Quote:
Originally Posted by topfiverecords
If the restaurant owns the property won’t the property tax still exist whether they’re open or closed?
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Many/most small businesses rent their premises, but typically pay rent on a "net lease" basis. So they pay the operating costs and taxes of the building, plus rent.
I believe the reason for that (which is different than residential rentals) is that lease terms are much longer. It would be hard for a property owner to sign a 20 year lease where they were responsible for taxes, because they could end up losing money.
If the restaurant is leased, the corporation that owns it could declare bankruptcy, which would get them out of paying the taxes going forward. The city will still get paid by the building owner, who will have to find a new tenant...