Common use of Taxes, Other Governmental Charges and Utility Charges Clause in Contracts

Taxes, Other Governmental Charges and Utility Charges. The Lessor and the Lessee contemplate that the Facilities will be used for a governmental or proprietary purpose of the Lessee and, therefore, that the Facilities will be exempt from all property-related use and sales taxes presently assessed and levied with respect thereto. In the event the use, possession or acquisition of the Facilities are found to be subject to taxation in any form, the Lessee will pay during the Lease Term, as the same respectively become due, all taxes and governmental charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to the Facilities and any equipment or other property acquired by the Lessee in substitution for, as a renewal or replacement of, or a modification, improvement or addition to the Facilities as well as all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy, and upkeep of the Facilities; that with respect to any governmental charges that may lawfully be paid in installments over a period of years, the Lessee shall be obligated to pay only such installments as are required to be paid during the Lease Term. In the event of the assessment of any taxes on the Facilities, the Lessee shall promptly notify the Lessor of such assessment and provide proof of payment or a sustained protest.

Appears in 3 contracts

Samples: Facilities Lease Agreement, Facilities Lease Agreement, Facilities Lease Agreement

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Taxes, Other Governmental Charges and Utility Charges. The Lessor and the Lessee contemplate that the Facilities Property will be used for a governmental or proprietary purpose of the Lessee and, therefore, that the Facilities Property will be exempt from all property-related use and sales taxes presently assessed and levied with respect thereto. In the event the use, possession or acquisition of the Facilities Property are found to be subject to taxation in any form, the Lessee will pay during the Lease Term, as the same respectively become due, all taxes and governmental charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to the Facilities Property and any equipment or other property acquired by the Lessee in substitution for, as a renewal or replacement of, or a modification, improvement or addition to the Facilities Property as well as all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy, and upkeep of the FacilitiesProperty; that with respect to any governmental charges that may lawfully be paid in installments over a period of years, the Lessee shall be obligated to pay only such installments as are required to be paid during the Lease Term. In the event of the assessment of any taxes on the FacilitiesProperty, the Lessee shall promptly notify the Lessor of such assessment and provide proof of payment or a sustained protest.

Appears in 1 contract

Samples: Sublease Agreement

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