Payments in Lieu of Taxes Clause Samples
The Payments in Lieu of Taxes clause establishes an obligation for a party, typically a lessee or operator, to make payments to a governmental authority that are equivalent to the amount of property taxes that would otherwise be due if the property were not exempt. In practice, this clause applies when a property is owned by a tax-exempt entity, such as a government or nonprofit, but is used by a private party who benefits from public services funded by taxes. By requiring these payments, the clause ensures that the private user contributes a fair share toward local government revenues, thereby addressing the issue of lost tax income due to tax-exempt ownership.
Payments in Lieu of Taxes. (a) In accordance with the provisions of Section 12-44-50 of the Act, during the Term of this Agreement the Company shall make with respect to the applicable portions of the Project annual FILOT Payments in the amounts set forth in this Section at the times and places, and in the same manner and subject to the same penalty assessments as prescribed by the County or the Department for ad valorem taxes. Such annual payments shall be made on or before each January 15 of each year during the term of this Agreement, commencing January 15 of the year following the year immediately after the year in which any Project Increment is first placed in service. Subject to the provisions of the Act, each annual FILOT Payment shall be equal to the Project Increment Payment with respect to each Project Increment, including, subject to the provisions of the Act, Replacement Property for the Project originally included in such Project Increment, calculated as set forth in Section 5.02(b) hereof, for each of twenty (20) consecutive years (except to the extent that any portion of such Project Increment ceases to qualify for a negotiated fee in lieu of taxes under the Act) commencing with the year following the year in which the respective Project Increments are placed in service.
(b) Each Project Increment Payment shall be in an amount not less than the ad valorem taxes that would be due with respect to the applicable Project Increment if the same were taxable, but, to the extent such Project Increment constitutes Economic Development Property, using the following formula: each such Project Increment Payment shall be in an amount equal to the product which would result from multiplying the Project Millage Rate by an assessment ratio of six and one-half percent (6.5%) of the fair market value of the portion of the Project included within such Project Increment. Such fair market value shall be that determined by the Department on the basis provided in Section 12-44-50(A) of the Act, and shall, subject to the provisions of the Act, include all Replacement Property and deductions for depreciation or diminution in value allowed by the Act or by the tax laws generally, and shall be subject to any reductions provided herein under Sections 5.01 and 6.01 hereof, and includes all applicable ad valorem tax exemptions except the exemption allowed pursuant to Section 3(g) of Article X of the South Carolina Constitution and the exemptions allowed pursuant to Section 12-37-220(B) (32) and (3...
Payments in Lieu of Taxes. A. Pursuant to the provisions of the Redevelopment Plan and the Act, including, but not limited to, Section 99.845 thereof, when Tax Increment Financing is established by Ordinance for a Redevelopment Project Area, the real property located therein is subject to assessment for annual Payments in Lieu of Taxes. Payments in Lieu of Taxes shall be due November 30 of each year in which said amount is required to be paid and will be considered delinquent if not paid by December 31 of each such year or as otherwise determined by applicable law. The obligation to make said Payments in Lieu of Taxes shall be a covenant running with the land for the duration of the Redevelopment Plan (and any renewal periods thereof) and shall create a lien in favor of City on each such tax parcel as constituted from time to time and shall be enforceable against Developer and its successors and assigns in ownership of property in the Redevelopment Project Areas.
B. Failure to pay Payments in Lieu of Taxes as to any property in the Redevelopment Project Areas shall constitute a default by the owner, assignee, and/or tenant of such property (but not the Developer in the event Developer is not the owner of such property) of the provisions of Section 34 hereof, and shall entitle City, the County Collector or any other government official or body charged with the collection of any such sums (any one or more of such persons hereinafter individually or collectively referred to as the “Collection Authority”) to proceed against such property and/or the tenant or the owner thereof (but not Developer in the event Developer is not the owner of such property) as in other delinquent property tax cases or otherwise as permitted at law or in equity, and, if applicable, such failure shall entitle the Collection Authority to seek all other legal and equitable remedies it may have to ensure the timely payment of all such sums; provided, however, that the failure of any property in the Redevelopment Project Areas to yield sufficient payments in lieu of taxes because the increase in the current equalized assessed value of such property is or was not as great as expected, shall not by itself constitute a breach or default. Promptly upon the designation and approval of the Redevelopment Project Ordinance, City shall use all reasonable and diligent efforts to promptly notify the County Assessor, County Collector, the City Treasurer and all other appropriate officials and persons and seek to assess the pro...
