It is recommended that the City Council: (1) accept the project as complete; (2) authorize the City Clerk to execute the Notice of Completion; and (3) approval a final project change order in the amount of $44,288.80.
ATTACHMENTS
A. Towo Parking Lot at La Puente Dog Park NOC
RECORDING REQUESTED BY
CITY OF LA PUENTE
AND WHEN RECORDED MAIL TO
NAME CITY OF LA PUENTE
CITY CLERK
STREET 15900 East Main Street
ADDRESS
CITY La Puente CA 91744
STATE California
ZIP 91744
SPACE ABOVE LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is City of La Puente
3. The full address of the owner is 15900 East Main Street, La Puente, CA 91744
4. The nature of the interest or estate of the owner is: in fee. (if other than Fee, strike “In fee” and insert, for example, “purchaser under contract of purchase”, or “lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. The full names and addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
7. A work of improvement on the property hereinafter described was substantially completed on December 4, 2025.
8. The work done was: Approximately 19,723 square feet of flat work for a concrete parking area at La Puente Dog Park and Kennel.
9. The names of the contractor, if any, for such work of improvement was: Towo Enterprise Inc.
April 14, 2026
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
10. The property on which said work of improvement was completed is in the City of: La Puente County of Los Angeles, State of CA, and is described as follows: Concrete Parking Area at La Puente Dog Park.
11. The street address of said property is 16550 Old Valley Boulevard (If no street address has been officially assigned, insert “none”.) Dated
Abraham Tellez, Director of Development Services, City of La Puente (Signature of Owner or corporate officer of Owner named in paragraph 2, or his agent)
VERIFICATION
I, the undersigned, say: I am the City Clerk of the City of La Puente, the declarant of the foregoing Notice of Completion:
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on _______________ at La Puente, CA
Martha Torres, City Clerk, City of La Puente
(Personal signature of the individual who is swearing that the contents of the Notice of Completion are true) Attachment A
City of La Puente
Agenda Report
Agenda Item No. D.7
To: Mayor and City Council For meeting of: July 14, 2026 From: Bob Lindsey, City Manager
By: Abraham Tellez, Director of Development Services
Subject: CONSIDERATION OF ACCEPTANCE OF A NOTICE OF COMPLETION FOR THE
PUBLIC RESTROOM PROJECT AT THE LA PUENTE COMMUNITY DOG
PARK/KENNEL
BACKGROUND/DISCUSSION
On December 9, 2025, the City Council awarded a contract to Public Restroom Company in the amount of $241,227.00 for the purchase and installation of a prefabricated public restroom at the La Puente Dog Park/Kennel (the "Project").
Public Restroom Company commenced construction of the Project on December 10, 2025, and substantially completed the work on May 7, 2026. The Project included the purchase, delivery, and installation of a prefabricated public restroom facility measuring approximately 19 feet, 4 inches in length, 8 feet, 8 inches in width, and 12 feet, 4 inches in height. The facility consists of two (2) Americans with Disabilities Act (ADA)- compliant restroom stalls separated by a small mechanical room. All work was completed in accordance with the approved plans and specifications.
FISCAL IMPACT
The total cost of the Project was $241,227.00. Funding for the Project was provided through the Fiscal Year 2025-26 Capital Improvement Program budget, Fund 283 (Measure A).
RECOMMENDATION
It is recommended that the City Council: (1) accept the Project as complete; and (2) authorize the City Clerk to execute and file the Notice of Completion.
ATTACHMENTS
A. Public Restroom Company Restroom at La Puente Dog Park NOC
RECORDING REQUESTED BY
CITY OF LA PUENTE
AND WHEN RECORDED MAIL TO
NAME CITY OF LA PUENTE
CITY CLERK
STREET 15900 East Main Street
ADDRESS
CITY La Puente CA 91744
STATE California
ZIP 91744
EXEMPT FROM FILING FEES PER GOV. CODE SECTION 6103 SPACE ABOVE LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is City of La Puente
3. The full address of the owner is 15900 East Main Street, La Puente, CA 91744
4. The nature of the interest or estate of the owner is: in fee. (if other than Fee, strike “In fee” and insert, for example, “purchaser under contract of purchase”, or “lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. The full names and addresses of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
7. A work of improvement on the property hereinafter described was substantially completed on May 7, 2026.
8. The work done was: The purchase and installation of a prefabricated public restroom at the La Puente Dog Park/Kennel.
9. The names of the contractor, if any, for such work of improvement was: Public Restroom Company December 9, 2025
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
10. The property on which said work of improvement was completed is in the City of: La Puente County of Los Angeles, State of CA, and is described as follows: The purchase and installation of a prefabricated public restroom at the La Puente Dog Park/Kennel.
