Sales Tax Deducted from Approved Cost

Landlord applied for MCI rent hikes based on the installation of a new roof. The DRA ruled for landlord. Landlord appealed, claiming that sales tax shouldn't have been deducted from the total approved MCI cost. The DHCR ruled against landlord. Landlord's contract total included sales tax. Sales taxes can't be passed on to tenants for repayment. So the DRA properly deducted the sales tax from landlord's total payment to its contractor.

Cadim Stonehenge 56th Assocs.: DHCR Adm. Rev. Dckt. No. RL410004RO (4/13/04) [2-pg. doc.]