ARM 42.21.138. OIL AND GAS FIELD MACHINERY AND EQUIPMENT

(1) Oil and gas field machinery and equipment shall be valued using the cost approach to market value. The taxpayer must provide to the department the acquired cost, the year acquired, and an itemized description of each piece of machinery and equipment. The acquired cost will be trended to current replacement cost and then depreciated according to the schedule mentioned in (2). (2) The department shall prepare a 15-year trended depreciation schedule for oil and gas field machinery and equipment. Trend factors and depreciation factors published in the Marshall & Swift Valuation Service Guide will be used to develop the trended depreciation schedules. The trend factors shall be the most recent available. (3) The trended depreciation schedule referred to in (1) and (2) is listed below and shall be used for tax year 2015. YEAR NEW/ ACQUIRED % GOOD TREND FACTOR TRENDED % GOOD 2015 100% 1.000 100% 2014 95% 1.000 95% 2013 90% 1.009 91% 2012 85% 1.010 86% 2011 79% 1.038 82% 2010 73% 1.066 78% 2009 68% 1.051 71% 2008 62% 1.088 67% 2007 55% 1.137 63% 2006 49% 1.204 59% 2005 43% 1.265 54% 2004 37% 1.372 51% 2003 31% 1.420 44% 2002 26% 1.449 38% 2001 23% 1.457 34% 2000 and older 21% 1.471 31% (4) All downhole equipment in oil and gas wells is exempt from taxation. Downhole equipment includes: (a) sucker rods; (b) tubing; (c) casing; and (d) submersible pumps. (5) Downhole equipment which is not in an oil or gas well as of the assessment date, January 1, each year shall be taxed as class eight property. (6) This rule is effective for tax years beginning after December 31, 2014.