Reductions in Payment of Taxes Upon Diminution in Value Sample Clauses
The 'Reductions in Payment of Taxes Upon Diminution in Value' clause establishes that if the value of a property or asset decreases, resulting in a lower tax assessment, the party responsible for paying those taxes is entitled to a corresponding reduction in their tax payment obligations. For example, if a leased property suffers damage or market conditions change, leading to a reassessment and lower property taxes, the tenant or lessee would only be required to pay the reduced tax amount. This clause ensures that tax payments remain fair and proportionate to the actual value of the property, preventing overpayment and aligning financial responsibilities with current valuations.
Reductions in Payment of Taxes Upon Diminution in Value. Investment Maintenance Requirement In the event of a Diminution in Value of the Economic Development Property, the Payment in Lieu of Taxes with regard to the Economic Development Property shall be reduced in the same proportion as the amount of such Diminution in Value bears to the original fair market value of the Economic Development Property as determined pursuant to Step 1 of Section 4.01(a) hereof; provided, however, that if at any time subsequent to the end of the Investment Period, the total value of the Project remaining in the County based on the original income tax basis thereof (that is, without regard to depreciation), is less than the FILOT Act Minimum Investment Requirement, then beginning with the first payment thereafter due hereunder and continuing until the Termination Date, the Project shall no longer be entitled to the incentive provided in Section 4.01, and the Company and any Sponsor Affiliate shall therefore commence to pay regular ad valorem taxes thereon, calculated as set forth in Section 4.01(b) hereof.