1. (1) Tangible assets of the following types in which a provider has an economic interest through ownership are subject to depreciation:

   1. (a) Buildings — The basic structure or shell and additions thereto;

   2. (b) Building Fixed Equipment — Attachments to buildings, such as wiring, electrical fixtures, plumbing, elevators, heating system, and air conditioning system. The general characteristics of this equipment are:

      1. (A) Affixed to the building and not subject to transfer;
      2. (B) A fairly long life but shorter than the life of the building to which affixed.

   3. (c) Movable Equipment — Such items as beds, wheelchairs, desks, vehicles, and other depreciable items. The general characteristics of these equipment are:

      1. (A) Capable of being moved;
      2. (B) Subject to control and meeting the definition of a capital asset.
   4. (d) Land Improvements — Such items as paving, tunnels, underpasses, on-site sewer and water lines, parking lots, shrubbery, fences, walls, etc. where replacement is the responsibility of the provider;
   5. (e) Leasehold Improvements — Betterments and additions made by the lessee to the leased property that become the property of the lessor after the expiration of the lease.
2. (2) Land is not Depreciable. The cost of land includes the cost of such items as off-site sewer and water lines, public utility charges necessary to service the land, governmental assessments for street paving and sewers, the cost of permanent roadways and grading of a non-depreciable nature, and the cost of curbs and side walks, replacement of which is not the responsibility of the provider.

Statutory/Other Authority

ORS 410.070

Statutes/Other Implemented

ORS 410.070

History

SPD 9-2006, f. 1-26-06, cert. ef. 2-1-06
Renumbered from 461-017-0365 by Ch. 784, OL 1981 & AFS 69-1981, f. 9-30-81, cert. ef. 10-1-81
AFS 19-1978, f. & cert. ef. 5-1-78
PWC 866(Temp), f. 12-30-77, cert. ef. 1-1-78