BILL NUMBER: SB 1844	CHAPTERED  09/24/00

	CHAPTER   613
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 12, 2000
	AMENDED IN SENATE   APRIL 13, 2000
	AMENDED IN SENATE   MARCH 27, 2000

INTRODUCED BY   Senator Kelley

                        FEBRUARY 24, 2000

   An act to amend Section 469 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1844, Kelley.  Property taxation:  personal property:  audit
threshold.
   Existing property tax law requires a county assessor to audit the
books of a taxpayer's profession, trade, or business at least once
every 4 years, if locally assessable trade fixtures and business
tangible personal property owned, claimed, or possessed by the
taxpayer have a full value of at least $300,000.
   This bill would increase the audit threshold amount to $400,000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 469 of the Revenue and Taxation Code is amended
to read:
   469.  In any case in which locally assessable trade fixtures and
business tangible personal property owned, claimed, possessed, or
controlled by a taxpayer engaged in a profession, trade, or business
has a full value of four hundred thousand dollars ($400,000) or more,
the assessor shall audit the books and records of that profession,
trade, or business at least once each four years.  If the board
determines the value of property pursuant to Section 15640 of the
Government Code, that determination may be deemed an audit by the
assessor for purposes of this section.
   Upon completion of an audit of the taxpayer's books and records,
the taxpayer shall be given the assessor's findings in writing with
respect to data that would alter any previously enrolled assessment.

   Equalization of the property by a county board of equalization or
assessment appeals board pursuant to Chapter 1 (commencing with
Section 1601) of Part 3 of this division shall not preclude a
subsequent audit and shall not preclude the assessor from levying an
escape assessment in appropriate instances, but shall preclude an
escape assessment being levied on that portion of the assessment that
was the subject of the equalization hearing.
   If the result of an audit for any year discloses property subject
to an escape assessment, then the original assessment of all property
of the assessee at the location of the profession, trade, or
business for that year shall be subject to review, equalization and
adjustment by the county board of equalization or assessment appeals
board pursuant to Chapter 1 (commencing with Section 1601) of Part 3
of this division, except in those instances when the property had
previously been equalized for the year in question.
   If the audit for any particular tax year discloses that the
property of the taxpayer was incorrectly valued or misclassified for
any cause, to the extent that this error caused the property to be
assessed at a higher value than the assessor would have entered on
the roll had the incorrect valuation or misclassification not
occurred, then the assessor shall notify the taxpayer of the amount
of the excess valuation or misclassification, and the fact that a
claim for cancellation or refund may be filed with the county as
provided by Sections 4986 and 5096.