Item No.
AGENDA REPORT
DATE: June 23, 2025
TO: Honorable Mayor and City Council
FROM: Phil White, Director of Financ
SUBJECT: Sales and Use Tax Records Examination Resolution 7 RECOMMENDATION:
That the City Council adopt Resolution No. 2025-37, a Resolution of the City Council of the City of Yucaipa, California, authorizing examination of sales or transactions and use tax records.
BACKGROUND/DISCUSSION:
The California Department of Tax and Fee Administration (CDTFA) administers the 1 % Measure S sales tax for the City of Yucaipa. In order to examine sales and use tax records, the City Council must authorize the sales tax consultant (HdL) to examine the records pertaining to the sales and use tax. HdL has been contracted by the City to perform sales and use tax analysis of Measure S receipts.
Staff is recommending the adoption of Resolution No. 2025-37 to authorize HdL access.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Attachments:
1. Resolution No: 2025-37
Approved by:
ATTACHMENT 1
RESOLUTION NO. 2025-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA,
CALIFORNIA, AUTHORIZING EXAMINATION OF SALES OR
TRANSACTIONS AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance Number 11, the City of Yucaipa (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, pursuant to Ordinance Number 453, Revenue and Taxation Code Section 7270, the 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 transactions and use taxes; and
WHEREAS, the City Council of the City of Yucaipa 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 and use tax records of the Department.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA HEREBY RESOLVES AS FOLLOWS:
Section 1.
The City Manager, Finance Director, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales and use tax records of the Department pertaining to sales or transactions 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 or transactions and use taxes by the Department pursuant to that contract, and for purposes related to Budget Planning. The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
Section 3. That HINDERLITER DE LLAMAS AND ASSOCIATES DBA HDL COMPANIES (Consultant) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions 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 the Consultant:
Section 4.
Section 5.
a) has an existing contract with the City 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;
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 The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions 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.
This resolution supersedes all prior resolutions of the City Council of the City of Yucaipa adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
PASSED, APPROVED, and ADOPTED this 23rd day of June, 2025.
Jon Thorp, Mayor
ATTEST:
Ana V. Sauseda, MMC
Director of General Services/City Clerk