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Montax Alert

Following is a notice for a Dept. of Revenue rule hearing.

The proposed rules deal with the valuation of commercial property. There are several parts to the rule.

The major purpose of the rule is to outline how the Department will use the capitalized income method to set the values for properties that provide income and expense information. The rule outlines how capitalization rates will be set, and the formula to determine value. It appears that the capitalized income method will be used on income producing commercial properties. Owner occupied commercial properties likely will be valued on the cost method. Commercial property owners who hold their property in a separate entity and lease or rent it back may be impacted by this rule.

The rule also proposes using a Gross Income Method to value some properties. Anyone concerned with this method might consider commenting on it at the rule hearing or by submitting written comments. I don’t understand this methodology, I don’t see how expenses are accounted for in this method.

The rule hearing is July 1st and written comments will be accepted until July 8th .

Montax will likely provide comments on this rule. If you have anything you think we should include in our comments let us know. Please email comments to [email protected]

MAR Notice No. 42-1078pro – pertaining to the valuation of commercial properties
Public Hearing: July 1, 2024
Comment Deadline: 5:00 p.m., July 8, 2024
Contact: Todd Olson | (406) 444-7905 | [email protected]

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Ben Chilwell

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