REQUEST FOR CITY COUNCIL ACTION
DATE: 07/21/2021
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
Resolution No. 2021-093 authorizing the examination of sales or transactions and use tax records
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EXECUTIVE SUMMARY:
With the passage of Measure X, an updated resolution must be approved by the City's governing body to authorize City staff and the sales tax consultant to examine sales or transactions and use tax records Sales tax revenues are an important revenue stream to fund the City's operations. In Fiscal Year 2022, sales tax is estimated to provide 43% of the General Fund revenues. Sales tax records are reviewed to audit information to ensure it is reported under the correct municipality, to assist with General Fund revenue projections, and for economic development and strategic planning purposes (business attraction, expansion, and retention).
RECOMMENDED ACTION:
Recommended action
That the City Council approve Resolution No. 2021-093 authorizing the examination of sales or transactions and use tax records.
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BACKGROUND & HISTORY:
Resolution No. 2001-01 is currently on file with the California Department of Tax and Fee Administration (CDTFA). That resolution provides authorization for certain City of Corona staff and the City's sales tax consultant, Hinderliter, De Llamas & Associates (HdL), to examine confidential sales and use tax records that pertain to the City of Corona. The resolution was adopted in compliance with Section 7056 of the California Revenue and Taxation Code which set requirements and conditions for the disclosure of sales tax records.
ANALYSIS:
In November 2020, a majority of the City of Corona voters approved a 1% transactional use tax, known as Measure X. The increase to the City's sales tax rate became effective July 1, 2021. The transactional use tax data is reported to the CDTFA, along with the regular sales tax information. The CDTFA is responsible for managing...
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