How does the BOAT impact a landlord who pays municipal taxes associated with the BOAT on behalf of a tenant as part of an overall lease?
Bill 191 contains a provision that allows a landlord to re-open a leasing agreement for the purpose of recovering increased taxes associated with the phase-out of the Business Occupancy Assessment Tax (BOAT). This applies only in circumstances where a landlord directly pays municipal taxes on behalf of a tenant and has calculated this cost into an existing lease. Bill 191 also allows for a one-time request by a tenant information on their individual BOAT assessment in order to determine if a landlord is making a fair and adjustment in rent and the landlord can obtain information on the full BOAT for the whole building so that they can calculate the adjustments. Clients should contact their Regional Assessment Office for this information.