Landlord Can Add Parking Tax to Tenant's Garage Rent

Landlord asked the DHCR to decide whether it could charge parking tax to rent-stabilized garage tenant. Tenant had signed a separate one-year lease for a parking space at the building in 2008 at the rate of $395 per month. Landlord later offered tenant a parking renewal lease at the prior rent plus a guidelines increase plus “tax.” Tenant refused to sign the renewal lease because the initial lease didn’t include any reference to tax. Tenant claimed that the renewal lease wasn’t offered on the same terms and conditions as the initial lease. The DRA ruled for landlord, finding that landlord could add New York City Garage Tax to the rent set forth in tenant’s renewal lease. Tenant appealed and lost. Rent Stabilization Code Section 2522.5(g)(1) states that a lease must be renewed on the same terms and conditions “except where the owner can demonstrate that the change is necessary in order to comply with a specific requirement of law or regulation applicable to the building or to the leases for the housing accommodations[.]” Although tenant’s initial garage lease didn’t contain any provision for parking tax, landlord can collect the tax. It is the DHCR’s policy that such tax may be collected from tenant as long as the parking or garage space was provided at a charge separate from the apartment rent.

Hollander: DHCR Adm. Rev. Docket No. XL410024RT (4/9/10) [3-pg. doc.]