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F.A.Qs
Below is a collection of Frequently Asked Questions for buying, leasing, or selling commercial property. Note that "Questions from Buyers" includes Tenant questions and "Questions from Sellers" includes Landlord questions. If you have any other questions, not listed here, feel free to call or send an e-mail.
Buyers
What is a Triple Net (NNN) lease?
A lease requiring the tenant to pay in addition to a fixed rental, the expenses of the property leases, such as taxes, insurance, maintenance, utilities, cleaning etc. The terms "net net", "net net net", "triple net", and other such repetitions are used.
What is the "TPT tax"?
Transaction privilege tax (TPT) refers to a tax levied by the State of Arizona on certain persons for the privilege of conducting business in the state. TPT differs from the “true” sales tax imposed by many other U.S. states as it is imposed upon the seller or lessor rather than the purchaser or lessee. The seller/lessor may pass the burden of the tax on to the purchaser/lessee, but the seller or lessor is the party that remains ultimately liable to Arizona for the tax. TPT is imposed under 17 separate business classifications of which Commercial Lease is one, meaning that, at a minimum, the monthly base rent for a commercial lease is subject to this taxation.
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