Rule 42.26.803 - THE PROPERTY FACTOR(1) Owned aircraft shall be valued at its original cost and rented aircraft shall be valued at eight times the net annual rental rate in accordance with ARM 42.26.235 through 42.26.237. The use of the taxpayer's owned or rented aircraft in an interchange program with another air carrier will not constitute a rental of such aircraft by the airline to the other participating airline. Such aircraft shall be accounted for in the property factor of the owner/renter. Parts and other expendables, including parts for use in contract overhaul work, will be valued at cost.(2) The denominator of the property factor shall be the average value of all of the taxpayer's real and tangible personal property owned or rented and used during the income year. The numerator of the property factor shall be the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the income year.(3) In determining the numerator of the property factor, all property except aircraft ready for flight shall be included in the numerator of the property factor in accordance with ARM 42.26.231 through 42.26.237. Aircraft ready for flight shall be included in the numerator of the property factor in the ratio calculated as follows: (a) departures of aircraft from locations in this state weighted as to the cost and value of aircraft by type compared to total departures similarly weighted.Mont. Admin. r. 42.26.803
NEW, 1988 MAR p. 401, Eff. 2/26/88; TRANS, from 42.26.282 and AMD, 2001 MAR p. 2469, Eff. 12/21/01.Sec. 15-1-201, 15-31-313, and 15-31-501, MCA; IMP, Sec. 15-1-601, 15-31-306, 15-31-307, and 15-31-312, MCA;