CITY OF POMONA
COUNCIL REPORT
September 9, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Andrew Mowbray, Finance Director
SUBJECT: ADOPT RESOLUTIONS AUTHORIZING THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION (CDTFA) TO ADMINISTRATE AND IMPLEMENT A LOCAL TRANSACTION AND USE TAX (TUT)) RECOMMENDATION:
It is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. 2024-130 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX RESOLUTION NO. 2024-129 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AUTHORIZING EXAMINATION OF SALES, USE AND TRANSACTION TAX RECORDS EXECUTIVE SUMMARY:
The attached resolutions are a standard requirement of CDTFA when a City passes a local TUT. The resolutions will (1) allow the City to enter into a preparatory and administrative agreement with CDTFA, (2) authorize the CDTFA to administrate and implement Measure P.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a council member to comply with SB1439.
FISCAL IMPACT:
The CDTFA will continue collecting the 0.75% TUT. The TUT was included in the Fiscal Year 2024-25 Adopted Operating Budget and will be forecasted accordingly in future years.
PREVIOUS RELATED ACTION:
On August 6, 2018, City Council adopted a resolution to submit a 0.75% local TUT measure to the City of Pomona’s qualified electors at the general municipal election held on November 6, 2018 with a 10-year sunset.
On December 3, 2018, City Council adopted a resolution that as a result of the election, a majority of the voters voting on Measure PG relating to the establishment of a 0.75% TUT in the City of Pomona, did vote in favor of it, and that the measure was carried, and shall be deemed adopted and ratified.
On November 6, 2023, City Council adopted a resolution to submit a measure to keep the current local TUT at 0.75% beyond the March 31, 2029 sunset date and until ended by the Pomona voters, to the City of Pomona’s qualified electors at the primary municipal election held on March 5, 2024.
On April 15, 2024, City Council adopted a resolution that as a result of the primary election, a majority of the voters voting on Measure P relating to keeping the current local TUT at 0.75% beyond the March 31, 2029 sunset date and until ended by the Pomona voters, did vote in favor of it, and that the measure was carried, and shall be deemed adopted and ratified.
DISCUSSION:
In November of 2018, the City of Pomona voters passed Measure PG, establishing the 0.75% local TUT with a 10-year sunset. In March of 2024, the City of Pomona voters passed Measure P, keeping the 0.75% TUT and removing the sunset requirement.
As the result of passing Measure P, the City of Pomona is required by the CDTFA to update the Preparatory and Administrative Agreement along with resolutions authorizing processing of and access to Sales and Use Tax records. The City currently contracts with Hinderliter de Llamas and Associates (HdL) to provide Tax Reporting, Monitoring and Analysis Services.
The attached resolutions are a standard requirement of CDTFA when a City passes a local TUT. The resolutions will (1) allow the City to enter into a preparatory and administrative agreement with CDTFA and authorize the CDTFA to administrate and implement Measure P. (2) authorize specified City Officials and Hinderliter, de Llamas & Associates to examine records relating to Sales and Use Tax collected by the CDTFA.
COUNCIL PRIORITIES & GOALS:
This item supports the 2021-2022 City Council Priority 1: Fiscal and Operational Responsibility – Goal C: Obtain additional grant funding and other revenues to help achieve City goals.
Prepared by:
Shar Perez
Revenue Operations Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2024-130
Attachment No. 2 – Resolution No. 2024-129
Update TUT Agreements with CDTFA