Rule 42.18.123 - FARM MACHINERY AND EQUIPMENT(1) The department applies the valuation methods in sequential order as shown in (2) through (8).(2) The market value for farm machinery and equipment shall be the "average wholesale" value as shown in the Iron Solutions, Northwest Region Official Guide, Fall Edition, for the year previous to the year of the assessment. This guide may be reviewed in the department or purchased from the publisher: North American Equipment Dealers Association, 1195 Smizer Mill Road, Fenton, Missouri 63026-3480.(3) For all farm machinery and equipment that cannot be valued under (2), the department has developed a manual to value the equipment. This manual will be used in conjunction with the depreciation schedule in (5) when valuing farm equipment and machinery. The purpose of the manual developed by the department is to arrive at values which approximate average wholesale value. The department's farm machinery manual is incorporated by reference. Customers can contact the department to obtain copies.(4) For all farm machinery and equipment which cannot be valued under (2) and (3): (a) the department shall try to ascertain the original FOB (free on board value) through old farm machinery and equipment valuation guidebooks; and(b) if an original FOB cannot be ascertained, the department may use trending to determine the FOB.(5) The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (8) to arrive at a value that approximates average wholesale value.(6) A trended average wholesale value shall be applied to equipment if: (a) the equipment cannot be valued under (2) but an average wholesale value is available for the same make and model with a different year new; and(b) the equipment cannot be valued under (4) or the value as calculated under (4) results in a higher value being placed on a piece of farm equipment than the last year listed in the guide cited in (2) for the same make and model. The trended average wholesale value for farm equipment shall be ascertained by trending the average wholesale value as found in the guide in (2), for the same make and model with a different year new. The trend factors are the same as those mentioned in (4).(7) If the methods mentioned in (2) through (5) cannot be used to ascertain average wholesale value for farm machinery and equipment, the owner or applicant must certify to the department the year acquired and the acquired price before that value can be applied to the schedule in (8). (8) The trended depreciation schedule referred to in (2) through (6) is listed below and shall be used for tax year 2017. The schedule is derived by using the guide listed in (2) as the data base. The values derived through use of the trended depreciation schedule will approximate average wholesale value. YEAR NEW/ACQUIRED | TRENDED % GOOD WHOLESALE |
2017 | 80% |
2016 | 75% |
2015 | 65% |
2014 | 59% |
2013 | 52% |
2012 | 49% |
2011 | 45% |
2010 | 43% |
2009 | 39% |
2008 | 40% |
2007 | 40% |
2006 | 37% |
2005 | 34% |
2004 | 33% |
2003 | 30% |
2002 | 25% |
2001 and older | 20% |
(9) If a piece of farm machinery or equipment's market value is below $100, it is exempt from taxation.(10) This rule is effective for tax years beginning after December 31, 2016.Mont. Admin. r. 42.18.123
NEW, 1990 MAR p. 594, Eff. 3/30/90; AMD, 1992 MAR p. 2078, Eff. 9/11/92; AMD, 1993 MAR p. 160, Eff. 1/29/93; AMD, 1993 MAR p. 2127, Eff. 9/17/93; REP, 1996 MAR p. 3149, Eff. 12/6/96; AMD, 2016 MAR p. 2340, Eff. 1/1/2017AUTH: 15-1-201, MCA; IMP: 15-6-135, 15-6-138, 15-6-207, 15-6-219, MCA