11. The street address of said property is 16550 Old Valley Boulevard (If no street address has been officially assigned, insert “none”.) Executed on _______________ at La Puente, CA ___________________________________________________________________ Abraham Tellez, Director of Development Services, City of La Puente (Signature of Owner or corporate officer of Owner named in paragraph 2, or agent)
VERIFICATION
I, the undersigned, say: I am the City Clerk of the City of La Puente, the declarant of the foregoing Notice of Completion. I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on _______________ at La Puente, CA
___________________________________________________________________ Martha Torres, City Clerk, City of La Puente
(Personal signature of the individual who is swearing that the contents of the Notice of Completion are true) Attachment A
City of La Puente
Agenda Report
Agenda Item No. E.1
To: Mayor and City Council For meeting of: July 14, 2026 From: Bob Lindsey, City Manager
By: Martha Torres, MPA, CMC, City Clerk
Troy Grunklee, CPA, Director of Administrative Services Subject: CONSIDERATION OF A RESOLUTION RECITING THE FACTS OF THE CITY OF LA PUENTE JUNE 2, 2026, CONSOLIDATED SPECIAL MUNICIPAL ELECTION; SECOND READING AND ADOPTION OF ORDINANCE NO. 26-995, AN ORDINANCE OF THE PEOPLE OF THE CITY OF LA PUENTE, CALIFORNIA INCREASING THE CITY’S EXISTING GENERAL PURPOSE HALF PERCENT (1/2%) TRANSACTIONS AND USE TAX RATE TO A NEW RATE OF ONE PERCENT (1%) AS CODIFIED UNDER CHAPTER 2.34 (PUBLIC SAFETY, VITAL SERVICES NEIGHBORHOOD PROTECTION MEASURE) OF TITLE 2 (ADMINISTRATION) OF THE LA PUENTE MUNICIPAL CODE; AND RESOLUTIONS IMPLEMENTING MEASURE LP
BACKGROUND/DISCUSSION
On March 4, 2026, the City Council approved Resolution No. 26-5975 calling a special election to be held on June 2, 2026, for the submission of a transactions (sales) and use tax ballot measure ("Measure LP") to La Puente voters. The election was duly conducted, votes were cast, and returns were made and declared in the time, form, and manner prescribed by the California Elections Code and applicable State law.
The Los Angeles County Registrar-Recorder/County Clerk has since completed the official canvass of the returns and certified the election results. The City Council is required to adopt a resolution reciting the facts of the election and declaring the results. The accompanying resolution sets forth the final tally of votes cast. Based upon this certified tally, Measure LP has received the required majority vote and is hereby deemed adopted and ratified.
The California Department of Tax and Fee Administration (CDTFA) administers and collects the Transactions and Use Taxes for all jurisdictions within the State. Accordingly, they will also be responsible for the administration and collection of the City’s Transactions and Use Tax. In order to complete these tasks and complete appropriate preparations for collection of the new tax, the CDTFA requires adoption of a resolution authorizing the City Manager to execute the necessary agreements to allow the CDTFA to administer and collect the additional tax as approved by the voters.
Additionally, Section 7056 of the Revenue and Taxation Code requires that an agency designate by resolution individuals authorized to examine confidential transaction and use tax records provided by the CDTFA. The City currently contracts with Hinderliter, de Llamas & Associates (HdL) to provide sales and use tax auditing, projection and recovery services. These services include the examination of sales and use tax records to ensure that these taxes are properly attributed to the City and facilitating the process of correcting misallocations by the CDTFA so that revenue is remitted to the City. Accordingly, staff is recommending that the City Council Agenda Report – Resolutions for June 2, 2026, Special Election and Implementing Measure LP and Ordinance No. 26-995 For City Council And Successor Agency Meeting of July 14, 2026
approve a resolution authorizing access to the transaction and use tax records provided by the CDTFA.
