ARM 42.21.123. FARM MACHINERY AND EQUIPMENT

(1) 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. (2) For all farm machinery and equipment that cannot be valued under (1) , 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 hereby incorporated by reference. Customers can contact the department to obtain copies. (3) For all farm machinery and equipment which cannot be valued under (1) and (2) , the department shall try to ascertain the original FOB through old farm machinery and equipment valuation guidebooks. If an original FOB cannot be ascertained, the department may use trending to determine the FOB. The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (5) to arrive at a value that approximates average wholesale value. (4) If the methods mentioned in (1) through (3) 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 (5) . (5) The trended depreciation schedule referred to in (2) through (4) is listed below and shall be used for tax year 2007. The schedule is derived by using the guidebook listed in (1) as the data base. The values derived through use of the trended depreciation schedule will approximate average wholesale value. TRENDED % GOOD YEAR NEW/ACQUIRED AVERAGE WHOLESALE 2007 80% 2006 70% 2005 65% 2004 65% 2003 62% 2002 55% 2001 51% 2000 46% 1999 42% 1998 40% 1997 38% 1996 35% 1995 35% 1994 30% 1993 28% 1992 26% 1991 26% 1990 and older 24% (6) If a piece of farm machinery or equipment's market value is below $100, it is exempt from taxation. (7) This rule is effective for tax years beginning after December 31, 2006.