Payments in Lieu of Taxes. Mobile Home Privilege Tax Payments from Local Housing Authority Corporate Personal Property Replacement Taxes13 Other Payments in Lieu of Taxes (▇▇▇▇▇▇▇▇ & Itemize) Regular Tuition from Pupils or Parents (In State) Regular Tuition from Other Districts (In State) Regular Tuition from Other Sources (In State) Regular Tuition from Other Sources (Out of State) Summer School Tuition from Pupils or Parents (In State) Summer School Tuition from Other Districts (In State) Summer School Tuition from Other Sources (In State) Summer School Tuition from Other Sources (Out of State) CTE Tuition from Pupils or Parents (In State) CTE Tuition from Other Districts (In State) CTE Tuition from Other Sources (In State) CTE Tuition from Other Sources (Out of State) Special Education Tuition from Pupils or Parents (In State) Special Education Tuition from Other Districts (In State) Special Education Tuition from Other Sources (In State) Special Education Tuition from Other Sources (Out of State) Adult Tuition from Pupils or Parents (In State) Adult Tuition from Other Districts (In State) Adult Tuition from Other Sources (In State) Adult Tuition from Other Sources (Out of State) Regular Transportation Fees from Pupils or Parents (In State) Regular Transportation Fees from Other Districts (In State) Regular Transportation Fees from Other Sources (In State) Regular Transportation Fees from Co-curricular Activities (In State) Regular Transportation Fees from Other Sources (Out of State) Summer School Transportation Fees from Pupils or Parents (In State) Summer School Transportation Fees from Other Districts (In State) Summer School Transportation Fees from Other Sources (In State) Summer School Transportation Fees from Other Sources (Out of State) CTE Transportation Fees from Pupils or Parents (In State) CTE Transportation Fees from Other Districts (In State) CTE Transportation Fees from Other Sources (In State) CTE Transportation Fees from Other Sources (Out of State) Special Education Transportation Fees from Pupils or Parents (In State) Special Education Transportation Fees from Other Districts (In State) Special Education Transportation Fees from Other Sources (In State) Special Education Transportation Fees from Other Sources (Out of State) Adult Transportation Fees from Pupils or Parents (In State) Adult Transportation Fees from Other Districts (In State) Adult Transportation Fees from Other Sources (In State) 1150 1160 1170 1190 1210 1220 1230 1290 1311 1312 1313 1314 1321 1...
Payments in Lieu of Taxes. The parties acknowledge that under Article I, Section 3 of the South Carolina Constitution, the Project is exempt from ad valorem property taxes assuming a Fee Agreement is signed. However, the Company shall be required to make the Payments-in-Lieu-of-Taxes with respect to the Project as provided in this Section 5.1. In accordance with the Act, and unless this Fee Agreement is sooner terminated, the Company shall make annual Payments-in-Lieu-of-Taxes with respect to the Project, said payments being due and payable and subject to penalty assessments in the manner prescribed by the Act. Such amounts shall be calculated and payable as follows:
(a) The Company has agreed to make annual Payments-in-Lieu-of-Taxes with respect to the Project in an amount equal to the property taxes that would be due with respect to such property, if it were taxable, but using an assessment ratio of 6 % and a millage rate of 350.647. Subject in all events to the provisions of the Act, the fair market value estimate determined by the DOR will be as follows:
(i) for real property (although no real property investment is anticipated at the Project), using the original income tax basis for South Carolina income tax purposes without regard to depreciation; provided, however, if real property is constructed for the fee or is purchased in an arm’s length transaction, fair market value equals the original income tax basis; otherwise, the DOR will determine fair market value by appraisal; and
(ii) for personal property, using the original income tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the Company is not entitled to extraordinary obsolescence.
