Montana Administrative Code

42.22.122 APPORTIONMENT PROCEDURE Except for railroad car companies, the department shall apportion the Montana allocated value of centrally assessed companies to the taxing units. To determine the amount of value available for distribution to the taxing units, the department sha…

42.22.1301 DEFINITIONS The following definitions apply to terms found in this subchapter: "Industrial appraiser" means a person who has completed the necessary training and is certified to appraise industrial property in Montana. "Industrial improvements" means all improvements u…

42.22.1302 INDUSTRIAL PLANT (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-8-111, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; REP, 2005 MAR p. 667, Eff. 4/29/05.

42.22.1303 CLASSIFICATION OF INDUSTRIAL BUILDINGS IMPROVEMENTS (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-6-134, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; REP, 2005 MAR p. 667, Eff. 4/29/05.

42.22.1304 VALUATION OF INDUSTRIAL IMPROVEMENTS (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-6-134, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; AMD, 1992 MAR p. 2078, Eff. 9/11/92; AMD, 1996 MAR p. 3153, Eff. 12/6/96; AMD, 2004 MAR p. 2106, Ef…

42.22.1305 INDUSTRIAL PROPERTY OTHER THAN LAND (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-8-111, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; AMD, 1992 MAR p. 2560, Eff. 11/26/92; AMD, 1996 MAR p. 3153, Eff. 12/6/96; AMD, 2005 MAR p. 667, Eff…

42.22.1306 VALUATION OF INDUSTRIAL PROPERTY OTHER THAN LAND All property other than land or industrial improvements to land shall be valued by trending the original installed cost to a current replacement cost, then depreciating on an age/life basis to compensate for ordinary phy…

42.22.1307 TREND FACTORS (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-8-111, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; AMD, 2012 MAR p. 2496, Eff. 12/7/12; REP, 2020 MAR p. 2276, Eff. 1/1/21.

42.22.1308 DEPRECIATION SCHEDULES (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-8-111, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; AMD, 2012 MAR p. 2496, Eff. 12/7/12; REP, 2020 MAR p. 2276, Eff. 1/1/21.

42.22.1309 VALUATION METHODS FOR INDUSTRIAL PROPERTIES When determining the market value of industrial properties, department appraisers may consider, based on generally accepted appraisal principles, the cost approach, the income approach, and the market approach to value, if th…

42.22.1310 ISSUANCE OF DEPRECIATION AND TRENDING SCHEDULES (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-8-111, MCA History: NEW, 1982 MAR p. 1270, Eff. 7/1/82; AMD, 2005 MAR p. 667, Eff. 4/29/05; REP, 2020 MAR p. 2276, Eff. 1/1/21.

42.22.1311 INDUSTRIAL MACHINERY AND EQUIPMENT TREND FACTORS Prior to January 1 of each year, the department calculates trend factors to value industrial machinery and equipment for ad valorem tax purposes pursuant to ARM 42.22.1306. The department uses annual cost indexes from th…

42.22.1312 INDUSTRIAL MACHINERY AND EQUIPMENT DEPRECIATION SCHEDULE (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-6-135, 15-6-138, 15-6-156, 15-6-157, 15-6-158, 15-8-111, MCA History: NEW, 1986 MAR p. 2074, Eff. 12/27/86; AMD, 1992 MAR p. 2560, Eff.…

42.22.1313 ASSESSMENT OF GRAIN, SEED, AND FERTILIZER STORAGE FACILITIES Grain storage facilities, seed treating plants, and fertilizer storage plants are improvements to real property for which the use is bulk storage of unprocessed grain, seed cleaning and treating, and bulk sto…

42.22.1314 2003 INDUSTRIAL PROPERTY REAPPRAISAL (REPEALED) Authorizing statute(s): 15-1-201, 15-7-111, MCA Implementing statute(s): 15-7-111, MCA History: NEW, 1993 MAR p. 2127, Eff. 9/17/93; AMD, 1996 MAR p. 3149, Eff. 12/6/96; TEMP, AMD, 1997 MAR p. 1593, Eff. 9/9/97; AMD, 2000…

