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To:From:Submitted by:Subject:

CITY OF CARMEL BY THE SEACouncil Report

November 5, 2013Honorable Mayor and Members of the City CouncilJason Stilwell, City AdministratorSusan Paul, Administrat ive Services DirectorConsideration of a Resolution Authorizing the Examination of Sales orTransactions and Use Tax Records by Individuals or Positions Named inResolution.

Recommendation s): It is recommended that the City Council adopt the Resolution .Executive Summary: California Revenue and Taxation Code section 7056 restricts the release

of confidential transaction and use tax records to officers or employeesof local jurisdictions who are designated by a resolution of the legislativebody of the jurisdiction, or by a letter of designation, if such authority todesignate has been granted by resolution . This Resolution provides thatauthority. This data is used as an aid in collecting sales and use tax.

Analysis/Discussion: Measure D was passed by the voters in 2012. With the passage of themeasure, the residents of the City of Carmel-by-the-Sea approved anadditional 1 sales tax to be collected along with the standard BradleyBurns sales tax amount. The transaction data related to this tax is veryimportant to our analysis of tax compliance and economic trends. TheCalifornia State Board of Equalization requires that we pass a resolutionspecifically naming those that are authorized to receive this transactiondata in order to assist us in our analysis. Those that are to be authorizedare the City Administrator, whomever the City Administrator authorizes,and Hinderliter, de lamas and Associates {HdL). The latter are our salestax consultants.

Fiscallmpact: None.

Budgeted yes/no) Funding Source general fund, grant, state)Not applicable Not applicable

Previous CouncilAction/Decision History:

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Attachment

Resolution

Reviewed by Yity dministrator City ttorney Administrative Services G_Asst City Admin Dir of CP Dir of Public SvcsPublic Safety Dir Library Dir OtherCity Engineer

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CITY OF CARMEL BY THE SEACITY COUNCIL

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEAAUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAXRECORDSWHEREAS, pursuant to Ordinance No. 2012-8 the City of Cannel-by-the-Sea entered into acontract with the State Board of Equalization to perform all functions incident to theadministration and collection of local sales and use taxes; andWHEREAS, pursuant to Resolution 2012-82 the City of Carmel-by-the-Sea entered into acontract with the State Board of Equalization to perfmm all functions incident to theadministration and collection oflocal transactions and use taxes; andWHEREAS, the ity Council of the City of Cannel-by-the-Sea deems it necessary forauthorized representative of the City to examine confidential sales and transactions anduse tax records of the Board pertaining to sales and transactions and use taxes collectedby the Board for the City; andWHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certainrequirements and conditions for the disclosure of Board records and establishes criminalpenalties for the unlawful disclosure of information contained in, or derived from sales ortransactions and use tax records of the Board; and

WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any persondesignated by the City shall have an existing contract to examine the City s sales andtransactions and use tax records.NOW, THEREFORE BE IT RESOLVED AND ORDERED THAT THE CITY COUNCIL OFTHE CITY OF CARMEL-BY-THE-SEA DOES AS FOLLOWS:

Section 1. That the Administrative Services Director or other officer or employee of theCity designated in writing y the City Administrator to the State Board of Equalization(hereafter referred to s Board) is hereby appointed to represent the City with authority toexamine all of the sales or transactions and use tax records of the Board pertaining tosales or transactions and use taxes collected for the City by the Board of Equalizationpursuant to the contract between the City and the Board under the Bradley-BumsUniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. Theinformation obtained by examination of Board records shall be used only for purposesrelated to the collection of City sales or transactions and use taxes y the Board pursuantto the contract.Section 2. That Hinderliter, de Lamas and Associates (HdL) is hereby designated to


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examine the sales and transactions and use tax records of the Board pertaining to salesand transactions and use taxes collected for the City y the Board. The person or entitydesignated by this section meets all of the following conditions:a has an existing contract with the City to examine sales and transactions and use tax

records;b) is required by that contract to disclose information contained in, or derived from thosesales and transactions and use tax records only to the officer or employee authorizedunder Section 1 of this resolution to examine the information;c is prohibited by that contract from performing consulting services for a retailer during theterm of that contract;d) is prohibited by that contract from retaining the information contained in, or derived fromthose sales and transactions and use tax records after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained y examination of Board recordsshall be used only for purposes related to the co11ection of City s sales and transactionsand use taxes by the Board pursuant to the contracts between the City and the Board ofEqualization.PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEAthis th day ofNovember 2013 by the following roll call vote:

A YES: COUNCIL MEMBERS:NOES: COUNCIL MEMBERS:ABSENT: COUNCIL MEMBERS:ABSTAIN: COUNCILMEMBERS:

ATTEST:

Daryl A Betancur, CMCDeputy City Clerk

SIGNED,

Jason Burnett, MAYOR

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Download - Resolution Authorizing the Examination of Sales and Use Tax Records 11-2013.pdf

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