Property tax audits are becoming more common as local jurisdictions seek additional revenue and leverage improved technology to identify non-filers and reporting discrepancies. As audit activity increases, businesses face heightened scrutiny around asset reporting, leasehold improvements, expensed assets and other areas that can create significant exposure if not properly managed.
In this episode of Cherry Bekaert's Tax Services Podcast, Property Tax Director, Stephen Bell, and Property Tax Manager, Cynthia Plummer, discuss the growing trend of property tax audits and share practical guidance to help organizations prepare. Drawing on decades of experience advising businesses across industries, Stephen and Cynthia explore why audit activity is increasing, which industries are most likely to be targeted, and the common triggers that prompt taxing authorities to take a closer look.
Key discussion topics include:
- 1:34 – Why property tax audits are increasing and the role of revenue pressures, technology and expanded enforcement efforts
- 5:51 – Common audit triggers, including business size, reporting changes, exemption claims and missed filings
- 10:07 – Industries most frequently impacted by property tax audits, including manufacturing, data centers, healthcare and technology
- 11:39 – Why organizations should pay close attention to audits and the potential impact of multi-year assessments, penalties and interest
- 15:07 – How to evaluate audit requests, understand statutes of limitation and navigate audit waivers
- 20:32 – Common audit findings involving expensed assets and capitalization thresholds
- 23:11 – Leasehold improvements, real versus personal property classifications and avoiding double taxation
- 25:56 – Ghost assets, reported cost issues and maintaining historical asset records following mergers and acquisitions
- 28:39 – Construction in progress, repairs versus replacements, intangible property and leased asset reporting
- 31:32 – The importance of accurate asset classifications and depreciation categories
Whether your organization manages property tax filings in a single jurisdiction or across multiple states, this episode offers valuable insights to help you proactively prepare for audits, minimize risk, and identify opportunities to improve property tax compliance and reporting accuracy.
If your organization is facing a property tax audit, managing compliance across multiple jurisdictions or evaluating potential reporting risks, Cherry Bekaert's Property Tax team can help. Our professionals work with businesses across industries to navigate audit challenges, strengthen compliance processes and identify opportunities to reduce property tax exposure.
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