Bailey v. Timpone

Plaintiffs are lessees under a lease dated August 31, 1974, and assigned to them effective February 24, 1975. At the end of 1975, plaintiffs gave notice of the exercise of their option to renew the lease for 10 years. Under the terms of the lease the determination of the amount of rent to be paid on renewal was submitted to binding arbitration. The issue, as presented by the parties, is whether the income on which plaintiffs’ rent is to be calculated includes funds received or charges added to prices on account of plaintiffs’ tax liability under the Retailers’ Occupation Tax Act (Ill. Rev.…