Personal Property Taxes

Taxes that are paid on the personal property of a business other than inventory, such as the hard assets used in the operations of the business, including machinery, computers, equipment, and so on.

See Also

Successor’s liability, tax clearance.

Tips

This can be quite confusing as it seems it should be called “Business Property Taxes.” Don’t let the name confuse you. It simply means property taxes that are paid on a business’s tangible assets, or personal property, as opposed to real property. A buyer may assume successor’s liability if they purchase a business and the seller is delinquent on their personal property taxes. Savvy buyers request a tax clearance certificate for personal property tax.