FISCAL IMPACT
The CDTFA will assess the City a one-time startup fee of approximately $7,000 plus an annual administrative fee, which is estimated at .50% to .80% of the new rate per year. HdL will charge the City an additional $100.00 per month for adding the new half-cent sales tax in their quarterly updates to the City. Additionally, HdL will charge 25% of audit recovery amounts for the new half-cent sales tax. Based on the current half cent sales tax that is generated from Measure LP, an estimate of an additional 1/2 sales tax would generate an additional $3.6 million annually.
RECOMMENDATION
It is recommended that the City Council: (1) adopt Resolution No. 26–6010 reciting the facts of the City of La Puente, June 2, 2026, Consolidated Special Municipal Election; (2) waive the full reading and adopt Ordinance No. 26-995 and read by title only; (3) adopt Resolution No. 26-6011, Authorizing the City Manager to execute Agreements with the California Department of Tax and Fee Administration for implementation of a local transaction and use tax; and (4) adopt Resolution No. 26-6012, Authorizing Examination of Sales, Use and Transactions Tax Records.
ATTACHMENTS
A. Election Certification Resolution w Exhibit A
B. Measure LP Ordinance
C. Measure LP Implementation Resolution re Agreements w Exhibits A and B D. Measure LP Implementation Resolution re Examination
RESOLUTION NO. 26-6010 PAGE 1 OF 2 JULY 14, 2026
RESOLUTION NO. 26-6010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA PUENTE, CALIFORNIA, RECITING THE FACT OF
A JUNE 2, 2026, CONSOLIDATED SPECIAL MUNICIPAL
ELECTION AND DECLARING THE RESULTS OF THE
SAME AND SUCH OTHER MATTERS AS MAY BE
PROVIDED BY LAW
WHEREAS, on March 4, 2026, the La Puente City Council (“City Council”) approved Resolution No. 26-5975, which called a June 2, 2026, special election, to submit to La Puente voters an ordinance that increases the City’s transactions and use tax rate, currently set at a half percent (1/2%), by up to an additional half percent (1/2%), for a total rate not to exceed one percent (1%); and
WHEREAS, the ballot measure seeking approval of the ordinance was given the letter designation Measure “LP” and was presented to La Puente voters as follows:
WHEREAS, notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and
WHEREAS, the Los Angeles County Registrar-Recorder/County Clerk’s office has canvassed the returns of the election and certified the results, which were received and are attached and made a part hereof as Exhibit “A”.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA PUENTE HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS:
SECTION 1. That the whole number of ballots cast in the precincts except vote by mail was 1,225; that the whole number of vote by mail ballots cast in the City was 4,556; making a total of 5,781 ballots cast in the City.
Keep La Puente Sales Tax Revenues Local Measure
To protect La Puente’s funding for public safety; street/ sidewalk maintenance/ repair; park maintenance/ enhancements; youth/ senior programs and any other governmental purposes and prevent the County of Los Angeles and other taxing agencies from seizing additional sales tax revenues generated in La Puente for themselves, shall La Puente’s 1/2% transactions (sales) and use tax be increased to 1% raising $3.6 million annually, subject to the ability to suspend application of the increased rate?
YES
NO
Attachment A
RESOLUTION NO. 26-6010 PAGE 2 OF 2 JULY 14, 2026
SECTION 2. The ballot measure that was the subject of the special election sought was given the letter designation Measure “LP” and was presented to La Puente voters as follow:
SECTION 3. That the number of votes given at each precinct and the number of votes given in the City for and against Measure LP are as listed on Exhibit “A”.
SECTION 4. That as a result of the election, a majority of the voters voting on Measure LP did vote in favor of it, and that Measure LP was carried, and shall be deemed adopted and ratified.
SECTION 5. The City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election, showing: (1) the whole number of ballots cast in the City; (2) the measure voted upon; (3) the number of votes given at each precinct for and against Measure LP; and (4) the total number of votes for and against Measure LP.
SECTION 6. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.
SECTION 7. That the City Clerk shall certify to the adoption of this Resolution and that the same shall be in full force and effect.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
______________________________
Charlie Klinakis, Mayor
ATTEST:
_____________________________________
Martha Torres, MPA, CMC, City Clerk
Keep La Puente Sales Tax Revenues Local Measure
To protect La Puente’s funding for public safety; street/ sidewalk maintenance/ repair; park maintenance/ enhancements; youth/ senior programs and any other governmental purposes and prevent the County of Los Angeles and other taxing agencies from seizing additional sales tax revenues generated in La Puente for themselves, shall La Puente’s 1/2% transactions (sales) and use tax be increased to 1% raising $3.6 million annually, subject to the ability to suspend application of the increased rate?
