Credits Against Amounts Payable. (a) Lessee shall receive the following credits, on a dollar-for-dollar basis, against the payments in lieu of taxes due under Section 4.1:
Credits Against Amounts Payable. (a) Lessee shall receive the following credits, on a dollar-for-dollar basis, against the payments in lieu of taxes due under Section 4.1: (i) an aggregate of all Ad Valorem Property Taxes paid if payable by Lessee on account of the Project for a period commencing January 1, 2001, and continuing through the termination of the Lease Term; (ii) an aggregate of all sales taxes paid to the State on account of payments of rent by Lessee pursuant to this Agreement. (b) Lessee shall be entitled to take any credits due pursuant to Section 4.3(a) in the year in which such amounts are paid by Lessee. If the credits due Lessee in any one (1) year exceed the PILOT to be paid for that year, any excess credit shall be carried forward and applied against the PILOT for the next succeeding year(s). (c) At such time as the Project shall be legally placed upon the ad valorem tax rolls of the City and the County, with ad valorem taxes assessable to Lessee, the payments in lieu of taxes required herein shall automatically terminate, and Lessee shall pay that portion of the PILOT prorated for the portion of the year the Project was leased by Lessee and thereafter Lessee shall pay such ad valorem taxes as may then be properly assessed to it on account of its ownership of the Project. (d) In the event Lessee's leasehold interest in the Project shall become subject to ad valorem taxes at any time during the Lease Term, the amount of such tax payable by Lessee as a result of such assessment shall be credited against any in lieu of tax payments due under Section 4.1 until such additional tax payments shall have been fully recouped. (e) Not less than thirty (30) days prior to making any payment in excess of One Thousand Dollars ($1,000.00) which Lessee intends to credit against amounts payable in lieu of taxes due under Section 4.1, Lessee shall notify the City and the County of Lessee's intent to credit such payment against amounts payable in lieu of taxes by sending written notice to: Mayor, City of Humboldt Humboldt Municipal Center 0000 Xxxxxxx Xxxxxx Humboldt, TN 38343 and Xxxxxx County Trustee Xxxxxx Xxxxxx Xxxxxxxxxx Xxxxxxx, XX 00000 (f) Credits against the payments in lieu of taxes shall be applied pro- rata against the amounts owed to the city and to the County pursuant to Section 4.1 in the same proportion that the City rate bears to the County tax rate. Section 4.4