(b) The Payments-in-Lieu-of-Taxes must be made on the basis that the Project property, if it were otherwise subject to ad valorem property taxes, would be subject to no other tax exemptions, including, but not limited to the exemptions allowed under Section 3(g) of Article X of the South Carolina Constitution and Section 12-37-220(B)(32) and (34) of the Code of Laws of South Carolina, as amended.
(c) The Company shall make Payments-in-Lieu-of-Taxes for each year during the term hereof beginning with the tax year following the year property is first placed in service. The Payments-in-Lieu-of-Taxes shall be made to the County Treasurer on the due dates which would otherwise be applicable for ad valorem property taxes for the Project, with the first payment being due on the first...
Payments in Lieu of Taxes. Special Source Revenue Credit. 7
Payments in Lieu of Taxes. (a) In accordance with the Act, the parties hereby agree that, during the Term of the Agreement, the Company shall pay with respect to the Project annually a fee in lieu of taxes (a “FILOT”) in the amount calculated as set forth in paragraph (b) below, on or before January 15 of each year commencing on January 15, 2013, 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 with respect to each property tax year shall equal the sum of
(i) with respect to any portion of the Project consisting of undeveloped land or Non-Economic Development Property for which the Company is obligated, by law or agreement, to pay taxes, a payment equal to the taxes that would otherwise be due on such undeveloped land or Non-Economic Development Property were it taxable; (ii) with respect to those portions of the Project (other than undeveloped land and Non-Economic Development Property) placed in service during the Extended Investment Period, for each of the thirty (30) 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) through (e) below (a “Negotiated FILOT”); and (iii) with respect to increments of the Project constituting Economic Development Property after such 30-year period, a payment equal to the ad valorem taxes that would otherwise be due on such property were it taxable, with appropriate reductions with respect to the property described in clauses (i) and (ii) above, similar to the tax exemption, if any, which would be afforded to the Company if ad valorem taxes were paid, only to the extent permitted by the Act for Economic Development Property. For the purposes of clause (ii) above, there shall be excluded any Released Property and any other portion of the Project which ceases to qualify for a FILOT hereunder or under the Act. The Company and the County intend that, for each phase of the Project, the annual Negotiated FILOT payments hereunder shall be payable for a consecutive period of up to thirty (30) years.
(i) The Negotiated FILOT Payment with respect to any property tax year shall be calculated in accordance with subparagraph (c)(ii) or (c)(iii) below.
(ii) The Negotiated FILOT Payments shall be calculated with respect to each property tax year based on (1) the fair market value of the improvements to real property and Equipment includ...
Payments in Lieu of Taxes. Negotiated Payments 11 Section 4.2 Certain Payment Adjustments 15 Section 4.3 Payments in Lieu of Taxes on Replacement Property 16
Payments in Lieu of Taxes. PILOT revenues pledged by the CAB Districts to the CAB pursuant to a pledge agreement or pledge agreements shall be collected by the CAB and applied as set forth under such pledge agreements to the repayment of the obligations secured under the pledge agreements.
