Mont. Admin. r. 42.20.501 - DEFINITIONS
The following definitions apply to this subchapter:
(1) "2014 tax year value" means the market
value of a property which appears on the 2014 property tax record of that
property.
(2) "Annual appraisal
trend factor class five" means a factor used to annually reappraise class five
qualifying air and water pollution control property, new industrial property,
gasohol facilities, qualifying research and development firms, and electrolytic
reduction facilities real property by trending their cost values up or down
based on accepted cost indices.
(3)
"CDU rating" means a composite rating of the overall condition, desirability,
and usefulness of a structure, used nationally as a simple, direct, and uniform
method of estimating accrued depreciation.
(4) "Current year phase-in value" is the
difference between the reappraisal value and the value before reappraisal (VBR)
times the phase-in percentage, added to the VBR. The current year phase-in
value is the amount subject to tax each year, and is determined by the
following formula:
Current year phase-in value =
[(Reappraisal (REAP) value - VBR) x phase-in %] + VBR
(5) "Destruction" means
the removal or deletion of improvements, buildings, living areas, garages, and
out-buildings caused by burning, razing, or natural disaster.
(6) "Dwelling unit" is defined as a building
or portion of a building that contains living facilities with provision for
sleeping, eating, cooking, and sanitation for one or more persons.
(7) "Full reappraisal to taxable value
conversion factor for class four commercial property" is the total taxable
value of class four commercial property divided by the total reappraisal value
of the same class four commercial property.
(8) "Full reappraisal to taxable value
conversion factor for class four residential" is the total taxable value of
class four residential property divided by the total reappraisal value of the
same class four residential property.
(9) "Improvement grade change" means a change
in the quality of construction of an improvement. Each improvement grade
signifies a different level of construction quality. Examples of improvement
grades include, but are not limited to, the following:
(a) 1F-1 = cheap construction;
(b) 1F-5 = average construction;
and
(c) 1F-9 = superior
construction.
(10) "Land
productivity change (grade change)" means a change in the productive capacity
or yield of agricultural or forest land. In a land productivity change, the
land use does not change; rather, the land as currently used simply becomes
more or less productive. For example, a productivity change in grazing land may
occur when it is discovered that the productivity potential has decreased due
to a new saline seep on the land. Because the land continues to be used as
grazing land, the department shall continue to classify the land as
agricultural grazing land, but the grade of the grazing land may be changed to
reflect its lessened productivity.
(11) "Land reclassification" means changing
the use of land from one type of agricultural use to a different type of
agricultural use. For example, a land reclassification occurs when agricultural
land that was previously used as grazing land is converted to irrigated land.
In a land reclassification, the land is dedicated to agricultural purposes both
before and after the change in land use. It is this characteristic that
distinguishes a land reclassification from the more general land use
change.
(12) "Land split" means the
division of a single property into two or more properties for the ultimate
purpose of conveying one or more of the properties to a new owner or
owners.
(13) "Land use change"
means the conversion of a current use of land to a different, alternate use.
Land splits shall be considered land use changes. Examples of land use changes
contained in this definition include, but are not limited to, the following:
(a) agricultural land converted to tract
land;
(b) forest land converted to
tract land;
(c) forest land
converted to agricultural land; or
(d) land that is converted to another use due
to a subdivision of real property.
(14) "Living area" means any room or group of
rooms designed as the living quarters of one family or household, equipped with
cooking and toilet facilities, and having an independent entrance from a public
hall or from the outside.
(15)
"Neighborhood (NBHD) group percentage" means the percent of change in value
from the total 2014 tax year value of the year before reappraisal to the total
2015 reappraisal value, excluding properties with new construction, for those
homogeneous areas within each county or between counties that have been defined
as a neighborhood group. The neighborhood group percentage is determined by
using the following formula:
Neighborhood Group Percentage =
(Total 2008 NBHD REAP Value - Total 2015 NBHD Tax Year Value)/ Total 2014 NBHD Tax Year Value
(a) Individual neighborhood group percentages
will be determined for residential land, commercial land, residential
improvements, and commercial improvements.
(16) "New construction" means the
construction, addition, or substitution of improvements, buildings, living
areas, garages, and outbuildings; or the extensive remodeling of existing
improvements, buildings, living areas, garages, outbuildings, land
reclassification, and land use changes.
(17) "New construction trend factor for
industrial property" means a factor used to adjust reappraisal values and VBRs
(values before reappraisal) in instances where the property has new
construction or destruction. The factor will be derived from nationally
accepted cost indices.
(18)
"Phase-in percentage" for tax years 2015 through 2020 is 16.6 percent per year.
The phase-in percentage accumulates annually.
(19) The "previous year tax revenue" means
the product of multiplying the previous tax year total taxable value for each
taxing jurisdiction by the previous year mill levy for that taxing
jurisdiction.
(20) "Reappraisal
(REAP) value" means the full 2015 value determined for the current reappraisal
cycle pursuant to
15-7-111, MCA, adjusted annually
for new construction or destruction. The 2015 reappraisal value reflects a
market value of the property on January 1, 2014. A current year REAP value is
the same as the 2015 reappraisal value of the property if there is no new
construction, destruction, land splits, land use changes, land
reclassifications, land productivity changes, improvement grade changes, or
other changes made to the property during 2015 or subsequent tax
years.
(21) "Subdivision of real
property" means the first sale of a land parcel that results in the land being
taxable as class four as described in
15-6-134, MCA, or nonagricultural
land as described in
15-6-133(1)(c),
MCA.
(22) "Taxable market value"
means that portion of the total market value subject to taxation after the
total market value has been adjusted, if applicable, for the phase-in of
value.
(23) "Value before
reappraisal (VBR)" means the 2014 tax year value adjusted for any new
construction or destruction that occurred in the prior year. The VBR for the
2015 tax year and subsequent years is the same as the 2014 tax year value if
there is no new construction, destruction, land splits, land use changes, land
reclassifications, improvement grade changes, or other changes made to the
property during 2014 or subsequent tax years.
Notes
AUTH: 15-1-201, 15-7-111, MCA; IMP: 15-7-111, 15-10-420, MCA
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