RESOLUTION NO. 2024-102
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA, CALIFORNIA AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS WHEREAS, pursuant to Ordinance Number 78, the City of Fontana (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, the City Council of the City of Fontana deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales and use tax records of the Department pertaining to sales and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department; NOW, THEREFORE, BE IT RESOLVED by the Mayor and the City Council of the City of Fontana, California as follows:
Section 1. That the Chief Financial Officer, Deputy Chief Financial Officer, Revenue Operations Manager or other officer or employee of the City designated in writing by the Chief Financial Officer to the California Department of Tax and Fee Administration (hereafter referred to as Department) is hereby appointed to represent the City with authority to examine sales and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.
Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to that contract and for purposes related to the following governmental functions of the City:
Determination that businesses within the City of Fontana are remitting sales and use tax pursuant to the State Code.
Performing various “Trend Analysis” such as revenue and budget forecasting as well as fiscal modeling, planning and impact studies.
Determination that businesses within the City are licensed under the City’s Business Tax Code.
Section 3. That Hinderliter de Llamas & Associates dba HDL Companies is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and Hinderliter de Llamas & Associates dba HDL Companies:
has an existing contract with the City to examine those sales or transactions and use tax records; is required by that contract to disclose information contained in, or derived from, those sales and use tax records only to an officer of the City who is authorized (under Section 7056 of the California Revenue and Taxation Code) to examine the information. is prohibited by that contract from performing consulting services for a retailer during the term of that contract; is prohibited by that contract from retaining the information contained in, or derived from those sales and use tax records, after that contract has expired.
NOW, THEREFORE BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.
Section 5. This resolution supersedes Resolutions 2000-80 and 2009-94.
APPROVED AND ADOPTED this 10th day of September 2024.
READ AND APPROVED AS TO LEGAL FORM:
City Attorney
I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 10th day of September, 2024, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk of the City of Fontana
Mayor of the City of Fontana
ATTEST:
City Clerk