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HomeMy WebLinkAboutReso 66-20 Authorizing Examination Of Sales And Use Tax RecordsReso No. 66-20, Item 4.19, Adopted 06/16/20 Page 1 RESOLUTION NO. 66 - 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS WHEREAS, pursuant to Ordinance No. 8-82, the City of Dublin (“City”) entered into a contract with the State Board of Equalization (“SBOE”) to perform all functions relating to the administration and collection of local sales and use taxes; and WHEREAS, in 1982, the City Council adopted Resolution 27-82, which authorized the City Manager and designated employees with the authorization to examine confidential sales tax records; and WHEREAS, in 1989, the City Council amended Resolution 27-82 by adopting Resolution No. 93-89, which also authorized the firm of Hinderliter de Llamas and Associates (“HdL”) to represent the City of Dublin in matters related to the investigation of SBOE records and reports; and WHEREAS, on August 14, 1989, the City Council entered into an agreement with HdL for the investigation and review of sales and use tax transactions and collections for the City, contained in the records of the State Board of Equalization; and WHEREAS, in 1997, the City Council adopted Resolution No. 144-97 reestablishing the authorization of designated representatives, including HdL, to examine on behalf of the City confidential sales and use tax records of the State Board of Equalization pertaining to sales and use taxes collected by SBOE for the City pursuant to its contract; and WHEREAS, on June 20, 2017, the City Council adopted Resolution No. 79-17 Amending and Restating Consulting Services Agreement Between the City of Dublin and HdL, which updated the terms of the agreement and extended the duration of services through June 30, 2020; and WHEREAS, on June 2, 2020, the City Council adopted Resolution No. 47-20 approving Amendment #1 to the amended and restated agreement with HdL, which extended the duration of the agreement through June 20, 2022; and WHEREAS, the City Council now desires to again reestablish the authorization of designated representatives, including HdL, to examine on behalf of the City confidential sales and use tax records of the State Board of Equalization pertaining to sales and use taxes collected by SBOE for the City pursuant to its contract; and WHEREAS, the Taxpayer Transparency and Fairness Act was adopted and signed into law in 2017, which established, among other things, the California Department of Tax and Fee Reso No. 66-20, Item 4.19, Adopted 06/16/20 Page 1 Administration (“CDTFA”) and transferred to such agency certain duties, powers, and responsibilities of the SBOE relating to the administration of various taxes and fees; and WHEREAS, pursuant to Government Code Section 15570.24, the contract entered into by the City with the SBOE is deemed to now apply to the CDTFA; and WHEREAS, the City Council deems it desirable and necessary for authorized representatives of the City to examine confidential sales and use tax records of the State Board of Equalization pertaining to sales and use taxes collected by the CDTFA for the City pursuant to its contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of CDTFA records, and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales and use tax records of the Board; and WHEREAS, the format of this resolution shall meet the requirements of the CDTFA and shall consolidate actions taken in previous resolutions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin as follows: Section 1. That the City Manager, or other officer or employee of the City designated in writing by the City Manager to the Department of Tax and Fee Administration (hereafter referred to as Department), is hereby appointed to represent the City of Dublin with authority to examine transactions tax records of the Department pertaining to transactions taxes, including sales and use taxes, collected for the City by the Department pursuant to the contract between the City and the Department. The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions taxes by the Department pursuant to that contract. Section 2. That the City Manager, or other officer or employee of the City designated in writing by the City Manager to the Department, is hereby appointed to represent the City with authority to examine those transactions tax records of the Department, including sales and use tax records, for purposes related to the following governmental functions of the City: (a) City administration (b) Revenue management and budgeting (c) Community and economic development (d) Business license tax administration 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 & Associates is hereby designated to examine the transactions tax records of the Department pertaining to transactions taxes, including sales and use taxes, collected for the City by the Department. The person or entity designated by this section meets all of the following conditions: Reso No. 66-20, Item 4.19, Adopted 06/16/20 Page 1 (a) has an existing contract with the City to examine those transactions tax records; (b) is required by that contract to disclose information contained in, or derived from, those transactions tax records only to the officer or employee authorized under Sections 1 or 2 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; and (d) is prohibited by that contract from retaining the information contained in, or derived from those transactions tax records, after that contract has expired. The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions taxes by the Department pursuant to the contract between the City and the Department and for purposes relating to the governmental functions of the City listed in section 2 of this resolution. Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Resolution is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional. Section 5. Supersession and Repeal. Any and all other resolutions and parts thereof in conflict with the provisions of this Resolution are superseded and repealed, effective on the effective date of this Resolution. Section 6. Effective Date. This resolution shall become effective immediately upon its passage and adoption. PASSED, APPROVED, AND ADOPTED this 16th day of June 2020, by the following vote: AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: ______________________________ City Clerk