YES
NO
Exhibit A
ORDINANCE NO. 26-995 PAGE 1 OF 12 JULY 14, 2026
ORDINANCE NO. 26-995
AN ORDINANCE OF THE PEOPLE OF THE CITY OF LA
PUENTE, CALIFORNIA INCREASING THE CITY’S
EXISTING GENERAL PURPOSE HALF PERCENT (1/2%)
TRANSACIONS AND USE TAX RATE TO NEW RATE OF
ONE PERENT (1%) AS CODIFIED UNDER CHAPTER 2.34
(PUBLIC SAFETY, VITAL SERVICES NEIGHBORHOOD
PROTECTION MEASURE) OF TITLE 2
(ADMINISTRATION) OF THE LA PUENTE MUNICIPAL
CODE
WHEREAS, pursuant to Revenue and Taxation Code Section 7285.9 et seq., the City of La Puente (“City”) has the authority to collect a local transaction and use tax and to increase that transactions and use tax; and
WHEREAS, pursuant to Elections Code Section 9222, the La Puente City Council (“City Council”) has the authority to submit measures to be considered by La Puente voters at a special municipal election; and
WHEREAS, pursuant to Chapter 2.34 (Public Safety, Vital Services Neighborhood Protection Measure) of Title 2 (Administration) of the La Puente Municipal Code, the City currently levies a voter-approved half cent (or 1/2%) transactions and use tax, the proceeds of which are deposited into the general fund to be used for any general municipal purpose; and WHEREAS, the City Council called a June 2, 2026, special election, to submit to La Puente voters an ordinance that increases the City’s transactions and use tax rate, currently set at a half percent (1/2%), by up to an additional half percent (1/2%), for a total rate not to exceed one percent (1%); and
WHEREAS, pursuant to Government Code Sections 53723 and 53724(b), Revenue and Taxation Code Section 7285.9, the placement on the ballot of any proposed ballot measure increasing or extending a general purpose transactions and use tax must be approved by no less than two-thirds of all the members of the City Council (i.e., by at least 4 “yes” votes), subject also to approval by La Puente voters by a simple majority of votes cast (50% plus 1) at a City election; and
WHEREAS, Section 2(b) of Article XIIIC of the California Constitution further provides that an election required to approve the establishment of, or increase to, a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency, as was the situation here, declared by a unanimous vote of members present of the governing body (See 75 Ops Cal Atty Gen 47 (1992), citing Tidewater S. Ry., Co. v Jordan (1912) 163 C 105); and WHEREAS, in compliance with Government Code Sections 53723 and 53724(b), Revenue and Taxation Code Section 7285.9, and Section 2(b) of Article XIIIC of the California Constitution, the City Council at its meeting of March 4, 2026, approved City Council Resolution No. 26-5975 which (i) called and gave notice of the submission to La Puente voters Attachment B
ORDINANCE NO. 26-995 PAGE 2 OF 12 JULY 14, 2026
of a ballot measure to an increase to the City’s 1% transactions and use tax to 1.25; (ii) made a unanimous finding of a fiscal “emergency” within the meaning of Section 2(b) of Article XIIIC(ii) of the California Constitution; (iii) acknowledged the concurrent first-reading approval of this Ordinance by the City Council; (iv) ordered that the ballot measure be submitted as part of the City’s June 2, 2026 special municipal election, which is to be consolidated with the County-administered elections of the same date; (v) requested the County to provide administrative services and support for its special municipal election, inclusive of the ballot measure; and (vi) setting priorities for the submission of arguments and rebuttals and ordering the preparation of the City Attorney’s Impartial Analysis; and WHEREAS, the ballot measure seeking approval of this Ordinance was given the letter designation Measure “LP” which presented the following question to La Puente voters:
WHEREAS, this Ordinance was provisionally approved by the City Council for first reading and second reading on February 24, 2026, and July 14, 2026, respectively, subject to the requirement that the ballot measure authorizing the implementation of this Ordinance is in fact approved by La Puente voters at a special municipal election held June 2, 2026; and WHEREAS, as required by Government Code Sections 53723 and 53724(b), Revenue and Taxation Code Section 7285.9, and Section 2(b) of Article XIIIC of the California Constitution, the ballot measure seeking approval of this Ordinance was approved by a simple majority of votes cast at the City’s special municipal election of June 2, 2026, by a final count of 3,326 “Yes” votes (or 61.37%% “Yes”) to 2,094 “No” votes (or 38.63% “No”); and WHEREAS, at its meeting of July 14, 2026, the City Council approved Resolution No. 26-6010 reciting the fact of the City’s June 2, 2026, Special Election, and declaring the results of the same.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA PUENTE, ACTING WITH THE CONSENT OF THE VOTERS FOLLOWING A JUNE 2, 2026 SPECIAL MUNICIPAL ELECTION, HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The Recitals set forth above are true and correct and incorporated into this Ordinance.
