Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.20 - REAL PROPERTY › Subchapter 42.20.1 - Valuation of Real Property › Rule 42.20.106 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to this subchapter:
(1) "Abstraction" also referred to as
				extraction, means a method of estimating land value in which the depreciated
				cost of the improvements on the improved property is estimated and deducted
				from the total sale price to arrive at an estimated sale price for land.
(2) "Allocation" means a method of
				estimating land value in which sales of improved properties are analyzed to
				establish a typical ratio of site value to total property value and this ratio
				is applied to the property being appraised or the comparable sale being
				analyzed.
(3) "Attached" as it
				applies to a manufactured or mobile home means being bolted or cable anchored
				to the permanent foundation in accordance with Housing and Urban Development
				standards.
(4) "Breaks in the
				chain of title" means that the grantor (seller) on the realty transfer
				certificate (RTC) is not the same as the owner of record reflected on the most
				recent property tax record.
(5)
				"Comparable properties" means properties that have similar utility, use,
				function, and are of a similar type as the subject property. Comparable
				properties must be influenced by the same set of economic trends, and physical,
				economic, governmental, and social factors as the subject property. Comparable
				properties must have the potential of a similar use as the subject property.
				For any property that does not fit into this definition, the department will
				rely on the definition of comparable property contained in
				15-1-101,
				MCA.
(a) Within the definition of comparable
				property, the following types of property are considered comparable:
(i) single-family residences with ancillary
				improvements are comparable to other single-family residences with ancillary
				improvements;
(ii) multifamily
				residences are comparable to other multifamily residences;
(iii) mobile homes are comparable to other
				mobile homes;
(iv) residential
				city and town lots are comparable to other residential city and town lots;
(v) commercial city and town lots
				are comparable to other commercial city and town lots;
(vi) residential tract land is comparable to
				other residential tract land;
(vii) commercial tract land is comparable to
				other commercial tract land;
(viii) improvements and outbuildings
				necessary to the operation of a qualified agricultural property are comparable
				to other improvements and outbuildings on qualified agricultural properties;
(ix) one-acre sites beneath
				improvements on land classified as nonqualified agricultural or forestland are
				comparable to residential tract land;
(x) condominiums are comparable to other
				condominiums;
(xi) townhomes are
				comparable to other townhomes;
(xii) industrial improvements are comparable
				to other industrial improvements;
(xiii) industrial land is comparable to other
				industrial land; and
(xiv)
				manufactured homes are comparable to other manufactured homes.