Payment in Lieu of Personal Property Taxes Clause Samples

The "Payment in Lieu of Personal Property Taxes" clause establishes an obligation for a party, typically a lessee or occupant, to make payments to the property owner or a governmental entity as a substitute for traditional personal property taxes. In practice, this means that instead of paying standard property taxes assessed on personal property, the responsible party pays a predetermined amount or follows a specific formula to calculate the payment. This arrangement is often used when the property is exempt from taxation or when the parties wish to simplify tax-related obligations. The core function of this clause is to ensure that the property owner or local government receives compensation equivalent to what would have been collected through personal property taxes, thereby maintaining revenue streams and clarifying financial responsibilities.
Payment in Lieu of Personal Property Taxes. (a) During the PILOT Term, ▇▇▇▇▇▇▇▇▇ agrees to pay to the Town and the Town agrees to accept from Developer, annual payments in lieu of personal property taxes that would otherwise be assessed by the Town against the PILOT Property and the Project and due and payable by the Developer to the Town (the “ Payments in Lieu of Taxes”), which Payments in Lieu of Taxes shall be made annually in the amounts set forth in the attached Exhibit C. Each Payment in Lieu of Taxes to be paid by Developer to the Town hereunder will be noted on an annual bill issued by the Town to Developer in May of each respective year during the PILOT Term or the PILOT Extension Terms, as applicable. Developer shall pay the Town the Payments in Lieu of Taxes within 30 days of the issuance of each such bill (the “Due Date”). (b) In addition, in the event that this Agreement is approved at the special meeting to be held December 14, 2016, and the Town is authorized to enter into this Agreement, then Developer agrees to make a one-time payment to Town in the amount of Ten Thousand Dollars ($10,000.00) to be paid to the Town as payment for its legal fees and ancillary expenses related to this Agreement on or before May 15, 2017. In the event this Agreement is not approved at the special meeting, then no payment is owed to the Town and this Agreement shall be deemed null and void.
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Payment in Lieu of Personal Property Taxes. A. Developer agrees to make annual payments to the Town in lieu of personal property taxes (“PILOT”) beginning in year 2 of this Agreement. The PILOT payment for each contract year shall be calculated by applying the actual personal property tax rate for the contract year listed in column 1 of the Table below to the personal property value listed in column 2 of the Table below. Contract Year Personal Property Value Projected Annual Property Tax1 1 $8,528,098 No PILOT Payment in Year 12 1 This column is for reference purposes, only, based on a projected future personal property tax rate. The actual PILOT payment due pursuant to this Agreement shall be the amount calculated by applying the actual personal property tax rate for the contract year to the personal property value listed in column 2 for that contract year.
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Payment in Lieu of Personal Property Taxes. Developer agrees to make payments to the Town in lieu of personal property taxes for a period of twenty (20) consecutive years (hereinafter the "Term"), commencing with Fiscal Year 2022 (the first quarterly payment date being August 1, 2021), and ending with fiscal tax year 2042 (the last quarterly payment date being May 1, 2042), the amount per year in Exhibit
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Payment in Lieu of Personal Property Taxes. Developer agrees to make annual payments to the Town in lieu of personal property taxes attributable to the Project for a period of twenty (20) consecutive years, as set forth below. Each annual payment will be in the amount of $8500 per MW (DC) (escalated at 1.5% on each anniversary of the Commencement Date (as defined below)). Assuming a Project nameplate capacity of 422 kw (DC), annual payments shall be as set forth in Exhibit B (each, an “Annual Payment”), which are subject to adjustment under Paragraph 2 for changes in such capacity. Each Annual Payment will be paid on a fiscal year basis in four (4) equal (or, in the Town’s reasonable discretion in order to conform payments to the Board of Assessor’s valuation of the Project, slightly unequal) quarterly installments, each of which shall be due on or before August 1, November 1, February 1, and May 1 (each a “Quarterly Payment Date”) of each fiscal year. Each quarterly payment amount and due date will be noted on a tax ▇▇▇▇ to be issued by the Town to the Developer, provided that any failure of the Town to issue such a ▇▇▇▇ shall not relieve Developer of its obligation to make timely payments hereunder, and provided further that if no ▇▇▇▇ is issued, Developer shall be in compliance with its payment obligations if it makes all quarterly installments (for which no ▇▇▇▇ has been issued by the Town) in equal installments by the dates aforesaid. Annual Payments shall commence with the first quarterly installment due on the first Quarterly Payment Date on or following the Commercial Operations Date (as defined below) (the “Commencement Date”); and shall end with the last quarterly installment due on the Quarterly Payment Date that occurs in the fiscal tax quarter of the day before the twentieth (20th) anniversary of the Commencement Date. If the Commencement Date occurs on a date other than July 1 and/or the Agreement expires or is earlier terminated on a date other than June 30, Annual Payments shall be prorated for such year(s). Other than as provided in Paragraph 2, Developer agrees that the Annual Payments will not be reduced for any reason (including without limitation on account of a depreciation factor, revaluation or reduction in the Town’s tax rate, or legislative action fixing or otherwise setting taxes or payments in lieu thereof for photovoltaic solar facilities), and the Town agrees that the Annual Payments will not be increased (including on account of an inflation factor, revaluation or incr...
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Payment in Lieu of Personal Property Taxes. Lessee agrees to make payments to the Town in lieu of personal property taxes on and after the Commercial Operation Date, as defined in the PPA between the Parties, in an annual fixed amount as shown in Exhibit B until the expiration or early termination of the PPA, as it may be extended in accordance therewith. This Agreement shall expire upon the date that is last quarterly payment due on the twentieth (20th) anniversary of the Commercial Operation Date as set forth in Exhibit B. Within thirty (30) days following the Commercial Operation Date, a ▇▇▇▇ will be issued by the Town to the Lessee, with the amount due and the payment due date noted on the ▇▇▇▇ (the due date of the payment shall be at least thirty (30) days after the date of the ▇▇▇▇). Lessee agrees that the payments in lieu of taxes under this Agreement will not be reduced on account of a depreciation factor, revaluation or reduction in the Town’s tax rate or assessment percentage and the Town agrees that the payments in lieu of taxes will not be increased on account of an inflation factor, revaluation or increase in the Town’s tax rate or assessment percentage. The Parties further agree that the annual PILOT Payment shall not be changed on account of legislative action fixing, exempting or otherwise setting taxes or payments in lieu thereof for photovoltaic solar facilities. To the extent that the as-built capacity of the Project varies from the proposed capacity herein, as demonstrated by as-built drawings and equipment specifications the annual payment amount owed and due the Town shall be adjusted by the percentage of increase or decrease of the capacity of the Project from the capacity proposed herein.
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Payment in Lieu of Personal Property Taxes. ▇▇▇▇▇▇▇▇▇ agrees to make payments to the Town in lieu of personal property taxes beginning July 1, 2023 for a period of twenty (20) consecutive years (hereinafter the “Term”), commencing with Fiscal Year 2024 (the first semi-annual payment date being November 1, 2023), and ending with Fiscal Year 2043 (the last semi-annual payment date being May 1, 2043), in the amounts per year in Exhibit B. Each annual payment will be paid to the Town in two (2) equal semi-annual installments on or before November 1 and May 1 of each fiscal tax year during the term of this Agreement and the annual payment amount and payment date will be noted on a semi-annual bill issued by the Town to the Developer. Except to the extent that Paragraphs 2, 3 and 4 of the Agreement provide otherwise, Developer agrees that the payments in lieu of taxes under this Agreement will not be reduced on account of a depreciation factor, revaluation or reduction in the Town's tax rate or assessment percentage beyond that anticipated by the Parties and already reflected in Exhibit B, and the Town agrees that the payments in lieu of taxes will not be increased on account of an inflation factor, revaluation or increase in the Town's tax rate or assessment percentage beyond that anticipated by the Parties and already reflected in Exhibit B. Pursuant to Chapter 59, Section 5, Clause 45th, as amended by Chapter 8 of the Acts of 2021, the term of this Agreement may be extended beyond twenty (20) years if the reason for said extension is clearly set forth herein. No such reason has been set forth herein and so the term has not been extended beyond twenty (20) years.
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Payment in Lieu of Personal Property Taxes. This Agreement for Payment in Lieu of Taxes for Personal Property pursuant to
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Payment in Lieu of Personal Property Taxes 
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Related to Payment in Lieu of Personal Property Taxes

