The California Constitution and the Revenue and Taxation Code state that all property is taxable, including business property, unless it is specifically exempt by law.
Examples of taxable business property are: Supplies, machinery & equipment used in the profession or trade, tools, office furniture & equipment, computer hardware and operating systems, leasehold or tenant improvements to the building for the business, including electrical and plumbing for the machinery, equipment or business use. Property leased, loaned, or rented to others, construction in progress, underground & above ground tanks, vending machines, and water dispensers.
Examples of exempt property are: Inventory for sale, computer application software such as payroll programs, excel, word.