Privilege Tax Clause Samples
The Privilege Tax clause defines the obligation of a party to pay taxes that are imposed as a result of the privilege of conducting business or engaging in certain activities under the contract. Typically, this clause clarifies that such taxes—distinct from income or sales taxes—are the responsibility of the party benefiting from the privilege, such as a contractor or licensee. For example, if a state imposes a privilege tax on the right to operate within its jurisdiction, the party conducting business there must pay it. The core function of this clause is to allocate responsibility for these specific taxes, preventing disputes over who bears the cost and ensuring compliance with applicable tax laws.
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Privilege Tax. Notwithstanding anything to the contrary contained in the Lease, including Section 19.2 of the Lease, effective as of (but not with respect to any period prior to) August 1, 2014, Lessee shall be responsible for (and Taxes shall be deemed to expressly include) the payment of (A) one hundred percent (100%) of the privilege/sales taxes due from Lessor to the City of Phoenix and/or Maricopa County with respect to payments of Base Rent made by Lessee to Lessor pursuant to the Lease for the Property, and (B) one hundred percent (100%) of the privilege/sales taxes due from Lessor to the City of Phoenix and/or Maricopa County with respect to payments of Taxes paid by Lessee to, or on behalf of, Lessor pursuant to the Lease for the Property, and (C) if the State of Arizona institutes a privilege/sales tax that is specifically stated to be in lieu of any other Tax currently due and being paid by Lessee under the Lease, one hundred percent (100%) of the privilege/sales taxes due from Lessor to the State of Arizona (collectively, the "Privilege Taxes"). Notwithstanding the foregoing, if Lessor exercises its remedy under Section 18.1 of the Lease to cure any Lessee default after the expiration of the applicable notice and cure period, and prior to the exercise of such remedy, Lessor shall also have given Lessee a second notice that shall specifically state that the costs to be reimbursed by Lessee in connection with such cure shall include any privilege/sales taxes due from Lessor to the City of Phoenix and/or Maricopa County (and/or the State of Arizona, if the provisions of subsection (C) above are applicable) on the amount to be reimbursed by Lessee for Lessor's costs incurred in connection with such cure, then in such case such privilege/sales taxes shall be considered to be a part of "Privilege Taxes." All other privilege/sales taxes or similar taxes due from or assessed against Lessor by any governmental entity with respect to any other amounts paid to, or on behalf of Lessor, shall remain the obligation of Lessor under the Lease. Lessee shall only be responsible to reimburse Lessor for payments of the Privilege Taxes that have been made by Lessor to the appropriate taxing authorities (based on payments made by Lessee to Lessor in accordance with the Lease), which reimbursement shall be made by Lessee within ten (10) Business Days after receipt of an invoice therefor.
Privilege Tax. Is a Privilege Tax License already established? Yes ( ) No ( )
Privilege Tax. Seller has paid to the City of Phoenix and the Arizona Department of Revenue all privilege taxes owing on rental payments previously -11- received under the Leases as of the Execution Date and Seller will continue to pay all privilege taxes owing on rental payments collected under the Leases prior to Closing to the extent owing prior to Closing.
Privilege Tax. The City has retained and shall continue to retain the right, as 39 permitted by Oregon law, to charge a privilege tax based on a percentage of the Gross 40 Revenue in addition to the payment amounts set forth in subsection (A). As of the date of 41 this Franchise, the City has enacted a 1½ percent privilege tax. The City shall provide 42 Franchisee at least ninety (90) days’ notice prior to any increase in privilege tax becoming 43 effective. Franchisee shall follow state regulations regarding the inclusion of such privilege 44 tax as an itemized charge on the electricity bills of its customers within the City.
Privilege Tax. All Arizona state and local taxes are to be paid by Tenant and shall be added to all payments due by Tenant under the terms of the Lease and this Amendment.
Privilege Tax. Tenant shall pay to Landlord the Privilege Tax, as set forth in Section 1.01(i), which shall be a percentage of the Minimum Annual Rental and Additional Rent paid by Tenant to Landlord.
Privilege Tax. Lessee shall be subject to the applicable provisions of Section 59-4-101 et. seq. of the Utah Code Annotated, 1953, as amended (or to such subsequent legislation as may be applicable), and all the terms and conditions as required in said law are made a part of this Lease.
Privilege Tax. At the time of paying rent, Lessee shall also pay County the privilege tax on ▇▇▇▇▇▇’s Rent levied under Section 212.031, Florida Statutes, in the amount that may be required by that law from time to time, the current amount being 5.7%, plus applicable discretionary sales surtax in the current amount of 0.5%, unless otherwise exempt.