QUESTION
Hi I would like to know what they mean in this paragraph
Asked on Dec 31st, 2020 on Business Law - New York
More details to this question:
Hi can anyone explain me what this means? It’s for a commercial space. “Tenant will pay its pro-rata share of property tax increases over the Tenant's 2021/22 base year 20% of tax increase from base year“
1 ANSWER
It is a little confusing, and not well- drafted, but I think it means that the tenant is agreeing to pay 20% of any increase in property tax above the amount charged in the 2021/2022 tax year. In other words, if property tax in 2021-2022 is $10,000 and increases to $15,000 in 2022-2023, the tenant will pay 20% of the $5,000 increase, i.e. $1,000.
Answered on Jan 01st, 2021 at 6:07 PM