CITY OF CARMEL-BY-THE-SEA Council Report November 5, 2013 To: From: Submitted by: Subject: Honorable Mayor and Members

of the City Council Jason Stilwell, City Administrator Susan Paul, Administrative Services Director Consideration of a Resolution Authorizing the Examination of Sales or Transactions and Use Tax Records by Individuals or Positions Named in Resolution.

Recommendation(s): It is recommended that the City Council adopt the Resolution . Executive Summary: California Revenue and Taxation Code section 7056 restricts the release of confidential transaction and use tax records to officers or employees of local jurisdictions who are designated by a resolution of the legislative body of the jurisdiction, or by a letter of designation, if such authority to designate has been granted by resolution . This Resolution provides that authority. This data is used as an aid in collecting sales and use tax. Analysis/Discussion: Measure D was passed by the voters in 2012. With the passage of the measure, the residents of the City of Carmel-by-the-Sea approved an additional 1% sales tax to be collected along with the standard BradleyBurns sales tax amount. The transaction data related to this tax is very important to our analysis of tax compliance and economic trends. The California State Board of Equalization requires that we pass a resolution specifically naming those that are authorized to receive this transaction data in order to assist us in our analysis. Those that are to be authorized are the City Administrator, whomever the City Administrator authorizes, and Hinderliter, de lamas and Associates {HdL). The latter are our sales tax consultants. Fiscallmpact: Budgeted (yes/no) Not applicable Previous Council Action/Decision History: N/A
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None. Funding Source( general fund, grant, state) Not applicable

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Attachment:
Resolution

Reviewed by:

City Administrator Asst. City Admin. Public Safety Dir City Engineer

1Y
D D D

City Attorney Dir of CPB Library Dir

D D D

Administrative Services Dir of Public Svcs Other

G_..

D D

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CITY OF CARMEL-BY-THE-SEA CITY COUNCIL RESOLUTION NO. _ _ __

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance No. 2012-8 the City of Cannel-by-the-Sea entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local sales and use taxes; and WHEREAS, pursuant to Resolution 2012-82 the City of Carmel-by-the-Sea entered into a contract with the State Board of Equalization to perfmm all functions incident to the administration and collection oflocal transactions and use taxes; and WHEREAS, the City Council of the City of Cannel-by-the-Sea deems it necessary for authorized representative of the City to examine confidential sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected by the Board for the City; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board records and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from sales or transactions and use tax records of the Board; and WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any person designated by the City shall have an existing contract to examine the City's sales and transactions and use tax records. NOW, THEREFORE BE IT RESOLVED AND ORDERED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES AS FOLLOWS:
Section 1. That the Administrative Services Director or other officer or employee of the City designated in writing by the City Administrator to the State Board of Equalization (hereafter referred to as Board) is hereby appointed to represent the City with authority to examine all of the sales or transactions and use tax records of the Board pertaining to sales or transactions and use taxes collected for the City by the Board of Equalization pursuant to the contract between the City and the Board under the Bradley-Bums Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. The information obtained by examination of Board records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Board pursuant to the contract. Section 2. That Hinderliter, de Lamas and Associates (HdL) is hereby designated to

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examine the sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected for the City by the Board. The person or entity designated by this section meets all of the following conditions: a) has an existing contract with the City to examine sales and transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those sales and 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 and transactions and use tax records after that contract has expired. BE IT FURTHER RESOLVED that the information obtained by examination of Board records shall be used only for purposes related to the co11ection of City's sales and transactions and use taxes by the Board pursuant to the contracts between the City and the Board of Equalization. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 5th day of November 2013 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCILMEMBERS: SIGNED,

Jason Burnett, MAYOR ATTEST:

Daryl A. Betancur, CMC Deputy City Clerk

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