DATE:
September 19, 2023
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Assistant City Manager
SUBJECT:
Authorizing the Examination of Sales and Use Tax Records
RECOMMENDED ACTION
It is recommended that the City Council approve Resolution No. 2023-57, authorizing the examination of sales and use tax records.
BACKGROUND
The State of California Revenue and Taxation Code Section 7056 authorizes the examination of confidential sales and use tax data to officers or employees of local jurisdictions who are designated by resolution of the legislative body of the jurisdiction. The review of confidential information is governed by state law and sets certain requirements and conditions for the disclosure of sales and use tax records. State law also establishes criminal penalties for the unlawful disclosure of sales and use tax information.
In 1994, the City Council approved Resolution 94-14, which designated the City Manager and Finance Director as authorized City officers with the authority to examine sales and use tax records of the State Board of Equalization (BOE). The same year, the City Council also approved Resolution 94-81, authorizing Hinderliter, de Llamas and Associates (HdL) access to receive and review sales and use tax data received from the BOE, as an authorized representative for the City. HdL examines and monitors Hesperia’s sales tax records to ensure the tax is appropriately allocated to the City of Hesperia.
ISSUES/ANALYSIS
As a result of the Taxpayer Transparency and Fairness Act of 2017, the BOE was restructured and services previously provided by BOE, such as registration, tax and fee filings, and tax and fee payments, were transferred to the California Department of Tax and Fee Administration (CDTFA). HdL was recently notified by the CDTFA that, due to the age of the previous resolutions (Resolutions 94-14 and 94-81), the CDTFA has requested updated resolutions authorizing the examination of confidential sales and use tax records.
A new resolution (Resolution 2023-57) will provide an opportunity for the City to update the authorized officer/position list for the titles that are now in use, which include the City Manager and Assistant City Manager. If approved, these titles will have the authority to examine the sales and use tax records of the CDTFA, and the City Manager will have the authority to designate, in writing, additional staff positions with an ability to view the confidential information for designated governmental purposes, including revenue management and budgeting. Further, approval of Resolution 2023-57, will continue to authorize HdL to operate as an authorized representative of the City, consistent with the services agreement between the City and HdL.
FISCAL IMPACT
There is no direct fiscal impact with the approval of this item.
ALTERNATIVES
Provide alternative direction to staff.
ATTACHMENTS
Resolution No. 2023-57 – Authorizing the Examination of Sales and Use Tax Records City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Authorizing the Examination of Sales and Use Tax Records September 19, 2023