SECTION 2. Chapter 2.34 (Public Safety, Vital Services and Neighborhood Protection Measure) of Title 2 (Administration) of the La Puente Municipal Code is hereby amended and retitled in its entirety to now state the following:
Keep La Puente Sales Tax Revenues Local Measure
To protect La Puente’s funding for public safety; street/ sidewalk maintenance/ repair; park maintenance/ enhancements; youth/ senior programs and any other governmental purposes and prevent the County of Los Angeles and other taxing agencies from seizing additional sales tax revenues generated in La Puente for themselves, shall La Puente’s 1/2% transactions (sales) and use tax be increased to 1% raising $3.6 million annually, subject to the ability to suspend application of the increased rate?
YES
NO
ORDINANCE NO. 26-995 PAGE 3 OF 12 JULY 14, 2026
Chapter 2.34
LA PUENTE TRANSACTIONS AND USE TAX
2.34.010 Title.
2.34.020 Operative date.
2.34.030 Purpose.
2.34.040 Contract with state.
2.34.050 Transactions tax rate.
2.34.060 Place of sale.
2.34.070 Use tax rate.
2.34.080 Adoption of provisions of state law.
2.34.090 Limitations on adoption of state law and collection of use taxes.
2.34.100. Permit not required.
2.34.110 Exemptions and exclusions.
2.34.120 Amendments to Revenue & Taxation Code.
2.34.130 Enjoining collection forbidden.
2.34.040 Annual Audit.
2.34.150 Automatic Suspension, Implementation.
2.34.160 Suspension or Reduction.
2.34.170 City Council Authority to Amend.
2.34.180 Severability.
-------------------------------------
2.34.010 Title.
This chapter shall be known as the La Puente Transactions and Use Tax Chapter (hereinafter “Chapter”). The City of La Puente shall hereinafter shall be called "City." This chapter shall be applicable in the incorporated territory of the City.
2.34.020 Operative Date.
A. The transactions and use tax codified under this ordinance was first approved by La Puente voters at a municipal election held November 6, 2018, and pursuant to Revenue and Taxation Code Section 7265 became operative on the first day of the calendar quarter commencing 110 days after its adoption, April 1, 2019 at an original rate of half a percent (1/2%).
B. On June 2, 2026, La Puente voters approved a City-initiated ballot measure to increase the transactions and use tax rate to one percent (1%). For purposes of this ordinance the term “operative date” shall mean October 1, 2026, the date upon which the increased one percent (1%) transactions and use tax rate shall take effect.
2.34.030 Purpose.
This Chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
ORDINANCE NO. 26-995 PAGE 4 OF 12 JULY 14, 2026
(a) To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
(b) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
(d) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
2.34.040 Contract with state.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
2.34.050 Transactions tax rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
2.34.060 Place of Sale.
For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery ORDINANCE NO. 26-995 PAGE 5 OF 12 JULY 14, 2026
charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
Section 2.34.070 Use tax rate.
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
Section 2.34.080 Adoption of provisions of state law.
Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
Section 2.34.090 Limitations on adoption of state law and collection of use taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
(a) Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this ordinance;
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or
ORDINANCE NO. 26-995 PAGE 6 OF 12 JULY 14, 2026
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
A. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this ordinance, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 2.34.100. Permit not required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.
