tax stop
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.