Report to Mayor and City Council
Tuesday, December 15, 2020
Consent
SUBJECT:
Title
CONSIDER ADOPTION OF A RESOLUTION NO. 20-186 AUTHORIZING EXECUTION OF AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION TO ADMINISTER AND COLLECT THE LOCAL TRANSACTIONS AND USE TAX (MEASURE K); AND ADOPTION OF A RESOLUTION NO. 20-187 AUTHORIZING EXAMINATION OF TRANSACTIONS AND USE TAX RECORDS (CITY COUNCIL)
Body
I. SUMMARY
On August 4, 2020, the City Council approved a ballot measure amending the City of Carson code and providing for a local transactions and use tax of three quarter-cent (0.75%). This measure was submitted to the County of Los Angeles and included on the November 3, 2020 ballot designated as Measure K. Measure K was approved by over 53% of the voters. The California Department of Tax and Fee administration (CDTFA) will administer and perform the services necessary to set up the transactions and use tax. In order to begin this process, the CDTFA requires approval of the attached resolution authorizing the City Manager to execute an "Administrative Agreement" and "Preparatory Agreement." Executed copies of the proposed resolutions and agreements will be provided to the CDTFA, and they will begin the process to implement the tax effective April 1, 2021.
Additionally, a Resolution authorizing designated City Staff access to the data is required. Staff is currently undergoing review of RFP proposals and anticipates selecting a consultant to perform Sales Tax Audit early next year. Once a consultant is selected and contracted, staff will bring back an updated resolution for the City Council approval authorizing CDTFA to provide access to the City's Sales Tax Auditor. This resolution for access to sales and use tax data allows the City Manager to designate in writing to the CDTFA what City staff members can view the data. The new transactions and use tax (Measure K) is considered a separate data source by the CDTFA and requires its own resolut...
Click here for full text