State’s Depreciation Schedule Expected To Increase
It appears that Montana will impose an increased depreciation schedule starting in 2023.
Robert Story, president of the Montana Taxpayers Association, explained the state’s depreciation schedule is anticipated to increase. For example, the five-year average increase rate of office equipment is 3.5 percent and it’s anticipated to be 14.12 percent.
Other anticipated depreciation schedule increases include 16.15 percent for furniture and fixtures, 18.10 percent for oil and gas field equipment, 16.15 percent for farm machinery and equipment, and 12.18 percent for heavy equipment.
Story explained that Gov. Gianforte is proposing an exemption up to $1 million for equipment, so the majority of farmers and small businesses would not be effective directly if the depreciation schedule changes.
He noted that the state already has a surplus of $95 million. He’s heard some of those funds might go into school funding or rebates to homeowners.
“I don’t know what’s the solution is they will come up with,” Story said of the Montana legislators.