Rate Adjustment Process Sample Clauses
The Rate Adjustment Process clause defines the procedures and conditions under which the rates specified in an agreement may be modified during its term. Typically, this clause outlines the triggers for rate changes, such as inflation, changes in market conditions, or the passage of a certain period, and may require advance notice or mutual agreement before adjustments take effect. Its core practical function is to provide a clear and predictable mechanism for updating rates, thereby reducing disputes and ensuring that pricing remains fair and relevant over time.
Rate Adjustment Process. The combined Taxes Due for all the Streamlined States that will result in a rate adjustment shall include only sales and use taxes generated from sales sourced in accordance with the sourcing rules in Article III of the SSUTA to a Streamlined State in which the Seller is a Volunteer Seller. As the amount of Taxes Due from each Volunteer Seller reaches a rate adjustment level, adjustments to compensation shall be made as soon as is practicable to avoid over compensation, but no later than the next tax remittance to the Streamlined States after the level has been reached. For example, if taxes are remitted monthly and the total amount of Taxes Due from a Volunteer Seller to all Streamlined States combined rises from $225,000 at the end of one month to $300,000 at the end of the following month, the Contractor shall receive eight percent (8%) of $25,000 ($2,000) and seven percent (7%) of $50,000 ($3,500) and the remainder ($69,500) shall be remitted to the Streamlined States for that month. Sales and use taxes on sales by that Seller sourced to the Streamlined States in which the Seller is not a Volunteer Seller shall be disregarded in determining when a rate adjustment level has been reached. When remitting taxes for a reporting period in which an adjustment has been made, the Contractor shall make its best efforts to adjust the compensation rate in a manner that fairly allocates the rate change among the Streamlined States. Unless the Contractor uses a method that consistently applies the rate change more precisely, the adjustment shall be applied proportionately among the Streamlined States regardless of which individual purchases were made before or after the adjustment level was reached during the period. In the example, unless the Contractor uses a method for a more accurate allocation, the Contractor would charge all Streamlined States eight percent (8%) on one third of the taxes owed to each of them and seven percent (7%) on two-thirds of the taxes owed to each of them for that month.
Rate Adjustment Process. 1. The Capitation Rates shall be calculated annually to be effective on the first day of the Department's fiscal year. The Department will make its best effort to determine the rate prior to the start of the fiscal year. If the Department is unable to determine the rate before July 1, payment will continue to be made at the previous year's Capitation Rate until such time as the new rate has been established
2. If payment has been made at the previous year's Capitation Rate during any portion of a new fiscal year, the Department will make a payment adjustment in the amount that results from the difference between the new Capitation Rate and the previous year's Capitation Rate.
Rate Adjustment Process. 22 CONTRACTOR shall deliver to CITY financial information for the specific 23 services performed under this Agreement for the preceding calendar year. Such 24 financial information shall be the information described in the “Non-Processing 25 Operating Cost Statement – Description” portion of Exhibit 2 (“Refuse Rate Index”) and 26 shall be in the format described in Exhibit 2, as may be revised by CITY from time to 27 time. CONTRACTOR agrees to provide the City a description of all items classified as 28 “other” for the purpose of making the indexed adjustment calculation. If CONTRACTOR 29 fails to submit the financial information in the required format prior to February 15th, it is 30 agreed that CONTRACTOR shall be deemed to have waived the right to the RRI rate 31 adjustment for that year. CONTRACTOR’s failure to provide the financial information 32 shall not preclude CITY from applying the RRI using the prior year’s financial data, or 33 pro forma data if no prior year financial data is available, if that application would result 34 in a decrease in the affected service rates.