Opinion ID: 186311
Heading Depth: 2
Heading Rank: 1

Heading: Sales Taxes

Text: 7 First, O'Donnell disputes the award of $10,787.67 reflecting sales taxes which Mick's paid subject to reimbursement by BOD for the months of February and March 1999. O'Donnell asserts that, because BOD's obligation to repay the funds arose under a side oral agreement separate from the sublease, he is not required to cover the tax advances under the guaranty. We disagree. 8 The sublease expressly requires that BOD pay as part of its additional rent under the sublease one hundred (100%) percent [sic] of all items of `Additional Rent', as defined under Lease, which are payable by Sublessor under the Lease, including without limitation, `Operating Costs', `Taxes', as defined in the Lease, utility charges, insurance and all other items of Additional Rent payable by Sublessor under the Lease. Sublease at 2, § 3B. The lease, in turn, requires that the tenant 9 as Additional Rent, pay all business taxes, rates, duties, levies, assessments and/or license fees imposed in respect of any and every business conducted in, on or from the Leased Premises or in respect of the use or occupancy thereof, to the authorities having jurisdiction thereof promptly when the same shall become due and payable, and before the imposition of any fine or penalties. 10 Lease at 25-26, § 11.02. We agree with the district court and the appellees that sales taxes plainly come within the broad category of all business taxes, rates, duties, levies, assessments and/or license fees imposed in respect of every business conducted by BOD at the leased premises. 4 BOD was therefore required to pay them as additional rent under the sublease. We further agree that the broad language of the guaranty obliged O'Donnell to reimburse the sales taxes Mick's paid on BOD's behalf. In the guaranty the O'Donnells undertook both generally to promptly cure any default in any term covenant, or condition of the Sublease (including default of BOD's obligation to pay sales taxes) and, specifically, to indemnify and hold harmless Mick's ... from and against any and all claims and liabilities, causes of action, and damages, including but not limited to, tax liabilities.  Guaranty at 2, §§ 2, 3 (emphasis added).