Section 2.34.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. (b) There are exemptions from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City, which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
(A) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of ORDINANCE NO. 26-995 PAGE 7 OF 12 JULY 14, 2026
Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and (B) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property, which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (b)(3) and (b)(4) of this section, above, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. (c) There are exemptions from the use tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
ORDINANCE NO. 26-995 PAGE 8 OF 12 JULY 14, 2026
5. For the purposes of subparagraphs (c)(3) and (c)(4) of this section, above, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (c)(7), below, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
(d) Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
Section 2.34.120 Amendments to revenue and taxation code.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
Section 2.34.130 Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part
1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
ORDINANCE NO. 26-995 PAGE 9 OF 12 JULY 14, 2026
Section 2.34.140 Annual Audit.
By no later than December 31st of each year, the City shall cause an independent auditor to complete an audit of the tax revenues collected under this Chapter. Such report shall review whether the tax revenues collected pursuant to this Chapter are collected, managed and expended in accordance with the requirements of this Chapter.
2.34.160 Automatic Suspension, Implementation.
The taxes authorized by this Chapter are subject to the following:
(a) For purposes of this section, the term “district” has the meaning set forth in section 7252 of the State Revenue and Taxation Code to the extent such a district may have taxing powers within the City’s jurisdiction under applicable law. For example, and without limitation, the County of Los Angeles is a district for purposes of this section.
(b) The voter-approved transactions use tax rate of one percent (1%) authorized under this Chapter was previously set at a voter-approved rate of half of a percent (1/2%). For purposes of this section, the following terms shall have the following meaning:
1. “Base Tax Rate” means the prior voter-approved half percent (1/2%) tax rate that preceded the Maximum Tax Rate.
2. “Intermediate Tax Rate” means a transactions and use tax rate of threequarters of a percent (3/4%).
3. “Maximum Tax Rate” means the voter-approved maximum transactions and use tax rate of one percent (1%) approved by La Puente voters at a Special Election held June 2, 2026.
4. “2026 County Sales Tax Measure” means that certain transactions and use tax measure placed on the June 2, 2026, ballot by Los Angeles County Board of Supervisors action taken on February 10, 2026, under Board of Supervisors Agenda Item No. 15 and commonly referred to as the “Essential Services Restoration Act for Los Angeles Couty General Sales Tax Measure”. (c) The City may suspend collection of the City’s transactions and use tax at the Maximum Tax Rate and continue to collect said tax at the Base Tax Rate if (i) the 2026 County Sales Tax Measure is not approved by the voters at an election held June 2, 2026; or (ii) California State Assembly Bill 1768 (Bryan) (“AB 1768”) introduced during the 2025-2026 legislative session is signed into law and so long the exemption from the limitations of Revenue and Taxation Code section 7251.1 afforded therein to the County of Los Angeles remain in effect. If the exemption granted to the County of Los Angeles under AB 1768 is repealed or allowed to expire, but the transactions and use tax established by the 2026 County Sales Tax Measure remains in effect, then the City shall commence collection of the City’s voter-approved tax at the Maximum Tax Rate immediately or as soon thereafter ORDINANCE NO. 26-995 PAGE 10 OF 12 JULY 14, 2026
as the California Department of Tax and Fee Administration is able to commence collection at the Maximum Tax Rate.
(d) The City may also suspend or partially suspend collection of the City’s transactions and use tax at the Maximum Tax Rate unless and until the County of Los Angeles or any other district with authority to levy transactions and use taxes within the City of La Puente places a transactions and use tax measure on the ballot (either on its own initiative or in response to a initiative petition) that, if approved by the voters, would completely exhaust, or otherwise reduce, the thenallowable amount by which said tax rate may increase the cumulative transactions and use tax rate allowable under Revenue and Taxation Code section 7251.1.
(e) Should the County of Los Angles or any other district place a transaction and use tax on the ballot as contemplated by subsection (d) of this section, then the City will commence the process for collection of the tax at the Maximum Tax Rate or the Intermediate Tax Rate, if so desired, on the first day on the month that the election on the tax will take place or as soon thereafter as the California Department of Tax and Fee Administration is able to commence such collection on the City’s behalf.
(f) Nothing in this section is intended to, nor will it, limit the number of times the City may suspend collection of the tax above the Base Tax Rate. Setting or otherwise maintaining the tax rate at the Base Tax Rate or at the Intermediate Tax Rate for any interim period of time shall not prevent the City Council from later increasing the tax rate to the Maximum Rate in the manner provided under Section 2.34.170.
