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I'm subleasing my house and used an online template. However it added this clause regarding taxes that I don't really understand.

  1. The Subtenant will pay any privilege, excise and other taxes duly assessed against the business of the Subtenant, the Subleased Premises and any personal property on or about the Subleased Premises. The Subtenant will avoid the assessment of any late fees or penalties.

What exactly does this entail?

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If your business doesn't pay its sales taxes or certain kinds of excise taxes, like tobacco taxes, alcohol taxes, and gasoline taxes, of property taxes on moveable business property, that can result in a tax lien being imposed on the business or even conceivably, its leasehold. If taxes or utilities for which the tenant is responsible are paid late, late fees and penalties can be imposed.

This clause of the lease prohibits the tenant from not paying its taxes or paying bills late.

The main real concern is not that the landlord will be held responsible for these things but that a business that isn't paying its taxes or isn't paying its bills on time is on the verge of going under, and the landlord wants to be able to evict the tenant at the first sniff of financial insecurity due to a late fee or an unpaid tax bill, rather than having to wait until the tenant is unable to pay the rent and is unable to pay for damages to the premises that are the tenant's responsibility.

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