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 2017 70% 2016 44% 2015 19% 2014 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 2017 85% 2016 69% 2015 53% 2014 35% 2013 24% 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 2017 92% 2016 85% 2015 77% 2014 70% 2013 61% 2012 52% 2011 42% 2010 33% 2009 26% 2008 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 2018 80% 2017 52% 2016 50% 2015 48% 2014 46% 2013 43% 2012 40% 2011 38% 2010 36% 2009 36% 2008 34% 2007 31% 2006 29% 2005 28% 2004 27% 2003 27% 2002 25% 2001 23% 2000 22% 1999 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 2017 25% 2016 15% 2015 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, 2017.