A unit on ILT (in lieu taxes) is subject to what requirement?

The requirement for a unit on in lieu taxes (ILT) includes several key aspects which are encompassed in the correct option. Firstly, a unit on ILT is indeed required to pay annual fees to the Department. This ensures that the taxing authority can collect revenue similar to what would be paid if traditional taxes were applied.

Additionally, the fees associated with ILT are structured to depreciate over an 18-year period, which reflects a systematic approach to how the financial obligations of the unit will decrease over time, impacting the overall cost management for the entity responsible for the unit.

Furthermore, there is a provision that stipulates fees are required for transferring the unit to another person. This requirement ensures that the new owner is also held accountable for the associated costs and regulatory obligations linked to the unit, maintaining continuity and compliance with the overall taxation framework.

Since all these components are integral to the functioning and regulation of units on ILT, it is accurate to conclude that all of the statements correctly reflect the requirements associated with such units.