Legal Question in Landlord & Tenant Law in Pennsylvania

Or company recently moved our facility in January 2014. We do have a rental agreement that expires April 2015 which we do make timely rental payments as per our agreement. We do local Use & Occupancy Tax each month as per a letter received 09/25/13 and have never received a payment book or invoice from the landlord. Our company makes U&O check payable to the local municipal office responsible for collecting U&O tax and sends the check directly to the landlord's home address where the landlord submits payment.

The landlord has full knowledge of our vacating the premises and has been in the vacant building numerous times to meet with real estate agents to assess the building and also show the building to potential buyers.

My concern is that according the guidelines published by the local municipal branch responsible for collecting U&O Tax, Vacant Commercial Properties are excluded from U&O tax.

Published Statement: Commercial properties that are vacant are not taxed, but a landlord must still file a Form UO1 to indicate the vacancy. Similarly, the portion of a commercial property not in current business use is not taxed but must be reported. Use Line 2 of the Form UO1 for this purpose.

With knowledge of the vacant building, acceptance of check from our company to the landlord's personal address (as requested) and the forwarding of the payment directly to City tax office has the landlord acted in Bad Faith ?

Since the landlord has never furnished a payment book or invoice and continued to accept and forward our payments for U&O Tax, does this constitute a Breach of Fiduciary Responsibility ?

(contacting the local tax office to request a refund would result in a "Credit" applied to the landlord's tax account and not refund the payments made since vacating the rental facility)

Finally, if the above constitutes a breach of fiduciary responsibility, would this qualify as a breach in our rental agreement that would terminate our rental agreement which extends into 2015 ?

I am not an attorney nor have I ever had the need for an attorney, if my argument is valid I will make arrangements to move forward to terminate our current rental agreement.

Best Regards,


Asked on 8/07/14, 10:14 am

1 Answer from Attorneys
John Davidson Law Office of John A. Davidson

People you're asked to provide a zip code for a reason. First if you just say city it helps to determine what city you're talking about.

On the other hand your question is remarkably well formatted. Many times I wonder if law guru charges extra for carriage returns.

Assuming for the moment what city you're in doesn't matter. I'm left with a question as to why YOU are paying the U&O tax? Why wasn't it baked into the rent? Since I don't know what city you're in there is no way what the usual and customary way such taxes are handled.

Whether any breach has occurred one woud have to read the lease to know.

{John}

Read more
Answered on 8/07/14, 10:54 am


Related Questions & Answers

More Landlord & Tenants questions and answers in Pennsylvania