tax stop

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Tax Stop

A clause in a lease stating that the lessee is responsible for payment of property taxes should they rise above a certain level. The tax stop limits the lessor's liability for property taxes.

tax stop

A clause in a lease that stops the escalation of tax expenses for either the landlord or the tenant.(1) A tenant tax stop would put an upper limit on the taxes a tenant must reimburse to a landlord under a net lease or triple-net lease. (2) A landlord tax stop would require the tenant to reimburse the landlord if property taxes in any year exceed a certain amount.

References in periodicals archive ?
This tax stops the slide of our schools, and that is good for business.
3% SE tax stops when your net income drops below zero.
The income tax gets bigger as your income rises, but the payroll tax stops at $62,000.