2.34.170 Suspension or Reduction.
Nothing in this Chapter requires the City Council to collect the transactions and use tax above the Base Tax Rate. The City Council may suspend collection of the tax at the Maximum Tax Rate and consistent with such authority may also set the tax rate at the Intermediate Tax Rate on an interim basis. Any increase or decrease in the tax rate shall be accomplished by approval of a resolution after a public meeting at which public testimony may be taken. No such increase or decrease in the tax rate shall require a further voter of the people, provided that no such increase or decrease exceeds the Maximum Tax Rate.
2.34.180 Council Authority to Amend.
Except for amendments that would increase the rate of the City’s transactions and use tax beyond the Maximum Tax Rate as defined under Section 2.34.160, above, the City Council may exercise all applicable powers set forth in the state Government Code including, without limitation, amending this Chapter by ordinance by no less than simple majority vote of the full membership of the City Council. The City Council may also adopt by ordinance or resolution such additional regulations that may be necessary to implement the purposes of this Chapter.
ORDINANCE NO. 26-995 PAGE 11 OF 12 JULY 14, 2026
Section 2.34.180 Severability.
If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the remainder of the Chapter and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 9. Effective Date.
A. This Ordinance relates to an increase to the City’s transactions (sales) and use tax rate from rate of half of a percent (1/2%) to one percent (1%), subject to interim adjustments in the manner contemplated under Sections 2.34.160 and 2.34.170 of the La Puente Municipal Code as established by this Ordinance. The foregoing notwithstanding, this Ordinance may only become operative if approved by a simple majority of votes cast by La Puente voters at a June 2, 2026, special election. If approved by the voters, the transaction and use tax rate set forth under Chapter 2.34 of the La Puente Municipal Code may be increased to a maximum tax rate of one percent (1%). If the measure fails, this Ordinance shall be rendered inoperative and void, however, the defeat of the measure shall not operate to extinguish or amend the existing transaction and use tax as presently constituted and last approved by La Puente voters on November 6, 2018.
B. The increased tax rate established under this Ordinance may not go into effect until October 1, 2026. Upon October 1, 2026, the current text of Chapter 2.34 of the La Puente Municipal Code shall be amended and updated in its entirety as referenced in Section 2 of this Ordinance. By passage of the measure and approval of this Ordinance, the City may make, without additional voter approval, clerical, formatting or numbering corrections to the aforementioned text to ensure conformity with the requirements of the California Department of Tax and Fee Administration and to ensure internal consistency within the La Puente Municipal Code, provided that no such corrections may result in an increase to the transactions and use tax rate above the voter-authorized and voter-approved maximum tax rate of one percent (1%).
SECTION 10. CEQA. This Ordinance is exempt from review under the California Environmental Quality Act (Cal. Pub. Resources Code, § 2100 et seq.) (“CEQA”) and the CEQA Guidelines (14 Cal. Code of Regs., § 15000 et seq.) because it establishes rules and procedures to implement government funding mechanisms; does not involve any commitment to a specific project that could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this Ordinance does not constitute a “project” that requires environmental review (14 Cal. Code of Regs., § 15378(b)(4)-(5)).
SECTION 11. Duration Unchanged. The transactions and use tax increased under this Ordinance shall continue to be of an indefinite term unless and until repealed by La Puente voters.
SECTION 12. Certification Of Adoption. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be published pursuant to California Government Code Section 36933, following approval by La Puente voters at the City’s special election held of June 2, 2026.
PASSED, APPROVED, AND ADOPTED this 14th day of July, 2026 by the following vote:
ORDINANCE NO. 26-995 PAGE 12 OF 12 JULY 14, 2026
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
Charlie Klinakis, Mayor
ATTEST:
_____________________________________
Martha Torres, MPA, CMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF LA PUENTE )
I, Martha Torres, City Clerk of the City of La Puente, do hereby certify that the above and foregoing Ordinance No. 26-995 was passed, approved, and adopted by the City Council of the City of La Puente, signed by the Mayor and attested by the City Clerk at a meeting of said City Council of the City of La Puente held on this 14th day of July 2026, and that said Ordinance was adopted by the following votes to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
_______________________________
Martha Torres, MPA, CMC
City Clerk, City of La Puente
RESOLUTION NO. 26-6011 PAGE 1 OF 2 JULY 14, 2026
RESOLUTION NO. 26-6011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA PUENTE, CALIFORNIA, AUTHORIZING THE CITY
MANAGER TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION FOR IMPLEMENTATION OF A
LOCAL TRANSACTION AND USE TAX
WHEREAS, on July 14, 2026, the City Council approved Ordinance No. 26-995 amending the City Municipal Code and providing for a local transaction and use tax; and WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transaction and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transaction and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administrative Agreement” prior to implementation of said taxes; and WHEREAS, the Department requires that the City Council authorize the agreements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LA PUENTE DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by reference.
