(a) Upon execution of the lease, the lands become taxable to the extent of its leasehold interest and lessee shall pay all real property taxes levied upon such leasehold interest in these lands, and shall pay any special assessments and taxes as if the lessee was the owner of the land.

(b) Rent shall be paid annually in advance. The payments shall be prorated to conform to the City of Kenai’s fiscal year beginning July 1st and ending June 30th. The lessee shall have the option of making payments on a monthly basis.

(c) Lessee shall be responsible for all sales taxes applicable to its operations or due on payments under the lease.