The URL can be used to link to this page

Home My WebLink About2000-06-27 - AGENDA REPORTS - BUSINESS OUTREACH PGM (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approv Item to be presente y?Frank Oviedo CONSENT CALENDAR DATE: June 27, 2000 SUBJECT: CERTIFICATE OF CONFIDENTIALITY BUSINESS OUTREACH PROGRAM DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council adopt Resolution, authorizing Consultant to examine sales and use tax records of the State Board of Equalization, provided to City pursuant to the City contract under the Bradley -Burns Uniform Sales and Use Tax Law. The City's Administrative Services Department is in the process of hiring a specialized use tax consultant to begin a business outreach program that identifies opportunities for the City to receive additional revenue under the existing sales and use tax system. The intent of the program is to ensure that the City of Santa Clarita receives its fair share of use tax as provided by SB 110. The Scope of Services will include identifying opportunities for the City to have use taxes allocated directly back to the City when appropriate. As a procedural matter, in order to provide sales and use tax -consulting services for the City, it is necessary that the City Council authorize the consultant to review the City's sales and use tax information from the California Board of Equalization (BOE). This can be accomplished when a request by resolution of the legislative body is adopted as specified in section 7056(b)(1) of the State of California Revenue and Taxation Code. Tonight's action is intended to allow the consultant to work with the BOE and City staff in identifying sales and use tax opportunities in the City by authorizing access to information that is otherwise considered confidential. ALTERNATIVE ACTIONS City Council not adopt Resolution, authorizing consultant to examine sales and use tax records from the BOE. Other action as determined by the City Council. G Adopted: �` o CERTIFICATE OF CONFIDENTIALITY BUSINESS OUTREACH PROGRAM June 27, 2000 — Page 2 FISCAL IMPACT Funds for consultant are budgeted in the proposed fiscal year 2000-2001 budget in the amount of $6,000. The potential for realized benefits to the City in terms of additional revenues are estimated to be offset by consultant's ability to identify use tax revenue opportunities for the City. ATTACHMENT Sales and Use Taxes Law Section 7056(b)(1) of the State of California Revenue and Taxation Code. Resolution FO:hds councWusetn t.dre 4D USE TAXES Div. 2 d use taxes do not al standards. L. A. lization (App. 2 Dist. 38 Cal.App.3d 549. action 6015, and > State tangible -cords, receipts, rd may require. 2609, § 27; Stats. Stats.1937, c. 778, 679, p. 2183, § 18. and Taxation Code lual sale invoices, question, they were records supporting I deductions, from fy the accuracy of :e Ed. of Equaliza- t Cal.Rptr. 47, 137 nine the books, ersonal proper- :haracter of the 1rn made, or, if le the amount 609, § 27; Stats. Stats.1937, c. 778, i79, p. 2183, § 18. § 6511 at seq. ADMINISTRATION § 7056 Pt. 1 Penalty for making fraudulent return, see Revenue and Taxation Code §§ 7152, 7153. Library References Administrative Law and Procedure X343 to 347. Taxation 4-- 1211. WESTLAW Topic Nos. 15A, 371. C.J.S. Public Administrative Law and Proce- dure § 76 et seq. C.J.S. Taxation § 1232. Notes of Decisions Verification of returns 1 cross-referenced to individual sale invoices, where, during the period in question, they were required to keep adequate records supporting 1. Verification of returns all claimed exemptions and deductions, from which the board could verify the accuracy of Board of equalization was not improperly at- their returns. Paine v. State Bd. of Equaliza- tempting to retroactively impose on taxpayers tion (App. 3 Dist. 1982) 187 Cal.Rptr. 47, 137 requirement that exemption certificates be Cal.App.3d 438. § 7055. Reports In administration of the use tax the board may require the filing of reports by any person or class of persons having in his or their possession or custody information relating to sales of tangible personal property the storage, use, or other consumption of which is subject to the tax. The reports shall be filed when the board requires and shall set forth the names and addresses of purchasers of the tangible personal property, the sales price of the property, the date of sale, and such other information as the board may require. (Added by Stats. 1941, c. 36, p. 556, § 1, eff. July 1, 1943.) Historical and Statutory Notes Derivation: Stats.1935, c. 361, p. 1309, § 25. 683, p. 1943, § 11, amended Stats. 