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MONTANA

Railroad Car Company Time/Speed Studies

RCC-4

Instructions for Use in Tax Year 2014

Rev. 11-12

Private railroad car companies must file time/speed studies with the Department of Revenue once every

three years if they want the department to use mileage rates higher than those specified in the department's

rules, 42.22.101 and 42.22.121, ARM.

Time/speed study reports must conform to all requirements to receive consideration.

The department may request railroad car companies to provide supporting documentation for the studies.

Companies do not need to include any supporting documentation with this report (except as specified in

item (6)(c), below); however, railroad car companies should be prepared to submit appropriate supporting

documentation upon request.

Time/speed studies must follow the format detailed in the following instructions and shown in the

accompanying example.

The report format requires the presentation of the following information:

 Car identification information - car mark and car number

 Departure location, outside Montana

 Departure date

 Departure time, using the 24-hour clock format (i.e., 3:00 pm should be reported as 1500)

 Arrival location, also outside Montana

 Arrival date

 Arrival time, as above

 Elapsed time, in hours - computed to two decimal places

 Trip miles between the departure location and the arrival location

 Computation of average daily speed, as follows:



Total elapsed time, in hours, for all cars



Total trip miles for all cars



Average speed (miles per hour) = Total trip miles for all cars divided by total elapsed time for all

cars



Average miles per day = Average miles per hour multiplied by 24, rounded to the nearest whole

number

Special matters:

 Companies must use a statistically valid sample of car activity for the month of August 2013, as the

selected month for their studies.

 Companies must submit a separate study for each car type for which it wants the Department of

Revenue to use something other than the default speed. For example, if a company has both tank

cars and hopper cars, it must submit a study for its tank cars and a study for its hopper cars to

establish speeds for each car type. (Note: The Department of Revenue treats all hopper cars as

one type, regardless of whether they are covered or open.) If, for some reason, the company only

does a study of one car type, the department will use the default speed for other car types in the

company's fleet. The department will not accept studies that have a mixture of car types.

 Companies should review the movements of cars in their studies. If a car is parked (idle) between

the timing points, but outside the State of Montana, the company may use either of two options. It

may exclude the car from the study and replace it with another (to maintain the statistical validity of

the sample size), or it may adjust the trip time by the amount of the idle time outside the State. The

company must provide a list of all cars excluded or adjusted, together with appropriate

documentation to support the adjustment or justify the exclusion.

Montana Form Rcc-4 - Railroad Car Company Time/speed Studies Instructions For Use In Tax Year 2014

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