Tax Rent Clause Samples
The Tax Rent clause defines how property taxes and similar governmental charges related to leased premises are allocated between the landlord and tenant. Typically, this clause specifies whether the tenant is responsible for paying all or a portion of real estate taxes, assessments, or other charges, either directly or as additional rent. For example, in a net lease, the tenant may pay property taxes directly, while in a gross lease, the landlord may include these costs in the base rent. The core function of this clause is to clearly assign responsibility for tax payments, preventing disputes and ensuring both parties understand their financial obligations regarding property taxes during the lease term.
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Tax Rent. A. Tenant shall pay to Landlord, as Additional Rent, Tax Rent in an amount equal to the product obtained by multiplying Taxes by a fraction, the numerator of which shall be the Floor Space of the Premises excluding Storage Space, if any, and the denominator of which shall be the portion of the aggregate leased and occupied Floor Space in the Shopping Center which is included in the assessment which constitutes the basis for the Taxes, but excluding Storage Space, if any, buildings or areas occupied by Department Stores and Specialty Stores, stores not fronting on the enclosed mall, and temporary kiosks; provided, however, that Tenant's Tax Rent for any year shall not exceed the amount which would otherwise be payable by Tenant hereunder if the denominator of said fraction were [***] percent of the Gross Leaseable Area of that portion of the Shopping Center included in the assessment, exclusive of Department Stores, Specialty Stores, stores not fronting on the enclosed mall, and temporary kiosks. Tax Rent shall be payable at least [***] days prior to the due date of any Taxes or installment thereof; however, Landlord may, if it so elects, collect Tax Rent from Tenant on a monthly basis, in which event Tenant shall pay, with each monthly installment of Fixed Rent, one-twelfth (1/12) of the annual amount estimated by Landlord to be due hereunder. In the event Taxes for the then current tax year are not known, monthly installments shall be based on the preceding tax year with immediate adjustment as soon as current taxes become known. If at the time any Taxes or installments are required to be paid, the amount of Tenant's previously made monthly payments is insufficient to pay Tenant's share, Tenant shall pay such deficiency within [***] days after demand therefor. In the event of any excess, it shall be credited and applied to future Tax Rent payments, except that any excess in the last year of the Term shall be refunded at the end of the Term.
B. Should the taxing authority include in Taxes as a separately stated item the value of any improvements made by or for the benefit of Tenant, or include machinery, equipment, fixtures, inventory or other personal property or assets used by Tenant in the Premises, then Tenant shall pay the entire tax attributable to such items.
C. Nothing herein contained shall be construed to include as a tax which shall be the basis of Tax Rent, any inheritance, estate, succession, transfer, gift, franchise, corporation, income or p...
Tax Rent. Tenant shall pay to Landlord, as “Tax Rent”, ▇▇▇▇▇▇’s Pro Rata Share specified in Section 1.2 of the amount of taxes, assessments, sales or use taxes imposed with respect to rent, sewer entrance fees, and other public charges (together called “Taxes”), levied, assessed, or imposed at any time by any governmental authority upon or against the Building and Lot and personalty or taxes in lieu thereof in any Lease Year or Partial Lease Year. Taxes shall not include franchises, estate, inheritance, succession, transfer, income or excess profits taxes assessed on Landlord. Tenant shall pay all real and personal property taxes attributable to its signs or personal property and all of any increase in Taxes on the Building and Lot which shall result from alteration, addition or improvement which Tenant shall make to the Premises.
Tax Rent. The term "Taxes" shall mean the aggregate of the real estate taxes, assessments and other governmental charges and levies, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind or nature whatsoever (including without limitation assessments for public improvements or benefits and interest on unpaid installments thereof) which may be levied, assessed or imposed or become liens upon or arise out of the use, occupancy or possession of the land, buildings, leasehold improvements, betterment’s, and other permanent improvements within or to the Landlord's property from time to time. However, if at any time during the Lease Term the methods of taxation prevailing at the commencement of the Lease Term shall be altered so that in addition to or in lieu of or as a substitute for the whole or any part of the Taxes now levied, assessed or imposed on real-estate as such there shall be levied, assessed or imposed: (i) a tax on the rents received; or (ii) a license fee measured by the rents receivable by Landlord; or (iii) a tax or license imposed upon Landlord which is otherwise measured by or based in whole or in part upon the real-estate, then the same shall also be within the definition of the term “Taxes" above. Landlord covenants that it will pay, when due, all Taxes, imposed on the tax lot wherein the Demised Premises are situated. Beginning on the first day of the thirteenth (13th) month after the Commencement Date and adjusted annually thereafter, Tenant shall pay to Landlord an amount equal to Tenant's proportionate share of any increase(s) in such Taxes over the Base Year ("Tax Rent") which shall be determined by a fraction, the numerator of which shall be the Total Leased Area of the Demised Premises( 3,855 sq. ft.), and the denominator of which shall be the Total Area within the Buildings in the Project (21,325 sq. ft.), which is currently equal to 18.08%. Such amount shall be fairly and equitably prorated for any partial lease year during the Lease Term. Tenant's Tax Rent (as the same may be subsequently increased or decreased) shall be paid to Landlord in equal monthly installments in advance on the first day of each calendar month. If, on the first day of the anniversary date the amount of Taxes payable during the then current year shall have not been determined by the taxing authorities, then the Tax Rent then payable by Tenant shall be estimated by Landlord and be subject to immediate (i) adjustment when the amount of such...
