The DMA Way

Personal Property Tax Audit Defense

by DMA Staff | Oct 24, 2016

Our client, a large supplier of medical linens used by hospitals and other healthcare industries, had been under examination by a California county assessor’s office for personal property taxes. Unfortunately, the audit was not going well and the client had received an indication that their assessment was going to triple. The client had worked very hard to comply with all data requests, but the volume of the data was enormous and there were specific industry-related issues that were not easily explained or understood.

DMA took over the audit at the client’s request and immediately began working with the Assessor’s Office to persuade them that the uniqueness of the client’s business required a different assessment methodology. The approach was met favorably, and DMA began to receive buy-in from the Assessor’s Office by substantiating the revised assessment methodology with real world examples, resulting in approximately $60,000 per year in tax savings for our client.

In addition, at the Assessor’s Office request, DMA brought the new assessment methodology to the County Assessment Appeals Board for a hearing to help establish a new standard and provide guidance should this issue arise in any other California counties.

Through this effort, DMA’s client also received certainty that the issue will be supported during future audits, and that the client will benefit from the same issue in the 10 other California counties in which it operates.

Please do not hesitate to contact your local DMA office should you have specific questions or requests.