State of California Legislation Impact on City Payment. TBC acknowledges that the State of California legislature has in the past adopted certain legislation which diverted to the State of California a portion of Sales Tax Revenues which would otherwise be payable to the City. TBC acknowledges that it is possible that the State of California legislature may enact similar legislation in the future which would cause a corresponding reduction of and/or delay in the payment of the Sales Tax Revenues and that such reduction will cause TBC a corresponding reduction and/or delay in the payment of the payments due to TBC during such time as such legislation is in effect. Furthermore, TBC acknowledges that it is possible that the legislation described above, or some variant thereof, may be enacted and effective during one or more subsequent times during the term of the Agreement and may materially and negatively impact the amount of Sales Tax Revenues and, accordingly, payments to TBC by the City. The City does not make any representation, warranty or commitment concerning the future actions of the State of California legislature with respect to the allocation of Sales Tax Revenues to the City. TBC agrees that it is undertaking its obligations under this Agreement after having considered, and is expressly assuming the risk of, the possibility of the enactment of future legislation. The City acknowledges that the State of California legislature may provide for the payment to the City of other revenues for the purpose of offsetting any losses in Sales Tax Revenues resulting from the enactment of legislation of the type described in this Section
State of California Legislation Impact on City Payment. Xxxxxxxx acknowledges that the State of California legislature has in the past adopted certain legislation which diverted to the State of California a portion of Sales Tax Revenues which would otherwise be payable to the City. Xxxxxxxx acknowledges that it is possible that the State of California legislature may enact similar legislation in the future which would cause a corresponding reduction of and/or delay in the payment of the Sales Tax Revenues and that such reduction will cause Xxxxxxxx a corresponding reduction and/or delay in the payment of the payments due to Xxxxxxxx during such time as such legislation is in effect. Furthermore, Xxxxxxxx acknowledges that it is possible that the legislation described above, or some variant thereof, may be enacted and effective during one or more subsequent times during the term of the Agreement and may materially and negatively impact the amount of Sales Tax Revenues and, accordingly, payments to Xxxxxxxx by the City. The City does not make any representation, warranty or commitment concerning the future actions of the State of California legislature with respect to the allocation of Sales Tax Revenues to the City. Xxxxxxxx agrees that it is undertaking its obligations under this Agreement after having considered, and is expressly assuming the risk of, the possibility of the enactment of future legislation. The City acknowledges that the State of California legislature may provide for the payment to the City of other revenues for the purpose of offsetting any losses in Sales Tax Revenues resulting from the enactment of legislation of the type described in this Section 3.03. The City agrees that, should the California legislature provide for such offsetting revenues, then for purposes of this Agreement and the computation of any payments which may become due to Xxxxxxxx hereunder, the City shall treat any such offsetting revenues which are: (a) indexed to Sales Tax Revenues and offset the loss of Sales Tax Revenues to the City on a dollar for dollar basis; (b) actually received by the City and (c) not subject to any restrictions on use beyond those which are otherwise generally applicable to sales tax revenues received by California municipalities, to be Sales Tax Revenues within the meaning of this Agreement.
State of California Legislation Impact on City Payment. Company acknowledges that the State of California legislature has in the past adopted certain legislation which diverted to the State of California a portion of the Local Sales Taxes and Local Use Taxes which would otherwise be payable to cities in the State, and that it is possible that the State of California legislature may enact other legislation in the future which would cause a reduction of and/or delay in the payment of Local Sales Taxes or Local Use Taxes or a claw back or taking of Local Sales Taxes or Local Use Taxes already in the City's possession, which will cause a corresponding reduction for Company and/or delay in the tax rebate payments to be made under this Agreement ("State Legislation"). Company further acknowledges and agrees that it is possible that the State Legislation may be enacted and effective one or more subsequent times during the Term that may materially and negatively impact the amount of Local Sales Taxes or Local Use Taxes and, accordingly, the tax rebate payments. City does not make any representation, warranty or commitment concerning the future actions of the State of California legislature with respect to the allocation or payment of any Local Sales Taxes or Local Use Taxes to City, City's ability to control or retain Local Sales Taxes or Local Use Taxes allocated or paid to City, or any State Legislation. Company agrees that it is undertaking its obligations under this Agreement after having considered, and is expressly assuming the risk of, the possibility of the enactment of such State Legislation. City covenants not to directly or indirectly cause or support any such State Legislation to be enacted which could result in any such reduction or delay in any tax rebate payment.