Tax Rent. In addition to the Fixed Rent, Tenant shall pay, prior to delinquency, all Real Property Taxes (sometimes referred to herein as Tax Rent). "Real Property Taxes" shall mean real and personal property taxes, LID's, assessments, and other governmental impositions and charges of every kind and nature, now or hereafter imposed, including surcharges with respect thereto, which may during the Term of this Lease be levied, assessed, imposed, or otherwise become due and payable with respect to the Building, including tenant improvements and the Building Parcel and all improvements, fixtures, and equipment thereon, or the use, occupancy or possession thereof; taxes on property of Tenant; and any taxes levied or assessed in addition to, in lieu of, or as a substitute for, in whole or part, taxes now levied or assessed or any other tax upon owning, leasing or rents receivable by Landlord from the Building, but not including any federal or state income tax imposed on Landlord.
Tax Rent. Tenant's Pro Rata Share of Taxes. Landlord estimates, without any representation or warranty but in good faith based on Landlord's experience with the Shopping Center, that Tenant's Pro Rata Share of Taxes for the first Lease Year will be approximately $1.04 per square foot. (See Section 17.2).
Tax Rent. Tenant shall pay Tax Rent as provided in Article 7.
Tax Rent. Tenant shall pay Tenant's Pro Rata Share of Taxes in excess of Tax Base ("Tax Rent"). Taxes shall include all real estate taxes, assessments, sales or use taxes, sewer entrance fees, and other public charges on or relating to the Property including, without limitation, the Building, other improvements, land and personalty, taxes or rentals, and taxes in addition to or in lieu of existing taxes, foreseen and unforeseen ordinary and extraordinary, and all costs related to attempts to secure a refund or abatement (together called "Taxes"); provided Taxes shall not include franchise, estate, inheritance, succession, transfer, income or excess profits taxes assessed on Landlord. Tenant also shall pay before the due date all taxes attributable to its signs or personal property, and all Tax increases resulting from ▇▇▇▇▇▇'s Improvements to the Premises. Tenant's Pro Rata Share shall be based upon Taxes "as abated" provided Landlord first shall receive from any Tax refund all costs of securing the refunds and, to the extent Tenant paid Taxes for which the refund was received, Tenant then shall be entitled to its Pro Rata Share of the balance. Landlord shall have sole control of all tax abatement proceedings, and the pendency of abatement proceedings or ▇▇▇▇▇▇▇▇'s withholding of tax payments shall not affect Tenant's obligation to pay Taxes as provided herein. If the Property or the Premises is not separately assessed, Landlord shall reasonably determine Tenant's Pro Rata Share of Taxes based on the assessor's worksheet and other reasonably available information. Tax Rent shall be paid to Landlord monthly with Base Rent in the amount which Landlord estimates, from time to time, will represent Tenant's Tax Rent. Landlord shall notify Tenant of its actual Pro Rata Share after receipt of a Tax bill, and any excess paid by Tenant shall be applied to Tenant's next Tax Rent payment or refunded, at Landlord's election, or Tenant shall pay any deficiency within 15 days of such notice.
Tax Rent. Tenant shall pay to Landlord, as Tax Rent, Tenant's Pro Rata Share of the amount by which taxes, assessments, sales or use taxes imposed with respect to rent, sewer entrance fees, and other public charges (together called "Taxes"), levied, assessed, or imposed at any time by any Governmental authority upon or against the Center including the buildings therein, the associated land and personalty or taxes in lieu thereof in any lease year or partial lease year during the Term exceed Taxes for the period from July 1, 1997 to June 30, 1998; provided, however, that Taxes shall not include franchises, estate, inheritance, succession, transfer, income or excess profits taxes assessed on Landlord. Notwithstanding the foregoing, Tenant shall pay all real and personal property taxes attributable to its signs or personal property and all of any increase in Taxes on the Center which shall result from alteration, addition or improvement which Tenant shall make to the Leased Premises.
Tax Rent. 4.1 For the purposes of this Article 4 and this Lease, the following words and phrases shall have the meaning indicated:
Tax Rent. 7 5. Operating Expense Rent ........................................................ 9