1939, c. 677, Renumbered § 21, and amended Stats.1937, c. p. 2166, § 13. Cross References Imposition of use tax, see Revenue and Taxation Code § 6201 et seq. Penalty for fraudulent return, see Revenue and Taxation Code § 7153. Code of Regulations References Information returns, see 18 Cal. Code of Regs. § 1687. Library References Administrative Law and Procedure &;-342 to 344. Taxation 13:-1211. WESTLAW Topic Nos. 15A, 371. C.J.S. Public Administrative Law and Proce- dure § 76 et seq. C.J.S. Taxation § 1232. § 7056. Disclosure of information; prohibition; exceptions; reciprocal agreements --- (a)(1) Excepting the information set forth on permits issued under Article 2 (commencing with Section 6066) of Chapter 2, the information set forth on certificates of registration issued pursuant to Section 6226, and the terms of any settlement made pursuant to Section 19442 (as amended by Chapter 138 of the Statutes of 1994), it is unlawful for the board, any person having an administrative duty under this part or any person who obtains access to 243 § 7056 SALES AND USE TAXES Div. 2 information contained in, or derived from, sales or transactions and use tax records of the board pursuant to subdivision (b), to make known in any manner whatever the business affairs, operations, or any other information pertaining to any retailer or any other person required to report to the board or pay a tax pursuant to this part, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. (2) It is also unlawful for any person, other than an officer or employee of a county, city and county, city, or district, who obtains access to information contained in, or derived from, sales or transactions and use tax records of the board pursuant to subdivision (b), to retain that information after that person's contract with the county, city and county, city, or district has expired. (3) Notwithstanding paragraphs (1) and (2), the Governor may, by general or special order, authorize examination by other state officers, by tax officers of another state, by the federal government, if a reciprocal arrangement exists, by the tax officials of Mexico, if a reciprocal agreement exists, or by any other person of the records maintained by the board under this part. The informa- tion so obtained pursuant to the order of the Governor shall not be made public except to the extent and in the manner that the order may authorize that it be made public. (b) When requested by resolution of the legislative body of any county, city and county, city, or district, the board shall permit any duly authorized officer or employee of the county, city and county, city, or district, or other person designated by that resolution, to examine all of the sales or transactions and use tax records of the board pertaining to the ascertainment of those sales or transactions and use taxes to be collected for the county, city and county, city, or district by the board pursuant to contract entered into between the board and the county, city and county, city, or district under the Bradley—Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)). Except as otherwise provided herein, this subdivision shall not be construed to allow any officer, employee, or other person authorized or designated by a county, city and county, city, or district to examine any sales or transactions and use tax records of any taxpayer. The costs that are incurred by the board in complying with a request made pursuant to this subdivision shall be deducted by the board from those revenues collected by the board on behalf of the county, city and county, city, or district making the request. (1) The resolution shall certify that any person designated by the resolution, other than an officer or employee, meets all of the following conditions: (A) Has an existing contract with the county, city and county, city, or district to examine those sales 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 an officer or employee of the county, city and county, city, or district who is authorized by the resolution to examine the information. 244 ADMINISTR Pt. 1 (C) Is prol retailer durir (D) Is pro] in, or derive contract has (2) Inform this subdivisi sales or tran: purposes re. county, city, (c) If the sion (b) has resolution of or has been standing sut and use tax the confider (d) Prede, assignees, a the items in of tax requii (e) For p agreement I and taxing Board, anc reciprocal; essential fo of Californ Taxing autl nationals. (Added by 247, p. 1353 § 5, eff. Ju Stats. 1963, Stats. 1969, Stats. 1986, § 8, eff. Jul, 891(A.B.18 This secti, amended for 1941 amend: 1, 1943. For provis effective dai tions of Stal under Rever