Get Right to Use Base Year Tax Reductions to Calculate Tenants’ Tax Increase Payments

Like many landlords, your lease may contain a tax escalation clause requiring the tenant to pay its share of any real estate tax increases that occur during the lease term. These increases are often measured off a base year, typically the first year of the lease. However, pegging future tax increase payments to the original base year tax could end up costing you a fortune if you later manage to get that tax assessment reduced.