Payments in Lieu of Ad Valorem Taxes Sample Clauses
The "Payments in Lieu of Ad Valorem Taxes" clause requires a party, typically a lessee or operator, to make payments to a governmental entity that are equivalent to what would have been owed in property taxes, even if the property is exempt from such taxes. In practice, this means that instead of paying standard ad valorem (property) taxes, the party makes substitute payments calculated in a similar manner, often based on the assessed value of the property or assets involved. This clause ensures that local governments receive revenue comparable to property taxes, even when the property is tax-exempt, thereby compensating for lost tax income and maintaining public funding.
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Payments in Lieu of Ad Valorem Taxes. (a) In accordance with the Act, the parties hereby agree that, during the Term of the Agreement, the Company shall pay annually, with respect to the Project, a FILOT in the amount calculated as set forth in this Section, on or before the date, and at the places, in the manner, and subject to the penalty assessments prescribed by the County or the Department of Revenue for ad valorem taxes.
(b) The FILOT Payment due for the Project with respect to each property tax year shall equal:
(i) With respect to any portion of the Project consisting of Non- Qualifying Property, as long as such property is located in the Multi-County Park, a payment equal to the ad valorem taxes that would otherwise be due on such Non-Qualifying Property were it taxable giving effect to all credits, exemptions, rebates and abatement that would be available if such undeveloped land or Non-Qualifying Property were taxable; and
(ii) With respect to those portions of the Project consisting of Economic Development Property, for each of the thirty consecutive years following the year in which such portion of the Project is placed in service, a payment calculated each year as set forth in paragraphs (c) and (d) below (a “Negotiated FILOT”).
(c) The Negotiated FILOT Payments shall be calculated with respect to each property tax year based on: (1) the fair market value (determined in accordance with Section 12-44-50(A)(1)(c) of the Code) of the improvements to real property and Equipment included within the Project theretofore placed in service (less, for Equipment, depreciation allowable for property tax purposes as provided in Section 12-44- 50(A)(1)(c) of the Code), (2) a fixed millage rate equal to the millage rate as of 279.1 ▇▇▇▇▇ for the entire term of this Agreement, and (3) an assessment ratio of six percent (6%). All such calculations shall take into account all deductions for depreciation or diminution in value allowed by the Code or by the tax laws generally, as well as tax exemptions which would have been applicable if such property were subject to ad valorem taxes, except the exemption allowed pursuant to Section 3(g) of Article X of the Constitution of the State of South Carolina and the exemptions allowed pursuant to Sections 12-37-220(B)(32) and (34) of the Code.
(d) The FILOT payments are to be recalculated:
(i) to reduce such payments in the event the Company disposes of any part of the Project within the meaning of Section 12-44-50(B) of the Code and as provided in Section ...
Payments in Lieu of Ad Valorem Taxes. (a) In accordance with the Act, the parties hereby agree that, during the Term of the Agreement, the Company shall pay annually, with respect to the Project, a FILOT in the amount calculated as set forth in this Section, on or before the date, and at the places, in the manner, and subject to the penalty assessments prescribed by the County or the Department of Revenue for ad valorem taxes.
(b) The FILOT Payment due for the Project with respect to each property tax year shall equal:
(i) With respect to any portion of the Project consisting of Non- Qualifying Property, as long as such property is located in the Multi-County Park, a payment equal to the ad valorem taxes that would otherwise be due on such Non- Qualifying Property were it taxable giving effect to all credits, exemptions, rebates and abatement that would be available if such undeveloped land or Non-Qualifying Property were taxable; plus
(ii) With respect to those portions of the Project consisting of Economic Development Property, for each of the twenty-five (25) consecutive years following the year in which such portion of the Project is placed in service, a payment calculated each year as set forth in paragraphs (c) below (a “Negotiated FILOT”); less Special Source Revenue Credits given to the Economic Development Property in amounts equal to twenty-five percent (25%) for years 1 – 10 and fifteen percent (15%) for years 11 – 20, and ten percent (10%) for years 21 – 25.
(iii) The Company agrees to forego the Special Source Revenue Credits commencing with the first Negotiated FILOT Payment until a total of $2,000,000 of Special Source Credits has been waived. Upon reaching this amount, the County will make certain improvements to Bushy Park Road as further described on Exhibit B attached hereto, provided, however, that if the County is able to obtain funding for all or a portion of such improvements from a source other than County ad valorem tax revenues, the Special Source Credits foregone by the Company will be restored by the County increasing the Special Source Credits to fifty percent (50%) for the years following the year in which such funding becomes available until the amount of waived Special Source Credits is restored in an amount equal to the amount of the non-county ad valorem tax road funding received by the County (such percentage to be adjusted as necessary for reimbursement of the last annual installment of the restoration amount).
(c) The Negotiated FILOT Payments shall be calc...
Payments in Lieu of Ad Valorem Taxes. During the Minimum Annual Payment Period, if all or a portion of the Anchor Property is exempt from ad valorem taxes (whether resulting from ownership of such real or personal property by a public or private tax-exempt entity or a lease or sublease of such property to a public or private tax-exempt entity), the owner(s) of the Anchor Property shall make (or cause to be made) payments in lieu of ad valorem taxes with respect to the real property and/or personal property to which such exemption applies, commencing in any year in which such ad valorem tax exemption is in effect and terminating upon the first to occur of termination of such ad valorem tax exemption or termination of Increment District No. 5.
Payments in Lieu of Ad Valorem Taxes. (a) In accordance with the Act, the parties hereby agree that, during the Term of the Agreement, the Company shall pay annually, with respect to the Project, a FILOT in the amount calculated as set forth in this Section, on or before the date, and at the places, in the manner, and subject to the penalty assessments prescribed by the County or the Department of Revenue for ad valorem taxes.
(b) The FILOT Payment due for the Project with respect to each property tax year shall equal:
(i) With respect to any portion of the Project consisting of Non- Qualifying Property, as long as such property is located in the Multi-County Park, a payment equal to the ad valorem taxes that would otherwise be due on such Non- Qualifying Property were it taxable giving effect to all credits, exemptions, rebates and abatement that would be available if such undeveloped land or Non-Qualifying Property were taxable; plus
(ii) With respect to those portions of the Project consisting of Economic Development Property, for each of the twenty-nine (29) consecutive years following the year in which such portion of the Project is placed in service, a payment calculated each year as set forth in paragraphs (c) below (a “Negotiated FILOT”); less Special Source Revenue Credits, if any, given to the Economic Development Property in the corresponding percentage of the otherwise due FILOT Payments for the corresponding term of years listed below:
Payments in Lieu of Ad Valorem Taxes. (a) In accordance with the Act, the parties hereby agree that, during the Term of the Agreement, the Company and any Co-Investors shall pay annually with respect to each portion of the Project, a FILOT in the amount calculated as set forth in this Section, to be collected and enforced in accordance with Section 12-44-90 of the Act by the County upon which the applicable portions of the Project are located.