ARM 42.20.745. FOREST LAND

(1) Forest land productivity values are calculated by using the formula defined in 15-44-103, MCA. (a) For forest land with an increase in value as a result of the 2009 reappraisal, the department will apply the phase-in percentage as defined in 15-7-111, MCA, and ARM 42.20.503 to the full reappraisal productivity values for forest land for the reappraisal cycle beginning January 1, 2009. (b) For forest lands with a decrease in value as a result of the 2009 reappraisal, the lower value will be fully implemented immediately and will not be phased in. (2) The phase-in formula for each year of the reappraisal cycle is as follows: (a) Change in value = full reappraisal value - value before reappraisal; (b) Phase-in value (year 1) = value before reappraisal + (change in value x .1666); (c) Phase-in value (year 2) = value before reappraisal + (change in value x .3342); (d) Phase-in value (year 3) = value before reappraisal + (change in value x .4998); (e) Phase-in value (year 4) = value before reappraisal + (change in value x .6664); (f) Phase-in value (year 5) = value before reappraisal + (change in value x .8330); and (g) Phase-in value (year 6) = value before reappraisal + (change in value x 1.000). (3) The following examples demonstrate how the phase-in formula calculates the per-acre assessed value for forest land: (a) For tax year 2009: (i) the 2008 full reappraisal value for forest land is $518.63 per-acre; (ii) the full reappraisal value for the same forest land in 2014 is $553.51 per-acre; and (iii) the change in value is $34.88 ($553.51 - $518.63). (b) The 2009 phase-in value per-acre = $518.63 + (34.88 x .1666) = $518.63 + $5.81 or $524.44 per-acre. (c) For tax year 2013: (i) the 2008 full reappraisal value for forest land is $518.63 per-acre; (ii) the full reappraisal value for the same forest land in 2014 is $553.51 per-acre; and (iii) the change in value is $34.88 ($553.51 - $518.63). (d) The 2013 phase-in value = $518.63 + (34.88 x .8330) = $518.63 + $29.06 or $547.69 per-acre.