Qualifying Non-Centrally Assessed Rural Electric Associations
The market value of personal and real property belonging to qualifying non-centrally assessed rural electric associations is determined utilizing the same methods for other similar property, but taxable value is calculated at 8%.
Department appraisers determine the value of the property using a method referred to as the "unit approach to value." The appraiser determines a system value for the company, allocates a portion to the state and then apportions values to the counties where the property is located.
Three indicators are typically used to determine the system value of the company: Cost, Income and Market.
The indicators are then correlated to arrive at a system value. The Department of Revenue determines an allocated value to the state (that portion of the correlated system value which belongs to Montana). The department then apportions the allocated Montana value to the counties where the property is located.
