BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

  

In the matter of the amendment of ARM 42.20.107, relating to the valuation methods for commercial properties

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NOTICE OF AMENDMENT

 

TO:  All Concerned Persons

 

1.  On October 28, 2010, the department published MAR Notice No. 42-2-854 regarding the proposed amendment of the above-stated rule at page 2544 of the 2010 Montana Administrative Register, issue no. 20.

 

2.  A public hearing was held on November 17, 2010, to consider the proposed amendment.  Ms. Mary Whittinghill, President of the Montana Taxpayers Association, appeared and testified at the hearing.  Oral testimony received at the hearing is summarized as follows along with the response of the department.

 

COMMENT NO. 1:  Ms. Whittinghill asked for clarification on 15-8-111, MCA.  Specifically, she asks why the department feels it is necessary to list one section out of their rules and refer to one section of the IAAO Standards, when these standards are used throughout.  She questions why someone wouldn't be able to locate answers to their questions by looking at the statute referencing market value standard along with the previously adopted Montana Appraisal Manual.  Would they now need to go to the rules for those answers?

 

RESPONSE NO. 1:  The department appreciates Ms. Whittinghill's comments on this rulemaking action.  This rule amendment is being adopted in response to discussions with, and a commitment made to, the legislative Revenue and Transportation Interim Committee.  It addresses the department's decision-making practices with regard to the specific issue of the choice of methods for valuing each commercial property.  We are amending ARM 42.20.107 in order to make clear that the department follows the IAAO appraisal standards in choosing among alternative appraisal methods.

 

3.  The department adopts ARM 42.20.107 as proposed.

 

            4.  An electronic copy of this notice is available on the department's web site at www.revenue.mt.gov.  Locate "Legal Resources" in the left hand column, select the "Rules" link and view the options under the "Notice of Proposed Rulemaking" heading.  The department strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

 

/s/ Cleo Anderson                                         /s/ Dan R. Bucks

CLEO ANDERSON                                      DAN R. BUCKS

Rule Reviewer                                               Director of Revenue

 

Certified to Secretary of State February 28, 2011