After PPT assessment is billed, who may invoice the lessee to collect?

• A. The lessee is billed by the tax authority.
• B. The tax authority handles collection.
• C. The lessor pays the PPT and collects later.
• D. The lessor may invoice the lessee to collect.

Answer: (D)

In a pass-through tax arrangement for leases, the lessor is the party responsible for paying the tax authority, but the lessee is the one who ultimately bears the cost. After the PPT assessment is issued, the lessor typically invoices the lessee for the PPT amount so the lessee reimburses that tax cost. This keeps the lessee financially responsible for the use of the property while the lessor handles the payment to the tax authority and collects the amount from the lessee. The tax authority itself does not usually bill the lessee directly, and simply letting the lessor absorb the tax without pursuing reimbursement would disrupt the pass-through structure.