Contesting Taxes Clause Samples
The Contesting Taxes clause allows a party to challenge or dispute the validity or amount of taxes assessed in connection with a contract or property. Typically, this clause permits the party to withhold payment of the contested tax while pursuing legal or administrative remedies, provided that such action does not result in penalties, liens, or other adverse consequences for the other party. Its core function is to protect parties from paying taxes they believe are incorrectly assessed, while ensuring that the other party is not exposed to additional risk or liability during the dispute process.
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Contesting Taxes. In the event Tenant believes it is no longer obligated to pay or otherwise disputes any taxes (including, but not limited to, Taxes - Equipment and Taxes – Other): (a) for which Tenant has been assessed, (b) has been notified by Landlord is Tenant’s responsibility, or (c) for which Landlord is seeking reimbursement from Tenant, Tenant shall have the right, at its option and at its sole cost and expense, to promptly contest such tax with the appropriate governmental authority; provided, however, that no such action shall be utilized to exempt Tenant from paying taxes if the end result is that the taxes must be paid by Landlord. If Landlord has already paid such tax, Tenant shall pay such amount to Landlord in accordance with this Lease after Landlord’s demand therefor (which demand shall include reasonable detail of such amounts assessed or levied), and Tenant may, at its option and at its sole cost and expense, seek reimbursement from the applicable governmental authority. Upon advance notice to Landlord, Tenant shall also have the right, at its cost and expense, to initiate a proceeding in its own name, and dispute or contest, in good faith, any assessment of taxes applicable to Tenant with the relevant taxing authority (a “Tax Contest”). If required by Applicable Law, Landlord shall join in or initiate such proceeding at Tenant’s request, at T▇▇▇▇▇’s sole cost and expense. Tenant will give Landlord reasonable notice of, and information pertaining to, such Tax Contest and regular progress reports with respect thereto. The Parties shall cooperate together in good faith with respect to any such Tax Contests; provided that the foregoing will be at no material cost to Landlord.
Contesting Taxes. .1 Tenant may, at its expense, appeal or contest the taxes, assessments and other amounts payable as described in section 6.2 but such appeal or contest shall be limited to the assessment of the Premises alone and not to any other part of the Building or the Lands and provided Tenant first gives Landlord written notice of its intention to do so, and consults with Landlord, and provides such security as Landlord requires and obtains Landlord’s prior written approval.
.2 Landlord reserves the exclusive right to appeal or contest any taxes payable by Landlord, including Realty Taxes.
Contesting Taxes. Lessee may contest the validity of any tax, assessment, or fee for which ▇▇▇▇▇▇ is responsible under this Lease, as long as such contest is pursued in good faith and with due diligence, and ▇▇▇▇▇▇ has paid the obligation in question or posted the financial assurance, discussed below, in the event of an adverse determination. Lessee will not be in default of Section 11.1, provided that written notice is given to Lessor of Lessee’s intention to contest the tax, assessment, or fee; and, provided that Lessee furnishes Lessor with a bond made by a surety company qualified to do business in the state of Idaho, or pays cash to a recognized escrow agent in the County in which the Leased Premises are located, or as otherwise agreed in writing by Lessor, equal to one hundred and ten percent (110%) of the amount of the tax or obligation Lessee intends to contest, conditioned on payment when the validity of such tax or obligation has been determined. Lessee shall give Lessor written notice and post the financial assurance not later than sixty (60) calendar days before the contested tax, assessment, or fee is due.
Contesting Taxes. Tenant shall have the right to contest or review by legal proceedings, as permitted under applicable law, any assessed valuation, real estate tax, or assessment; provided that, unless Tenant has paid such tax or assessment under protest, Tenant shall furnish to Landlord (a) proof reasonably satisfactory to Landlord that such protest or contest may be maintained without payment under protest, and if not, (b) a surety bond or other security reasonably satisfactory to Landlord securing the payment of such contested item or items and all interest, penalty and cost in connection therewith upon the final determination of such contest or review. Landlord shall, if it determines it is reasonable to do so, and if so requested by Tenant, join in any proceeding for contest or review of such taxes or assessments, but the entire cost of such joinder in the proceedings (including all costs, expenses, and attorneys’ fees reasonably sustained by Landlord in connection therewith) shall be borne by Tenant. Any amount already paid by Tenant and subsequently recovered as the result of such contest or review shall be for the account of Tenant.