SECTION 2. The “Preparatory Agreement” attached as Exhibit “A” and the “Administrative Agreement” attached as Exhibit “B,” are hereby approved and the City Manager is hereby authorized to execute each agreement.
SECTION 3. The provisions of this Resolution are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Resolution or their applicability to other persons or circumstances.
SECTION 4. The City Clerk shall attest to the passage of this Resolution and it shall thereupon be in full force and effect and a certified copy of the levy shall be filed in the office of the City Clerk and open for public inspection.
Attachment C
RESOLUTION NO. 26-6011 PAGE 2 OF 2 JULY 14, 2026
PASSED, APPROVED AND ADOPTED this 14th day of July 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Charlie Klinakis, Mayor
ATTEST:
Martha Torres, MPA, CMC, City Clerk
EXHIBIT “A”
PREPARATORY AGREEMENT
(Rev. 07/24) 1
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of La Puente, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance.
City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) Exhibit A
(Rev. 07/24) 2
7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
Bob Lindsey, City Manager
City of La Puente
15900 E. Main Street
La Puente, CA 91744
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF LA PUENTE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Robert Lindsey
Date: _______________________________
City Manager
(Title)
Date: _______________________________
EXHIBIT “B”
ADMINISTRATIVE AGREEMENT
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of La Puente has adopted, and the voters of the City of La Puente (hereafter called “City” or “District”) have approved by the required majority vote, the City of La Puente Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7265, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. , as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
Exhibit B
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. (Rev. 7/24) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion (Rev. 7/24) 4
of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
(Rev. 7/24) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
Bob Lindsey, City Manager
City of La Puente
15900 E. Main Street
La Puente, CA 91744
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on ______________. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. (Rev. 7/24) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing (Rev. 7/24) 7
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF LA PUENTE CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Robert Lindsey
(Typed Name) Date: _______________________________
City Manager
(Title)
(Date)
RESOLUTION NO. 26-6012 PAGE 1 OF 2 JULY 14, 2026
RESOLUTION NO. 26-6012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
PUENTE, CALIFORNIA, AUTHORIZING EXAMINATION OF
SALES, USE AND TRANSACTIONS TAX RECORDS
WHEREAS, pursuant to Ordinance No. 26-995 of the City of La Puente (“District”), and Revenue and Taxation Code section 7270, the District 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 transactions and use taxes; and WHEREAS, the City Council of the City of La Puente deems it desirable and necessary for authorized officers, employees and representatives of the District to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the District 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, THE CITY COUNCIL OF THE CITY OF LA PUENTE HEREBY FINDS, DETERMINES AND RESOLVES AS FOLLOWS:
SECTION 1. The City Manager, or other officer or employee of the District designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City of La Puente with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department pursuant to the contract between the District and the Department.
SECTION 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the District:
(a) City of La Puente Administration
(b) Revenue Management budgeting
(c) Community and economic development
(d) Business license tax administration
The information obtained by examination of Department records shall be used only for those governmental functions of the District listed above.
SECTION 3. That Hinderliter, de Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department. The person or entity designated by this section Attachment D
RESOLUTION NO. 26-6012 PAGE 2 OF 2 JULY 14, 2026
meets all of the following conditions, which are also included in the contract between the Distrct and Hinderliter, de Llamas & Associates:
(a) has an existing contract with the District to examine those sales or transactions and use tax records;
(b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this Resolution to examine the information; (c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract; and
(d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to the contract between the District and the Department and for those purposes relating to the governmental functions of the District listed in Section 2 of this Resolution.
SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
______________________________
Charlie Klinakis, Mayor
ATTEST:
_____________________________________
Martha Torres, MPA, CMC, City Clerk