Payments in Lieu of Taxes. (a) Because ownership of the Project Site will be transferred to the County in 2017, the real property would not be subject to ad valorem taxation for 2017 and 2018, and, therefore, the Company is required to make a PILOT payment equal to 100% of the taxes that would otherwise be due for years 2017 and 2018. The County acknowledges that the Project Improvements will be made by the Company in calendar years 2017 and 2018 and agrees that the Company shall receive 10 years of 50% ad valorem real property tax abatement beginning in 2019. In addition to the 100% PILOT payment for years 2017 and 2018, the Company covenants and agrees to make PILOT Payments to the County on or before each December 31, commencing December 31, 2019, in an amount equal to the applicable percentage shown below times the amount of ad valorem real property taxes which would otherwise be due with respect to the Project Improvements: Warehouse, Distribution, and Office Building Real Property 2019 – 2028 2018 and 2029 and thereafter
(b) The Developer shall exercise its option pursuant to Section 11.4 of the Lease to purchase the Project no later than December 31, 2028. If title to the Project or the applicable portion thereof as described in the preceding sentence has not been transferred by the County to the Developer before December 31, 2028, then on December 31, 2029, and each year thereafter until title to the Project or the applicable portion thereof as described in the preceding sentence is transferred to the Developer, the Company shall pay to the County a PILOT Payment equal to 100% of the amount that would otherwise be payable to each taxing jurisdiction but for the County’s ownership thereof.
(c) The County Assessor will, until this Agreement is terminated, determine an assessed valuation with respect to the Project in accordance with Article X, Section 4(b) of the Missouri Constitution and Section 137.115 of the Revised Statutes of Missouri, as amended, as if title to the Project were in the name of the Company or an Affiliate and not the County. Such assessment shall be performed as of January 1 of each year. To facilitate the assessment, the Company agrees to provide to the County Assessor each year, by the same date on which property declarations are required by law to be made, a report that includes the following information:
(1) a list of the Project Improvements completed during the calendar year; and
(2) such other information as the County Assessor may reasonably requir...
Payments in Lieu of Taxes. The Board and the Company acknowledge that, under present law, the Project, as long as at is owned by the Board, is exempt from ad valorem taxation by the State of Alabama or any political or taxing subdivision thereof, including ▇▇▇▇▇▇▇ County. The Company agrees that it will make payments in lieu of taxes ("PILOT Payments"), consisting of payments in fixed, specified amounts ("Fixed Payments") and payments in amounts determined by formula as set forth below ("Variable Payments"), so long as the Bonds and any Additional Bonds are outstanding and subject to the provisions of the last paragraph of this Section 5.7, in the amounts and at the times and in the manner set forth below. The PILOT Payments shall be payable on July 1 and August 15, 1993 and on August 15 of each subsequent year, commencing August 15, 1994. The Fixed Payments shall be payable to ▇▇▇▇▇▇▇ County and shall be in the following amounts: $55,000 on July 1, 1993; $145,000 on August 15, 1993; $200,000 on August 15, 1994; $50,000 on each of August 15, 1995, August 15, 1996, August 15, 1997 and August 15, 1998; and $100,000 on August 15 of each subsequent year, commencing August 15, 1999. The aggregate Variable Payments for each year shall be in an amount equal to 60% of the "education taxes" (as defined below) that would be payable with respect to the Project leased under the Lease, calculated as of the December 31 of the second preceding calendar year (each December 31, an "Assessment Date") with respect to those portions of the Project capitalized for financial accounting purposes and leased under this Agreement on such Assessment Date. For purposes of this Section 5.7, "education taxes" means the ad valorem taxes then currently levied on property situated in ▇▇▇▇▇▇▇ County to support public schools in ▇▇▇▇▇▇▇ County (i.e., the levy for the ▇▇▇▇▇▇▇ County Board of Education and the ▇▇▇▇▇▇▇ County countywide schools levy levied as of the applicable Assessment Date), which taxes would be assessed against the Project if the Project was not exempt from ad valorem taxes. The Variable Payment due on August 15, 1994 (with respect to the December 31, 1992 Assessment Date) and August 15, 1995 shall be distributed as follows: 60% to the Phenix City Board of Education and 40% to the ▇▇▇▇▇▇▇ County Board of Education. The Variable Payments due on December 15, 1996 and thereafter shall be distributed as follows: 55% to the Phenix City Board of Education, 35% to the ▇▇▇▇▇▇▇ County Board of Education, 5% ...