ARM 42.19.404

42.19.503 INFLATION ADJUSTMENT FOR QUALIFIED DISABLED VETERAN PROPERTY TAX EXEMPTION PROGRAM (1) Section 15-6-211 , MCA, provides a property tax exemption or partial exemption to qualified disabled veterans. Section 15-6-211 , MCA, also requires the department to annually adjust the income schedules used to determine the eligibility and the amount of exemption to account for the effects of inflation. (2) The calculation of the inflation adjustment shall be made on a yearly basis as follows: (a) Section 15-6-211 , MCA, specifies that the implicit price deflator for personal consumption expenditures (PCE) , published quarterly in the survey of current business by the Bureau of Economic Analysis of the U.S. Department of Commerce, is to be used in the calculation of the inflation factor. (b) The formula for the calculation of the inflation factor is as follows: PCE (t-1) IF t = --------- PCE t o where: IF t equals the inflation factor for property tax year t; PCE (t-1) is the implicit price deflator for personal consumption expenditures for the second quarter of the year prior to the tax year in question; PCE t o is the implicit price deflator for personal consumption expenditures for the second quarter of 2002. (c) The inflation factor, calculated per (2) (b) , is used to annually adjust the base-year income schedules for the effects of inflation. Each income figure in the base-year table is multiplied by the inflation factor calculated for the tax year in question in order to update the table. The product is then rounded to the nearest whole dollar amount. The base-year income schedule follows: ----------- Base Income Schedules ------------- Single Person Married Couple Surviving Spouse Percentage Multiplier $ 0 - 30,000 $ 0 - 36,000 $ 0 - 25,000 0% 30,001 - 33,000 36,001 - 39,000 25,001 - 28,000 20% 33,001 - 36,000 39,001 - 42,000 28,001 - 31,000 30% 36,001 - 39,000 42,001 - 45,000 31,001 - 34,000 50%