42.22.1315 2015 INDUSTRIAL PROPERTY REAPPRAISAL (REPEALED) Authorizing statute(s): 15-1-201, 15-7-111, MCA Implementing statute(s): 15-7-111, MCA History: NEW, 1996 MAR p. 3149, Eff. 12/6/96; TEMP, AMD, 1997 MAR p. 1593, Eff. 9/9/97; AMD, 2000 MAR p. 3562, Eff. 12/22/00; AMD, 200…

42.22.1316 INDUSTRIAL PROPERTY CERTIFICATION REQUIREMENTS The employee must hold a bachelor degree from an accredited college or have at least five years experience in the industrial or complex property valuation field. Training and testing criteria shall be as follows: The emplo…

42.22.1317 UNIT VALUATION OR CENTRALLY ASSESSED PROPERTY APPRAISER CERTIFICATION REQUIREMENTS The employee must hold a bachelor degree from an accredited college or have at least five years experience in the business or centrally assessed property valuation field. Training and te…

42.22.1318 ENERGY PRODUCTION OR DEVELOPMENT - PROPERTY TAX ABATEMENT ELIGIBILITY FOR NEW INVESTMENT IN THE CONVERSION, TRANSPORT, MANUFACTURE, RESEARCH, AND DEVELOPMENT OF RENEWABLE ENERGY, CLEAN COAL ENERGY, AND CARBON DIOXIDE EQUIPMENT AND FACILITIES The property owner of recor…

42.22.1401 TAX BENEFITS FOR CLASS FOUR NONPRODUCTIVE PROPERTY (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-6-101, 15-6-150, 15-6-155, 15-8-111, MCA History: NEW, 1988 MAR p. 742, Eff. 4/15/88; AMD, 1992 MAR p. 2560, Eff. 11/26/92; AMD, 2000 MAR p. …

42.22.201 DEFINITIONS The following definitions apply to this sub-chapter: "Electricity produced in the state for delivery outside of the state" as used in 15-72-104 , MCA, means electricity that is produced at an electrical generation facility in Montana, and delivered immediate…

42.22.202 WHOLESALE ENERGY TRANSACTION TAX - ASSESSMENT OF THE TAX A distribution services provider who purchases its electricity directly from an agency of the United States government will self-assess the tax on the kilowatt hours of electricity that it receives and will forwar…

42.23.101 EXTENT OF TAX LIABILITY Every corporation engaged in business in Montana must annually pay the statutory percentage of its total net income received from all sources within the state during the preceding year. The tax may not be less than the specified minimum, which mu…

42.23.102 DOING OR ENGAGING IN BUSINESS A corporation is "doing business" or "engaging in business" in Montana when it actively engages therein in any profit seeking activity. The fact that its activity may result in a loss is not material. Authorizing statute(s): 15-31-501, MCA …

42.23.103 EXEMPTIONS A corporation is not exempt from this tax merely because it is not organized and operated for profit. A corporation seeking the benefits of exemption must prove strict compliance with all statutory conditions authorizing the classification claimed. In order t…

42.23.104 GROSS INCOME (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-501, MCA Implementing statute(s): Sec. 15-31-113, MCA History: Eff. 12/31/72; AMD, 1979 MAR p. 1553, Eff. 12/14/79; REP, 2001 MAR p. 2046, Eff. 10/12/01.

42.23.105 DISCLOSURE OF INFORMATION (REPEALED) Authorizing statute(s): 15-31-501, MCA Implementing statute(s): 15-31-507, MCA History: Eff. 12/31/72; AMD, 1982 MAR p. 104, Eff. 1/29/82; REP, 2011 MAR p. 2053, Eff. 9/23/11.

