Public comments for: Registration Statements for Ground and Second Floor Commercial Premises

Comments

Comment:
I have advised owners on RPIE filings for many years. I expect many of clients will ask me how to register their storefronts. Below are seven concerns I have. (1) I'm not commenting on whether I think it's fair to charge people to register their storefronts on DOF's RPIE when owners have been in the habit of filing RPIEs for many years without paying filing fees. But I do think DOF invoicing owners for the $30 storefront registration filing fee will be an administrative nightmare. Is the fee going on the tax bill? Will it be lienable? Will non-payment accrue interest? (2) If an owner doesn't have ground/second floor commercial space but DOF *thinks* she does, and the owner doesn't register, will she be charged the full RPIE non-filing penalty or the failure to claim an exclusion RPIE penalty? How will DOF know which penalty to charge her? Should instead she affirmatively file the storefront registration and say that she doesn't have such commercial space (i.e. file a claim of exclusion), and if so, will she have to pay the $30 filing fee to do so? How is the owner supposed to know whether or not DOF thinks she has commercial space? (3) In the definition of "commercial premises," how do you define "could be occupied or used?" Do you judge the "could be" possibility by the Certificate of Occupancy? What if the building has no CofO? If an owner rents the second floor for office use and DOF thinks it "could be" used for retail, then she has to register that space? (4) In the definition "offering or selling goods at retail," if a barbershop doesn't sell hair gel and only cuts hair, would you consider that not retail because they are selling services, not goods? (5) The law obligates the owner to register. What if the owner is the ground lessor but doesn't operate the property because his net lessee subleases the property? The owner would have no knowledge of the rent roll. How is he supposed to register? (6) How do you handle commercial condo lots? If there are two retail tax lots in a building, do you charge the filing fee for each one separately? Or do you invoice the building billing lot 7501? If the two lots are owned by same owner, or by two separate owners, is the answer different? (7) In a co-op, the co-op corporation owns the building, but the retail is usually subleased by a shareholder. The co-op owner wouldn't have access to the retail information, so how would they be able to register if the shareholder won't give them the information?
Agency: DOF
Comment:
What is the purpose of this requirement? What will this information be used for going forward?
Agency: DOF