(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years corresponds 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 percent to 20 percent residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall & Swift Valuation Service Guide, "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 2015 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/ ACQUIRED	%GOOD	TREND FACTOR	TRENDED % GOOD
2014	70%	1.000	70%
2013	45%	0.986	44%
2012	20%	0.934	19%
2011 and older	10%	0.861	9%

 

CATEGORY 2

YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2014	85%	1.000	85%
2013	69%	0.998	69%
2012	52%	0.960	50%
2011	34%	0.973	33%
2010 and older	23%	0.977	22%

 

CATEGORY 3

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	85%	1.000	85%
2013	69%	0.999	69%
2012	52%	0.983	51%
2011	34%	0.955	32%
2010 and older	23%	0.921	21%

 

CATEGORY 4

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	85%	1.000	85%
2013	69%	0.996	69%
2012	52%	0.995	52%
2011	34%	0.991	34%
2010 and older	23%	0.978	23%

 

CATEGORY 5

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	85%	1.000	85%
2013	69%	1.008	70%
2012	52%	1.020	53%
2011	34%	1.050	36%
2010 and older	23%	1.059	24%

 

CATEGORY 6

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	85%	1.000	85%
2013	69%	1.015	70%
2012	52%	1.032	54%
2011	34%	1.060	36%
2010 and older	23%	1.097	25%

 

CATEGORY 7

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	92%	1.000	92%
2013	84%	1.015	85%
2012	76%	1.031	78%
2011	67%	1.063	71%
2010	58%	1.079	63%
2009	49%	1.074	53%
2008	39%	1.108	43%
2007	30%	1.128	34%
2006	24%	1.152	28%
2005 and older	21%	1.187	25%

 

CATEGORY 8

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2014	92%	1.000	92%
2013	84%	1.012	85%
2012	76%	1.016	77%
2011	67%	1.045	70%
2010	58%	1.056	61%
2009	49%	1.060	52%
2008	39%	1.127	44%
2007	30%	1.152	35%
2006	24%	1.185	28%
2005 and older	21%	1.223	26%

 

(3) This rule is effective for tax years beginning after December 31, 2014.