ARM 42.21.113. LEASED AND RENTAL EQUIPMENT

(1) Leased or rental equipment that is leased or rented on an hourly, daily, weekly, semimonthly, or monthly basis, but is not exempt under 15-6-202 or 15-6-219, MCA, will be valued in the following manner: (a) For equipment that has an acquired cost of $0 to $500, the department shall use a four-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 1. YEAR NEW/ACQUIRED TRENDED % GOOD 2016 70% 2015 44% 2014 19% 2013 9% Older 5% (b) For equipment that has an acquired cost of $501 to $1,500, the department shall use a five-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 2. YEAR NEW/ACQUIRED TRENDED % GOOD 2016 85% 2015 70% 2014 54% 2013 35% 2012 23% Older 18% (c) For equipment that has an acquired cost of $1,501 to $5,000, the department shall use a ten-year trended depreciation schedule. The trended schedule will be the same as ARM 42.21.155, category 8. YEAR NEW/ACQUIRED TRENDED % GOOD 2016 92% 2015 85% 2014 78% 2013 70% 2012 61% 2011 53% 2010 42% 2009 33% 2008 28% 2007 25% Older 20% (d) For equipment that has an acquired cost of $5,001 to $15,000, the department shall use the trended depreciation schedule for heavy equipment. The schedule will be the same as ARM 42.21.131. YEAR NEW/ACQUIRED TRENDED % GOOD 2017 80% 2016 65% 2015 60% 2014 50% 2013 47% 2012 44% 2011 41% 2010 39% 2009 37% 2008 35% 2007 33% 2006 30% 2005 29% 2004 29% 2003 27% 2002 24% 2001 22% 2000 22% 1999 21% 1998 and older 20% (e) For rental video tapes and digital video disks, the following trended depreciation schedule will be used: YEAR NEW/ACQUIRED TRENDED % GOOD 2016 25% 2015 15% 2014 and older 10% (2) For all other leased property that is not rented on an hourly, daily, weekly, semimonthly, or monthly basis, the valuation procedures shall be the same as other like personal property. (3) When a special mobile permit (SM plate), as defined in 61-4-101(66), MCA, is purchased for lease or rental equipment, the equipment will be classified and valued the same as other SM equipment in class eight. (4) All leased and rental property not exempt under 15-6-202(4) or 15-6-219(5), MCA, will be assessed and taxed as class eight property. (5) This rule is effective for tax years beginning after December 31, 2016.