In a commercial lease, the tenant may be required to assume or reimburse certain taxes relating to the building or leased premises when the lease provides for it.
Depending on the type of lease and the terms agreed between the parties, the tenant may be required to assume their share of certain property taxes, municipal taxes or other tax charges related to the building.
When a building has multiple tenants, the lease should specify the method used to determine each tenant's share of the taxes. This allocation may be based on the square footage of the rented premises or according to another method stipulated in the lease.
The lease should also specify which taxes are included in the rent or additional charges, how they are calculated, and the terms applicable when they increase or decrease during the term of the lease.
It is important to distinguish between taxes relating to the building and taxes, duties or other charges which may be directly related to the tenant's property, activities or business.
The tenant should therefore carefully check the lease provisions regarding taxes and additional charges in order to know the real cost of their occupancy of the premises beyond just the basic rent.