2015 Utah Code
Title 63I - Oversight
Chapter 4a - Free Market Protection and Privatization Board Act
Part 2 - Free Market Protection and Privatization Board
Section 205 - Board accounting method.

63I-4a-205. Board accounting method.
The board by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall establish an accounting method that:

• (1) is similar to generally accepted accounting principles used by a private enterprise;

• (2) allows an agency to identify the total actual cost of engaging in a commercial activity in a manner similar to how a private enterprise identifies the total actual cost to the private enterprise, including the following:
  • (a) a labor expense, including:
    • (i) compensation and benefits;
    • (ii) a cost of training;
    • (iii) a cost of paying overtime;
    • (iv) a cost of supervising labor; or
    • (v) another personnel expense;
  • (b) an operating cost, including:
    • (i) vehicle maintenance and repair;
    • (ii) a marketing, advertising, or other sales expense;
    • (iii) an office expense;
    • (iv) a cost of an accounting operation, including billing;
    • (v) an insurance expense;
    • (vi) a real estate or equipment cost;
    • (vii) a debt service cost; or
    • (viii) a proportionate amount of other overhead or of a capital expense, such as vehicle depreciation and depreciation of other fixed assets;
  • (c) a contract management cost; and
  • (d) another cost particular to a person supplying the good or service; and

• (3) provides a process to estimate the taxes an agency would pay related to engaging in a commercial activity if the agency were required to pay federal, state, and local taxes to the same extent as a private enterprise engaging in the commercial activity.

Renumbered and Amended by Chapter 325, 2013 General Session