No MCI Increase for Sales Tax

LVT Number: #24481

Landlord applied for MCI rent hikes based on elevator upgrading. The DRA ruled for landlord in part, excluding from the total claimed costs those attributable to sales tax. Landlord appealed and lost. Landlord claimed that the improvement wasn't subject to sales tax. But the contract for the work submitted to the DRA included sales tax in the contract price. And it was long-standing DHCR policy that sales tax isn't an MCI-eligible item and must be excluded from the total approved cost.