  • Personal Property Taxes Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause such property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said personal property shall be assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within ten (10) days after receipt of a written statement.

  • PERSONAL PROPERTY TAX All personal property taxes will be paid by Contractor.

  • Real Property Taxes Taxes, assessments and charges now or hereafter levied or assessed upon, or with respect to, the Project, or any personal property of Landlord used in the operation thereof or located therein, or Landlord's interest in the Project or such personal property, by any federal, state or local entity, including: (i) all real property taxes and general and special assessments; (ii) charges, fees or assessments for transit, housing, day care, open space, art, police, fire or other governmental services or benefits to the Project, including assessments, taxes, fees, levies and charges imposed by governmental agencies for such purposes as street, sidewalk, road, utility construction and maintenance, refuse removal and for other governmental services; (iii) service payments in lieu of taxes; (iv) any tax, fee or excise on the use or occupancy of any part of the Project, or on rent for space in the Project; (v) any other tax, fee or excise, however described, that may be levied or assessed as a substitute for, or as an addition to, in whole or in part, any other Real Property Taxes; and (vi) reasonable consultants' and attorneys' fees and expenses incurred in connection with proceedings to contest, determine or reduce Real Property Taxes. Real Property Taxes do not include: (A) franchise, transfer, inheritance or capital stock taxes, or income taxes measured by the net income of Landlord from all sources, unless any such taxes are levied or assessed against Landlord as a substitute for, in whole or in part, any Real Property Tax; (B) Impositions and all similar amounts payable by tenants of the Project under their leases; and (C) penalties, fines, interest or charges due for late payment of Real Property Taxes by Landlord. If any Real Property Taxes are payable, or may at the option of the taxpayer be paid, in installments, such Real Property Taxes shall, together with any interest that would otherwise be payable with such installment, be deemed to have been paid in installments, amortized over the maximum time period allowed by applicable law. If the tax statement from a taxing authority does not allocate Real Property Taxes to the Building, Landlord shall make the determination of the proper allocation of such Real Property Taxes based, to the extent possible, upon records of the taxing authority and, if not so available, then on an equitable basis. Real Property Taxes also do not include any increases in the taxes, assessments, charges, excises and levies assessed against the Project due solely to the construction or installation of tenant improvements or other alterations by tenants of the Project other than Tenant and any other tenants or occupants of the Building; provided, however, that if any Real Property Taxes are imposed or increased due to the construction or installation of tenant improvements or other alterations in the Building, such Real Property Taxes shall be equitably prorated in Landlord's reasonable judgment between Tenant and any other tenants of the Building.

  • Property Taxes Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the Lease term on the Leased Premises, and all personal property taxes with respect to Landlord's personal property, if any, on the Leased Premises. Tenant shall be responsible for paying all personal property taxes with respect to Tenant's personal property at the Leased Premises.

  • Property Tax The Lessor shall be responsible for payment of present and future Property Tax imposed by the municipal authorities in respect of the Demised Premises.