Administrative Rules of the State of Montana

(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years correspond to the useful life of the property taking into account physical obsolescence. The trended depreciation schedules reflect the remaining life of the property over the term of years assigned with a 5% to 20% residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall and Swift Publication, "Fixtures and Equipment Table." The four-year table was derived from consultation with industry representatives. "Remaining Life" is a form of depreciation.

(2) The trended depreciation schedules for tax year 2007 are listed below. The categories are explained in ARM 42.21.156. The trend factors are derived according to ARM 42.21.156 and 42.21.157.

CATEGORY 1

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	70%	1.000	70%
2005	45%	0.955	43%
2004	20%	0.927	19%
2003 and older	10%	0.832	8%

CATEGORY 2

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	85%	1.000	85%
2005	69%	1.007	69%
2004	52%	1.018	53%
2003	34%	1.027	35%
2002 and older	20%	1.019	20%

CATEGORY 3

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	85%	1.000	85%
2005	69%	0.980	68%
2004	52%	0.960	50%
2003	34%	0.940	32%
2002 and older	20%	0.929	19%

CATEGORY 4

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	85%	1.000	85%
2005	69%	0.987	68%
2004	52%	0.958	50%
2003	34%	0.944	332
2002 and older	20%	0.945	19%

CATEGORY 5

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	85%	1.000	85%
2005	69%	1.029	71%
2004	52%	1.054	55%
2003	34%	1.056	36%
2002 and older	20%	1.060	21%

CATEGORY 6

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	85%	1.000	85%
2005	69%	1.068	74%
2004	52%	1.113	58%
2003	34%	1.112	38%
2002 and older	20%	1.106	22%

CATEGORY 7

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	92%	1.000	92%
2005	84%	1.031	87%
2004	76%	1.058	80%
2003	67%	1.062	71%
2002	58%	1.061	62%
2001	49%	1.061	52%
2000	39%	1.072	42%
1999	30%	1.081	32%
1998	24%	1.090	26%
1997 and older	20%	1.106	22%

CATEGORY 8

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2006	92%	1.000	92%
2005	84%	1.032	87%
2004	76%	1.072	81%
2003	67%	1.080	72%
2002	58%	1.090	63%
2001	49%	1.098	54%
2000	39%	1.110	43%
1999	30%	1.123	34%
1998	24%	1.128	27%
1997 and older	20%	1.142	23%

(3) This rule is effective for tax years beginning after December 31, 2006.

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-207, 15-6-219, 15-24-921, 15-24-922, 15-24-925, MCA; NEW, 1982 MAR p. 1052, Eff. 5/14/82; AMD, 1985 MAR p. 2032, Eff. 12/27/85; AMD, 1986 MAR p. 2068, Eff. 12/27/86; AMD, 1988 MAR p. 747, Eff. 4/15/88; AMD, 1989 MAR p. 613, Eff. 5/12/89; AMD, 1991 MAR p. 915, Eff. 6/14/91; AMD, 1991 MAR p. 2043, Eff. 11/1/91; AMD, 1992 MAR p. 2394, Eff. 10/30/92; AMD, 1993 MAR p. 2972, Eff. 12/10/93; AMD, 1994 MAR p. 3195, Eff. 12/23/94; AMD, 1996 MAR p. 1174, Eff. 4/26/96; AMD, 1996 MAR p. 3151, Eff. 12/6/96; AMD, 1997 MAR p. 2297, Eff. 12/16/97; AMD, 1999 MAR p. 154, Eff. 12/18/98; AMD, 1999 MAR p. 2909, Eff. 12/17/99; AMD, 2000 MAR p. 3563, Eff. 12/22/00; AMD, 2001 MAR p. 2249, Eff. 11/9/01; AMD, 2002 MAR p. 3728, Eff. 12/27/02; AMD, 2003 MAR p. 2901, Eff. 12/25/03; AMD, 2004 MAR p. 2603, Eff. 10/22/04; AMD, 2005 MAR p. 2262, Eff. 11/11/05; AMD, 2006 MAR p. 2979, Eff. 12/8/06.