Property factor - Averaging property values

As a general rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the tax commissioner may require or allow averaging by monthly values if such method of averaging is required to properly reflect the average value of the taxpayer's property for the tax period. Averaging by monthly values will generally be applied if substantial fluctuations in the values of the property exist during the tax period or where property is acquired after the beginning of the tax period or disposed of before the end of the tax period. Example: The monthly value of the taxpayer's property was as follows: January $2,000.00 July $15,000.00 February 2,000.00 August 17,000.00 March 3,000.00 September 23,000.00 April 3,500.00 October 25,000.00 May 4,500.00 November 13,000.00 June 10,000.00 December 2,000.00 $25,000.00 $95,000.00 Total $120,000.00 The average value of the taxpayer's property includable in the property factor for the income year is determined as follows: $120,000.00 divided by 12 = $10,000.00 Averaging with respect to rented property is achieved automatically by the method of determining the net annual rental rate of such property as set forth in section 81-03-09-20.