Common use of Tax Reduction Clause in Contracts

Tax Reduction. Landlord and ▇▇▇▇▇▇ acknowledge that Tenant is a governmental entity, and as such, may be entitled to pursue an exemption for certain Taxes which would otherwise be payable for the Premises. Tenant may, at Tenant’s sole cost and expense, elect to apply for an exemption from any Taxes otherwise payable hereunder based upon ▇▇▇▇▇▇’s status as a governmental entity (a “Tax Exemption”) directly from the applicable taxing authority. Landlord will not be required to incur any costs in connection with ▇▇▇▇▇▇’s application for any Tax Exemption. In the event Taxes are reduced as a result of a Tax Exemption, ▇▇▇▇▇▇’s Proportionate Share of Taxes otherwise payable by Tenant pursuant to this Lease will be decreased by the amount of the reduction or credit in Taxes actually received by or credited to Landlord as a result of ▇▇▇▇▇▇’s Tax Exemption. In the event Landlord receives a reimbursement of any Taxes previously paid by ▇▇▇▇▇▇ as a result of a Tax Exemption, Landlord will reimburse Tenant for the amount of such reimbursement or credit, up to the amount of Taxes previously paid by Tenant for the applicable tax year.

Tax Reduction. Landlord and ▇▇▇▇▇▇ Tenant acknowledge that Tenant is a governmental entity, and as such, may be entitled to pursue an exemption for certain Taxes which would otherwise be payable for the Premises. Tenant may, at Tenant’s sole cost and expense, elect to apply for an exemption from any Taxes otherwise payable hereunder based upon ▇▇▇▇▇▇Tenant’s status as a governmental entity (a “Tax Exemption”) directly from the applicable taxing authority. Landlord will not be required to incur any costs in connection with ▇▇▇▇▇▇Tenant’s application for any Tax Exemption. In the event Taxes are reduced as a result of a Tax Exemption, ▇▇▇▇▇▇Tenant’s Proportionate Share of Taxes otherwise payable by Tenant pursuant to this Lease will be decreased by the amount of the reduction or credit in Taxes actually received by or credited to Landlord as a result of ▇▇▇▇▇▇Tenant’s Tax Exemption. In the event Landlord receives a reimbursement of any Taxes previously paid by ▇▇▇▇▇▇ Tenant as a result of a Tax Exemption, Landlord will reimburse Tenant for the amount of such reimbursement or credit, up to the amount of Taxes previously paid by Tenant for the applicable tax year.