219,
				MCA, is taxable and is valued in the same manner as similar non-leased
				equipment. Property brought into the state that meets the requirements under
				15-6-202,
				MCA, is not taxable unless it is sold or otherwise disposed of in the
				state.
(4) Rental videos that are
				not exempt under
				15-6-202
				or
				15-6-219,
				MCA, are taxable and have a trended percent good of 25% in year one, 15% in
				year two, and 10% each year thereafter.
(5) Locally assessed television cable system
				transmission line is valued at $2,000 per mile; service drops are valued at $25
				each.
(6) All downhole equipment
				installed in oil and gas wells, such as sucker rods, tubing, casing, and
				submersible pumps are exempt from taxation. Downhole equipment not installed in
				an oil or gas well as of the January 1 assessment date is taxable.
(7) For farm machinery and equipment and
				heavy equipment, the department will apply the valuation methods in descending
				order beginning with the method in (a) and proceeding, where necessary, through
				the method in (d) until a market value can be determined for the equipment.
(a) The market value will be the "average
				wholesale" or a comparable category of value as shown in the online version of
				the national agricultural and implement valuation guide known as Equipment
				Watch (Equipment Watch), as of September-October of the year prior to the year
				of assessment. Equipment Watch is adopted and incorporated by reference in
				accordance with
				15-8-111,
				MCA, and may be reviewed in a department field office or purchased from the
				publisher: Informa Business Media, Inc., 1166 Avenue of the Americas, 10th
				Floor, New York, NY 10036.
(b) If
				market value cannot be determined under (a), the department will approximate
				average wholesale value of farm machinery and equipment through application of
				its Farm Machinery Manual dated January 1, 1998, which the department adopts
				and incorporates by reference into this rule. The purpose of the Farm Machinery
				Manual is to function as a resource to approximate average wholesale value of
				farm machinery and equipment. The Farm Machinery Manual may be reviewed in a
				department field office or a copy of the Manual may be requested from the
				Department of Revenue, Property Assessment Division, P.O. Box 8018, Helena, MT
				59604-8018.
(c) For all farm
				machinery and equipment, and heavy equipment that cannot be valued under (a)
				and (b), the department may determine a trended average wholesale value if an
				average wholesale value is available for the same make and model with a
				different year new. The trended average wholesale value will be determined by
				trending the average wholesale value as found in Equipment Watch, for the same
				make and model with a different year new.
(d) If the valuation methods in (a) through
				(c) cannot be used, the owner or applicant must certify to the department the
				year acquired and the acquired price. If the item was acquired through a means
				other than the open marketplace, the owner must provide a reasonable estimate
				of the item's value at the time of acquisition. The reported value will be
				trended and depreciated. If the owner fails to provide this required
				information or in the department's opinion the information provided does not
				accurately reflect the item's fair market value, the department may estimate
				the fair market value of the farm machinery and equipment, or heavy equipment
				item.