S.D. Admin. R. 67:16:04:46

Current through Register Vol. 50, page 162, June 24, 2024

Section 67:16:04:46 - Depreciation

The department calculates depreciation as follows:

(1) Masonry buildings are calculated using the straight-line method not to exceed three percent of the capital cost basis of the building. The capital cost basis for depreciation of new construction, major renovations, and facilities acquired through purchase is subject to a salvage value computation of at least fifteen percent;

(2) Frame buildings are calculated using the straight-line method not to exceed four percent of the capital cost basis of the building. The capital cost basis for depreciation of new construction, major renovations, and facilities acquired through purchase is subject to a salvage value computation of at least- fifteen percent;

(3) Fixed equipment are calculated based on the useful life of the item as determined according to the "Estimated Useful Lives of Depreciable Hospital Assets, 2018 Edition";

(4) Major movable equipment, furniture, automobiles, and specialized equipment are calculated using the straight-line method and the useful life of the item as determined according to the "Estimated Useful Lives of Depreciable Hospital Assets, 2018 Edition."

The department may allow a facility to deviate from a determination based on the "Estimated Useful Lives of Depreciable Hospital Assets" if the facility provides the department with documented historical proof of the asset's useful life.

S.D. Admin. R. 67:16:04:46

16 SDR 26, effective 8/13/1989; transferred from; 50 SDR 011, effective 8/7/2023

General Authority: SDCL 28-6-1.

Law Implemented: SDCL 28-6-1(2).

Estimated Useful Lives of Depreciable Hospital Assets, 2018 edition, published by the American Hospital Association, 211 East Chicago Avenue, Chicago, Illinois 60611, https://www.aha.org/; $88.