Rent paid to a related-party organization is not an allowable cost. Actual cost of ownership must be used. For purposes of this rule, cost of ownership is mortgage interest, depreciation on and repairs to buildings and equipment, insurance on buildings and equipment, and property taxes.

Source: 16 SDR 26, effective August 13, 1989; transferred from § 67:16:04:08.06, 21 SDR 8, effective July 25, 1994; 29 SDR 177, effective July 1, 2003; 29 SDR 177, adopted July 1, 2003, effective July 1, 2004.

General Authority: SDCL 28-6-1.

Law Implemented: SDCL 28-6-1.