42.23.106 TREATMENT OF GAINS FROM CERTAIN LIQUIDATION Gains resulting from a liquidation pursuant to IRC 331 through 337 are taxable to the liquidating corporation to the extent these gains are attributable to corporate or individual share holders not subject to tax. In the event…

42.23.107 DEFINITIONS The following definitions apply to rules found in this chapter: "Small business investment company" means only those companies approved and licensed to operate as small business investment companies by the federal small business administration. Authorizing s…

42.23.108 CONDITIONS FOR EXEMPTION FOR DIVIDENDS Dividends and capital gains received by a corporation from an investment in a small business investment company are exempt from tax and the provisions of Title 15, chapter 31, MCA, provided all the following conditions are met: The…

42.23.109 REPORTING REQUIREMENTS The small business investment company shall report as part of the corporate income tax return the following information on a form provided for that purpose: the names of all investors in the small business investment company; the amount of investm…

42.23.110 DETERMINATION OF QUALIFIED INVESTMENTS In instances where it is difficult to determine if a business in which a small business investment company has invested qualifies as a manufacturing, timber product processing, or agricultural company with at least 50% of its emplo…

42.23.111 FEDERAL OBLIGATION INTEREST (Is Hereby Re-pealed.) Authorizing statute(s): Sec. 15-31-501, MCA Implementing statute(s): Sec. 15-31-113, 15-31-114, and 15-31-116, MCA History: NEW, 1985 MAR p. 375, Eff. 4/26/85; REP, 1996 MAR p. 1177, Eff. 4/26/96.

42.23.112 RESEARCH AND DEVELOPMENT - APPLICATION AND ELIGIBILITY The department will certify the eligibility of firms for both the five-year corporation tax exemption and the class five research and development property classification. A firm may apply for either or both the corp…

42.23.113 RESEARCH AND DEVELOPMENT FIRM - EXEMPTION PERIOD An entity that qualifies as a research and development firm as defined in 15-1-101, MCA, and is incorporated or qualified to do business in Montana on or after July 1, 1987, is exempt from the corporate income tax on the …

42.23.114 REORGANIZATIONS A corporation which is created through the reorganization of a corporation currently operating in Montana, is not eligible for the research and development tax benefits if the newly created research and development subsidiary is essentially continuing cu…

42.23.115 PRINCIPAL PURPOSE DEFINED In order for a firm to qualify as a research and development firm, over 50% of the real and tangible personal property located in Montana and 50% of its Montana payroll must be directly related to research and development activities. Authorizin…

42.23.116 UNRELATED INCOME Income earned by a research and development firm which is unrelated to research and development activities is not eligible for the five-year exemption from the Montana corporate income tax. In making the determination of whether income earned is related…

42.23.117 SURTAX (REPEALED) Authorizing statute(s): 15-31-501, MCA Implementing statute(s): 15-31-121, MCA History: NEW, 1988 MAR p. 277, Eff. 2/12/88; AMD, 1990 MAR p. 234, Eff. 1/26/90; REP, 2016 MAR p. 2198, Eff. 11/26/16.

42.23.118 NATURE OF PROPERTY BEING SOLD (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-313 and 15-31-501, MCA Implementing statute(s): Sec. 15-31-301 and 15-31-303, MCA History: NEW, 1988 MAR p. 1814, Eff. 8/12/88; REP, 2001 MAR p. 2046, Eff. 10/12/01.

42.23.119 SOLICITATION OF ORDERS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-313 and 15-31-501, MCA Implementing statute(s): Sec. 15-31-301 and 15-31-303, MCA History: NEW, 1988 MAR p. 1814, Eff. 8/12/88; REP, 2001 MAR p. 2046, Eff. 10/12/01.

42.23.120 INDEPENDENT CONTRACTORS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-313 and 15-31-501, MCA Implementing statute(s): Sec. 15-31-301 and 15-31-303, MCA History: NEW, 1988 MAR p. 1814, Eff. 8/12/88; REP, 2001 MAR p. 2046, Eff. 10/12/01.