Centrally Assessed Property

What Is Centrally Assessed Property?

Centrally Assessed properties are appraised and taxed at the state level instead of the county level.

Types of centrally assessed property include:

  • Railroad
  • Rail car
  • Microwave Transmitters
  • Telecommunications
  • Telephone cooperatives
  • Gas utilities
  • Electric utilities
  • Electric cooperatives
  • Ditch
  • Canal
  • Flume
  • Natural Gas Pipeline
  • Oil pipeline
  • Airlines

Requirements for Central Assessment

To be centrally assessed, the property must be either:

  • Physically Connected Property: The company has property that crosses a county or state line.
  • Unity of Operation: The company has property that works as a single entity across a county or state line, even if it isn't physically connected.

See 15-23-101, MCA and ARM 42.22.102.

Appraisal of Centrally Assessed Property

We value Centrally Assessed property using the Unit method and may include a:

  • Cost indicator
  • Capitalized income indicator
  • Market indicator

We use an industry capitalization rate to estimate values when relying on the capitalized income indicator.

We perform an annual capitalization rate study for each industry to set the capitalization rates.

Learn more about Capitalization Rate Studies (ARM 42.22.111).

Reporting Requirements

In 2023, the Montana Legislature passed Senate bill 54, which established a two- year reappraisal cycle for certain Centrally Assessed Property.

The following outlines the reappraisal and reporting schedule by industry type:

Annual Appraisal

  • Railroad Property
  • Net proceeds of mines (except bentonite)
  • Gas proceeds of coal mines
  • Beneficial user of tax-exempt property

Odd-Year Appraisal

  • Telegraph, telephone, microwave
  • Telecommunication services companies
  • PSC or FERC regulated natural gas transmission or oil transmission pipelines
  • Common carrier pipelines
  • Gas gathering facilities identified in §15-6-138(5), MCA
  • Dedicated Communications infrastructure, defined in §15-6-152(5), MCA

Even-Year Appraisal

  • Electric power or transmission lines
  • Natural gas distribution lines
  • Scheduled Airlines
  • Everything else

In the year a centrally assessed company is scheduled to be valued, the company must submit to the department a Centrally Assessed Property Report for the preceding year. The due date of the form is set by Montana Code Annotated 15-23-103, and the report contents are outlined by Administrative Rules of Montana 42.22.105 and are summarized below:

Report Content Requirements

A Report must contain the following information and/or documents on the operating properties:

  1. a balance sheet for the unit;
  2. a statement of income for the unit:
  3. a statement of cash flow for the unit;
  4. a statement of original cost and book depreciation for the unit’s property, including an estimate of current value of property leased from others;
  5. a statement of outstanding preferred stock, common stock, and debt, showing both book value and market value;
  6. a statement of actual revenue and expense for the Montana operation (if actual amounts are not available, a statement of allocated revenue and expense may be substituted);
  7. if nonoperating properties are included in (3)(a) through (e), a statement of their original cost, book depreciation, market value, and income;
  8. a statement of general description, original cost, and book depreciation of Montana properties, including description and location of property leased from others, together with name of lessor, current value or annual rental, and responsibility for the property tax (lessor or lessee);
  9. if rolling stock is allocated to Montana, a statement of the method used;
  10. pertinent statistical data on the company's operations within and without this state;
  11. a copy of the annual report to stockholders;
  12. a copy of the annual report to the federal regulatory agency if one is filed;
  13. a copy of the annual report to the Montana Public Service Commission if one is filed;
  14. in the case of a centrally assessed railroads, all information required under ARM 22.106;
  15. in the case of centrally assessed electric utilities, all information required under ARM 42.22.107, if applicable
  16. all other information requested by the department which will assist in valuing the properties; and
  17. a signed statement of correctness

Situs and Mileage Statements

In addition to submitting the required Report, each centrally assessed company must update situs and mileage statements and submit them with the Report. The information on the situs and mileage statements shall be reported by county and taxing units in which they are situated. The situs statements shall contain a general description and installed cost for operating situs property.

  1. Companies that have been valued in the appraisal cycle by the department are notified by letter using the information on file around January 15th of each year regarding the current year’s reporting requirements.
  2. Reporting forms are usually available around January 31st and sent by email to companies that have previously reported in the current appraisal cycle. Reporting form requests can be emailed to DORUtilityForms@mt.gov. 
  3. Companies required to file in the current year must submit reporting forms by the due date of March 31st or April 15th (Railroads and Pipelines) and update situs and mileage statements on the Transaction Portal (TAP).
  4. For companies not required to file in the current year, there are no reporting requirements. The company will receive a Notice of Assessment email by May 1st based on the previously appraised market value.
  5. For companies required to file reporting forms in the current year, the valuation will be sent by email by June 1st. Companies may request an informal review within 20 days of receiving their valuation. For additional information on filing appeals see Appeal Process.

Reports and Resources

Date and Reports by Tax Year

Railroad and Rail Car Resources

Other Reports and Memos