Additional or Subsequent Taxes Sample Clauses
The "Additional or Subsequent Taxes" clause defines how parties will handle new or increased taxes that arise after a contract is signed. Typically, this clause specifies whether one party must pay for any extra taxes imposed by government authorities on the goods, services, or transactions covered by the agreement, or if the cost is to be shared or renegotiated. For example, if a new sales tax is introduced or an existing tax rate increases, the clause determines who bears the financial responsibility. Its core function is to allocate the risk of unforeseen tax changes, ensuring that both parties understand their obligations and preventing disputes over unexpected tax liabilities.
Additional or Subsequent Taxes. Shipper shall reimburse Gatherer for Shipper’s allocable share of (a) any additional, increased, or subsequently applicable taxes (other than income taxes and any real or personal property or other ad valorem tax imposed on any Gathering System) implemented or imposed after the effective date of this Agreement that are lawfully levied on or paid by Gatherer with respect to its performance under this Agreement or on any part of a Gathering System and (b) any new or subsequently applicable assessments, fees or other charges implemented or imposed on Gatherer with respect to the services provided hereunder, including any such assessments, fees or other charges arising from any carbon tax or cap and trade law, rule or regulation adopted after the effective date. Shipper’s allocable share of any such amounts shall be based on the ratio that Shipper’s Gas (expressed in Mcfs) received at the Receipt Points in the State or States in which such amounts are imposed bears to the total volume of Gas (expressed in Mcfs) received at such Receipts Points, in each case during the applicable period for which such taxes, assessments, fees or other charges are incurred or imposed, as the case may be.