Glossary · Reading the business
Property Tax
In short
Taxes levied by local governments on real estate owned by the business. These are an ongoing operating expense that directly impacts the business's profitability and cash flow.
What it means in a deal
If the business owns its real estate, property taxes will be a recurring expense you must factor into your cash flow projections. During due diligence, verify the current property tax assessments and ensure there are no outstanding liens or unexpected increases that could impact future profitability.
Related terms
Common questions about Property Tax
- Do unfiled tax returns or overdue taxes prevent SBA approval?
- What if the business I am buying has unfiled tax returns or overdue payroll taxes?
- What if the business I'm buying has unfiled tax returns or overdue payroll taxes?
- If I have unfiled tax returns or overdue taxes, will that prevent SBA 7(a) loan approval?
- What if the business I'm acquiring has pending tax audits or unresolved tax issues?
- Can an SBA 7(a) loan cover the property taxes due at closing for the acquired real estate?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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