Property Tax Escalation Sample Clauses
A Property Tax Escalation clause allows a landlord to pass on increases in property taxes to the tenant during the lease term. Typically, this clause specifies a base year or amount, and any property tax increases above this threshold are billed to the tenant, either as a lump sum or through adjusted rent payments. Its core function is to protect the landlord from rising property tax costs, ensuring that tenants share in the financial impact of tax increases on the leased property.
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Property Tax Escalation. In addition to the payments required by the previous subparagraphs of this paragraph, commencing on the first anniversary of the Commencement Date, Tenant shall pay as Additional Rent to Landlord one-twelfth (1/12) of the amount, if any, by which (a) estimate of the Property Taxes Allocable to the Premises for the current Year exceeds the Property Tax Base Amount. This sum shall be paid in advance on or before the first day of each calendar month of the Lease Term. Promptly after the close of each Year during the Lease Term (provided that Landlord shall use reasonable efforts to effect delivery by April 1sl of each Year), Landlord shall deliver to Tenant a written statement setting forth (1) actual Property Taxes Allocable to the Premises for the preceding Year, (2) the difference between the amount referred to in clause (1) and the Property Tax Base Amount and (3) differential between the amount referred to in clause (2) and the sum of the tentative monthly payments toward such amount made by Tenant. If the differential referred to in clause (3) of the previous sentence represents an underpayment by Tenant, such differential shall be paid to Landlord within thirty (30) days after delivery of Landlord’s written statement to Tenant; if such differential represents an overpayment by Tenant, Landlord shall, at its option, either credit such overpayment to the installment(s) of Additional Rent next coming due from Tenant or refund such overpayment to Tenant within thirty (30) days after Tenant’s concurrence in the amount due as a refund. If the Lease Term begins or ends on a day other than the beginning or end of a Year, the amount due as described in clause (2) of this subparagraph shall be prorated on a per diem basis with reference to the Year. The provisions of this subparagraph shall survive the expiration or other termination of this Lease.