<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0691a9aa-8e10-4288-b2d1-0366bebf5f97C2 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; text-decoration: underline; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:46"><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000000">67:16:04:46</span></a><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">.  Depreciation.</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> The department calculates depreciation </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">as follows</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">:</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    (1)  Masonry buildings </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">are</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> calculated </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">using</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> the straight-line </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">depreciation </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">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 </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">fifteen</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> percent;</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    (2)  Frame buildings </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">are</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> calculated </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">using</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> the straight-line </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">depreciation </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">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 </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">fifteen</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> percent;</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    (3)  Fixed equipment </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">is calculated based on</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> the useful life of the item as determined according to the Estimated Useful Lives of Depreciable Hospital Assets, 20</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">18</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> Edition</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">; and</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    (4)  Major movable equipment, furniture, automobiles, and specialized equipment </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">is</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> calculated </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">using</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> the straight-line </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">depreciation </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">method and the useful life of the item </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">i</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">s determined according to the Estimated Useful Lives of Depreciable Hospital Assets, 20</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">18</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> Edition.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">A</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> facility </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">may</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> deviate from </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">a determination based on </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">the Estimated Useful Lives of Depreciable Hospital Assets if the facility provide</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">s</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> the department with documented historical proof of the asset's useful life.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">Source:</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> 16 SDR 26, effective August 13, 1989; transferred from § </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:08.07"><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000003">67:16:04:08.07</span></a><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">, 21 SDR 8, effective July 25, 1994; 26 SDR 5, effective July 1, 1999; 26 SDR 21, effective August 24, 1999; 29 SDR 177, effective July 1, 2003; 35 SDR 312, effective July 6, 2009</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">; 59 SDR 11, effective August 7, 2023</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">General Authority:</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000003">28-6-1</span></a><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">Law Implemented:</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000003">28-6-1</span></a><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">    </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">Reference:</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0-000001">Estimated Useful Lives of Depreciable Hospital Assets</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">, 20</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">18</span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0"> edition, published by the American Hospital </span><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">Association, 155 North Wacker Drive, Chicago, Illinois 60606, </span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C2">https://www.aha.org/</span><span class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97C0">; $88.</span></p><p dir="ltr" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97P0"><span xml:space="preserve" class="s0691a9aa-8e10-4288-b2d1-0366bebf5f97000002"> </span></p></div></body></html>