City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00163 1/13/2026
Administrative Subpoena to GTE Mobilnet of California Limited Partnership, dba Sacramento Valley Limited Partnership, for Business Records Related to the City’s Communications Users Tax Compliance Audit
File ID: 2026-00163
Location: Citywide
Recommendation: Pass a Resolution authorizing the City Attorney to issue a subpoena to GTE Mobilnet of California Limited Partnership, dba Sacramento Valley Limited Partnership, requiring the production of records necessary to audit the business’s compliance with the City’s Utility User Tax ordinance.
Contact: Bryan Howard, Interim Finance Manager, (916) 808-4847, [email protected]; Ranelle Kawasaki, Program Specialist, (916) 808-1251, [email protected]; Finance Department, Revenue Division Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: A comprehensive tax compliance audit of GTE Mobilnet of CA Limited Partnership, dba Sacramento Valley Limited Partnership (GTE Mobilnet), a telecommunications provider, has been commissioned to determine whether GTE Mobilnet is compliant with, and has accurately paid, the City’s Utility User Tax (UUT) as required in Sacramento City Code Chapter 3.32. The audit will identify any reporting and payment errors or deficiencies and will provide any necessary solutions to ensure the UUT is properly reported and paid in the future. To conduct a comprehensive and thorough audit, it is necessary that GTE Mobilnet furnish specific business documents and records.
GTE Mobilnet has informed the City that they require receipt of an administrative subpoena ordering the production of such records for to them to turn over the business records necessary to complete the tax compliance audit.
File ID: 2026-00163 1/13/2026
Policy Considerations: The collection and recovery of tax revenues due to the City is consistent with the City Council’s policy of collecting monies due to the City in order to provide essential City services.
Economic Impacts: None.
Environmental Considerations: This action is not subject to the California Environmental Quality Act (CEQA) because it does not constitute a “project” as defined in section 15378 of the CEQA Guidelines and is otherwise exempt pursuant to section 15061(b)(3) of CEQA Guidelines (no significant effect on the environment).
Sustainability: There is no sustainability consideration associated with this report.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The compliance audit will evaluate GTE Mobilnet’s application and collection of the City’s UUT by evaluating their taxing matrix, charges subject to UUT, plans and bundled services subject to UUT, tax exemptions, audit tests and reconciliations, and utilization of any other tax audit practice typical and necessary to determine compliance with the City’s UUT. The UUT compliance audit will ascertain that the taxes remitted to the City were correctly calculated and collected on a sound and consistent basis compliant with the City’s UUT ordinance.
Geocode sampling will also be performed to verify the accuracy of the accounts coded within GTE Mobilnet’s taxing systems by determining that customer accounts are within the City boundaries and assessed the City’s UUT. Tests on customer addresses in potentially vulnerable areas of the City, such as annexed areas, overlapping zip codes with surrounding jurisdictions, adjacent city boundary areas, etc., will be performed to verify GTE Mobilnet’s use of correct jurisdictional designations for customers within the City and in the immediate surrounding areas.
The UUT compliance audit and testing can only be conducted if GTE Mobilnet provides the City with the required business records and customer account information. GTE Mobilnet has indicated that they will not release customer personal identifying information without an administrative subpoena.
Financial Considerations: The City will not incur any out-of-pocket costs associated with the audit.
The City’s contracted audit consultant, Neumo, fka Avenu Insights and Analystics, will receive a 20% contingency fee on any new revenue realized as a result of this audit.
Local Business Enterprise (LBE): None.
RESOLUTION NO.
Adopted by the Sacramento City Council
January 13, 2025
RESOLUTION AUTHORIZING THE CITY ATTORNEY TO
ISSUE A SUBPOENA TO GTE MOBILNET OF CA LIMITED
PARTNERSHIP, DBA SACRAMENTO VALLEY LIMITED
PARTNERSHIP, REQUIRING THE PRODUCTION OF
RECORDS NECESSARY FOR A CITY COMMUNICATIONS
USER TAX COMPLIANCE AUDIT
BACKGROUND
A. The Sacramento City Code (“SCC”) imposes a Utility User Tax (“UUT”) on users of certain communication services, including telecommunications services.
B. The SCC requires Communication Service Suppliers to collect the Communications User Tax and remit the collected tax to the City of Sacramento (“City”). GTE Mobilnet of CA Limited Partnership, dba Sacramento Valley Limited Partnership (“GTE Mobilnet”), is a Communication Service Supplier.
C. As a Communication Service Supplier, GTE Mobilnet is required under the SCC to keep and preserve, for a period of three years, all records necessary to determine the amount of UUT they were required to collect and remit to the City and to ensure their application of their application of the City’s UUT is correct.
D. The City, through the Revenue Division of the Department of Finance and its designated agents, desires to perform a UUT compliance audit of records maintained by GTE Mobilnet.
E. California Government Code, section 37104, empowers the City Council to authorize the issuance of a subpoena requiring the attendance of witnesses or production of documents in connection with a City UUT compliance audit.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Council authorizes the City Attorney, or designee, to issue a subpoena to GTE MOBILNET OF CALIFORNIA LIMITED
PARTNERSHIP requiring the production of witnesses or records necessary for the City to perform a UUT compliance audit.