Contesting Taxes. Tenant and Landlord shall cooperate in good faith with one another to contest or review in good faith by legal proceedings, as permitted under applicable law, any assessed valuation, real estate tax, or assessment with respect to the Premises; provided that, unless either party has paid such tax or assessment under protest, Tenant shall furnish to Landlord proof reasonably satisfactory to Landlord that such protest or contest may be maintained without payment under protest. If requested by
Contesting Taxes. If lessee shall in good faith desire to contest the validity or amount of any tax, assessment, levy, or other governmental charge herein agreed to be paid by lessee, lessee shall be permitted to do so, and to defer the payment of such tax or charge, the validity or amount of which lessee is so contesting, until final determination of the contest, on giving to lessor written notice thereof prior to the commencement of any such contest, which shall be at least. thirty (30) days prior to delinquency, and on protecting lessor on demand by a good and sufficient surety bond against any such tax, levy, assessment, rate, or governmental charge, and from any costs, liability, or damage arising out of any such contest.
Contesting Taxes. Tenant shall have the right to contest any Taxes, at its own cost and in its own name, and Landlord shall not pay any such Taxes; provided, however, that Tenant shall take such steps as may be required to perfect the contest, including payment of the Taxes under protest prior to an appeal of adverse determination of the contest. Upon final determination of any such contest (and if the Taxes have not already been paid under protest), Tenant shall pay the Taxes for which it is responsible hereunder as they are finally determined and all penalties, interest, costs, and expenses which may thereupon be due or have resulted therefrom. If Tenant contests any Taxes and such contest interferes with any proposed sale, financing or refinancing affecting the Premises, which Landlord has either commenced or is about to commence, upon ▇▇▇▇▇▇▇▇'s written request, Tenant shall either furnish to Landlord security in the amount of such contested Taxes, plus estimated costs and interest, or a bond of a responsible corporate surety in such amount.
Contesting Taxes. Tenant and Landlord shall cooperate in good faith with one another to contest or review in good faith by legal proceedings, as permitted under applicable law, any assessed valuation, real estate tax, or assessment with respect to the Premises; provided that, unless either party has paid such tax or assessment under protest, Tenant shall furnish to Landlord proof reasonably satisfactory to Landlord that such protest or contest may be maintained without payment under protest. If requested by ▇▇▇▇▇▇, Landlord shall join in any proceeding for contest or review of such taxes or assessments, but the entire cost of the proceedings shall be paid by ▇▇▇▇▇▇. Notwithstanding the foregoing, if the Premises are included in a tax parcel with o t h e r land owned or leased by Landlord, then if requested by Landlord, Tenant shall join in any proceeding for contesting such taxes or assessments and the entire costs of the proceedings shall be allocated between Landlord and Tenant in the same percentages as the taxes as described in Section 3.2(a).
Contesting Taxes. If Landlord contests any Taxes levied or assessed during the Term, Tenant shall pay to Landlord that portion of all costs incurred by Landlord in connection with such contest, pursuant to the formula set forth in Section 9.1(c) for the allocation of Taxes. If Landlord receives a refund pursuant to its contest of any Taxes, then, provided Tenant has paid its share of the total Taxes and its share of the costs incurred by Landlord in connection with such contest as required by this Article 9, Landlord shall reimburse Tenant that portion of the total refund prorated in the same manner as set forth in Section 9.1(c).
Contesting Taxes. LANDLORD agrees to use its reasonable and affirmative best efforts to contest any tax, fee or assessment wholly or partially paid or reimbursed by TENANT to the same extent as LANDLORD would contest the same if LANDLORD had paid the tax, fee or assessment itself without reimbursement. LANDLORD shall reimburse TENANT for TENANT Proportionate Share of any and all amounts recovered by LANDLORD as a result of such contest.