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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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By leasing commercial space do I have to be responsible tax

Customer Question

Hi,by leasing commercial space do I have to be responsible for property tax payment?
Submitted: 10 months ago.
Category: Tax
Expert:  Tax.appeal.168 replied 10 months ago.

In some cases yes, in other cases, no. It all depends on the terms of your lease. SEE BELOW:

Critical Lease Terms

The following list includes many items that are often addressed in commercial leases. Pay attention to terms regarding:

  • the length of lease (also called the lease term), when it begins and whether there are renewal options
  • rent, including allowable increases (also called escalations) and how they will be computed
  • whether the rent you pay includes insurance, property taxes, and maintenance costs (called a gross lease); or whether you will be charged for these items separately (called a net lease)
  • the security deposit and conditions for its return
  • exactly what space you are renting (including common areas such as hallways, rest rooms, and elevators) and how the landlord measures the space (some measurement practices include the thickness of the walls)
  • whether there will be improvements, modifications (called build outs when new space is being finished to your specifications), or fixtures added to the space; who will pay for them, and who will own them after the lease ends (generally, the landlord does)
  • specifications for signs, including where you may put them
  • who will maintain and repair the premises, including the heating and air conditioning systems
  • whether the lease may be assigned or subleased to another tenant
  • whether there's an option to renew the lease or expand the space you are renting
  • if and how the lease may be terminated, including notice requirements, and whether there are penalties for early termination, and
  • whether disputes must be mediated or arbitrated as an alternative to court.

REFERENCE SOURCE:

http://www.nolo.com/legal-encyclopedia/commercial-lease-basics-29934.html

Let me know if I can be of further assistance to you regarding this matter.

If in the terms, it states that the tenant is responsible for property taxes and you signed the lease, then yes, you are responsible for paying property taxes. On the other hand, if it is not specified in the terms that you are responsible for paying the property taxes, then you are not responsible for paying those taxes.

Expert:  Tax.appeal.168 replied 10 months ago.

Hello again,

Checking in to see if the information that I provided was useful to you. If so, please be so kind as to leave a positive rating so that I may receive credit for assisting you. Thank you in advance.