S.D. Admin. R. 64:04:04:05
Current through Register Vol. 51, page 67, December 16, 2024
Functional and external obsolescence allowances shall be estimated by analyzing the market value using the income or sales comparison approaches. The estimate of value obtained by these two approaches, when compared to the value obtained by the cost approach, indicate the degree of obsolescence present. Since the replacement cost approach generally produces the upper limit of value, evidence of obsolescence is revealed when the income or market value estimates are less than the value obtained by the depreciated replacement cost method.
S.D. Admin. R. 64:04:04:05
General Authority: SDCL 10-1-16.1.
Law Implemented: SDCL 10-6-33.