Section 9-334. THE INCOME-EXPENSE REPORTING FORM

 

334.1In addition to the collection of the information set forth in § 333.4, the Deputy Chief Financial Officer may, in his or her discretion, by written notice to the affected taxpayer, require the taxpayer to provide records and documents that will assist in determining or substantiating the income and economic benefits of the income-producing property.

 

334.2In the absence of any extension of time granted by the Deputy Chief Financial Officer, all records and documents shall be filed with the Office within thirty (30) days from the time of the mailing of the written notice to the affected taxpayer, or as otherwise specified.

 

334.3Examples of records and documents include, but are not limited to, rent rolls, leases, subleases, graduated leases, interim financing documents, gross sales figures, gross gallonage figures, receipts and billings, and (certified/uncertified) financial reports.

 

334.4The income-expense form required to be completed by affected taxpayers shall contain a request for the following general information with respect to the income-producing property for the reporting period in question:

 

(a) Income;

 

(b) Expenses;

 

(c) Vacancy and credit loss;

 

(d) Any miscellaneous information deemed by the Office as necessary to inform it fully of the income and economic benefits of the property, including but not limited to the following:

 

(1) Utility payments;

 

(2) Owner-occupancy;

 

(3) Number of units, number of units available for rent, number of units actually rented, length of time units remained vacant;

 

(4) Length of typical leases to tenants;

 

(5) Lease escalation clauses;

 

(6) Lease increases or decreases;

 

(7) Percentage leases;

 

(8) Rent collected (with or without parking and with or without miscellaneous income) during a given period of time;

 

(9) Real estate taxes paid by the owner;

 

(10) Real estate taxes paid by the lessee;

 

(11) Age of improvements to the property;

 

(12) Year major or minor renovation completed;

 

(13) Gross sales;

 

(14) Scheduled rental rates for any given span of time within the reporting period; and

 

(15) Actual Gross Income;

 

(e) A certification from the owner or agent that the information supplied on the income-expense form is complete and accurate; and

 

(f) A notice of penalties provided for by law for failure to return timely, return accurately, or return completely the income-expense form described in this section.

 

334.5In the case of income-producing properties classified as Class II or Class III under § 2(b) of D.C. Law 3-37 (D.C. Code § 47-813 (1981 Ed.)), a copy of the rent roll as of December 31 of the preceding calendar year certified by the property manager or owner as being true and correct to the best of his or her knowledge and belief shall, in addition to the information required by §334.4, be submitted with the form. The following types of properties shall not be subject to the requirement contained in this subsection:

 

(a) Hotels; and

 

(b) Apartment buildings.

 

334.6In the case of a hotel, a copy of a month-by-month operating statement for the immediately preceding calendar year certified by the hotel manager or owner as being true and correct to the best of his or her knowledge and belief shall be submitted with the form.

 

 

334.7For purposes of this section, the term "operating statement" means an accounting in writing of the gross income, annual expenses, and resulting Net Operating Income of an investment in real estate during a specified period.

 

334.8For the purposes of § 334.5, the term "rent rolls" includes, but is not limited to, the following:

 

(a) Tenant names;

 

(b) Floor and square foot area occupied;

 

(c) Commencement date of the lease;

 

(d) Expiration date of the lease, or length of the lease;

 

(e) Annual contract rent; and

 

(f) Pass through provisions (real estate taxes, and operating expenses, Consumer Price Index Adjustments, options to renew provisions and their terms, and unoccupied areas or vacant space by square foot).

 

334.9Income and expenses reported and attributable to corporations, partnerships, associations. or individuals that do not reflect the business income of the property shall not be considered sufficient for purposes of this section.

 

source

Final Rulemaking published at 25 DCR 10919, 10921 (June 22, 1979), 16 DCRR §102; as amended by Final Rulemaking published at 32 DCR 1352 (March 8, 1985).