California Business Tax Audits
L. 2008, A550, effective 01/01/2009,
deletes the requirement that a taxpayer own, claim, possess, or control locally assessable trade fixtures and business tangible property with a full value of at least $400,000 in order to be audited. The new legislation requires the county assessor to annually conduct a significant number of audits to encourage accurate and proper reporting. 50% of the required audits must be performed on those taxpayers that have the largest assessments of locally assessable trade fixtures and business tangible personal property in the county.