Sales Tax for Heater Excluded

LVT Number: 15511

Landlord applied for MCI rent hikes based on a hot water heater installation. The DRA ruled against landlord for not submitting some requested information. Landlord appealed, claiming that all the required information was submitted. The DHCR ruled for landlord and sent the case back for further processing. But the DHCR noted that landlord included the sales tax in its submitted costs for the hot water heater. Sales tax isn't an allowable part of an MCI expense, so that portion of landlord's claimed costs would be excluded from the calculation of any rent increase.

Landlord applied for MCI rent hikes based on a hot water heater installation. The DRA ruled against landlord for not submitting some requested information. Landlord appealed, claiming that all the required information was submitted. The DHCR ruled for landlord and sent the case back for further processing. But the DHCR noted that landlord included the sales tax in its submitted costs for the hot water heater. Sales tax isn't an allowable part of an MCI expense, so that portion of landlord's claimed costs would be excluded from the calculation of any rent increase.

Seigel: DHCR Admin. Rev. Dckt. No. PJ430003RP (11/13/01) [4-pg. doc.]

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