Exemption from Certain Taxes Clause Samples
The "Exemption from Certain Taxes" clause specifies that one party will not be responsible for paying specific types of taxes related to the agreement. Typically, this clause identifies which taxes are excluded—such as income, franchise, or property taxes imposed on the other party—and clarifies that each party remains liable for their own tax obligations. Its core function is to prevent disputes by clearly allocating tax responsibilities and ensuring that neither party is unexpectedly burdened with taxes that are not their own.
Exemption from Certain Taxes. The prices stated in this Contract include all federal, state, county and municipal taxes in effect at the date set for the opening of bids, except manufacturers' and retailers' federal excise taxes and state sales and occupation taxes directly applicable to the completed items covered under this Contract and, upon the request of Contractor, the Authority will issue appropriate tax exemption certificates with respect to such excluded taxes.