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I sold a small business on a 5-year contract last fall. Is it my responsibility to pay this year's personal property and real estate taxes or the new owner's?

That's a function of a couple of things:
1. (Previously noted:)
What does the contract say?

2. Your state and local laws prescribe the schedule for valuation, assessment, and collection of property taxes.

Federal income tax law - Code §164(d)- provides for the apportionment of property taxes between buyer and seller and closing, for the deductibility of the next bill to be issued, in according to the "real property tax year", not necessarily the calendar year.

But assuming it's legal under state law, the parties may provide in their contract of sale that the buyer (or seller) will pay the tax bill for that year. Unless it's very late in the (property tax) year, the buyer will generally be getting the next bill. Local assessment updates can vary, depending on how fast they pick up the deeds or transfer taxes get filed, and update their records.

Bill
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