HomeMy WebLinkAbout4.06 ExamSales&UseTaxRecords
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AGENDA STATEMENT
. CITY COUNCIL MEETING DATE: (December 2, 1997)
SUBJECT: Adoption of Resolution Authorizing The Examination
of Sales and Use Tax Records
f'j{L(Prepared By: Paul Rankin, Assistant City Manager)
CITY CLERK
File # DBJ[2]QJ-[2]5]
EXHIBITS ATTACHED:
1.
Proposed Resolution
RECOMMENDATION: . n/ Adopt Resolution and direct Staff to forward a certified copy to the
1;~Y State Board of Equalization. :
FINANCIAL STATEMENT: No impact. The resolution will assure that the City can continue to
use an independent contractor to audit sales and use tax reports.
DESCRIPTION: The City was contacted by the State Board of Equalization regarding
a deficiency in the current resolutions on file with that agency. The State Board of Equalization (SBOE)
collects the local share of the sales and use tax pursuant to a contract with the City. Due to the
confidential nature of tax returns filed by retailers, the release of certain information by the SBOE must be
in strict accordance with requirements contained in State laws.
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In 1989, the City of Dublin contracted with Hinderliter de Llamas & Associates (HdL) for Sales Tax
. Audit and Analysis Services. The City Council adopted Resolution number 93-89, which added HdL as
an authorized representative of the City of Dublin. The firm provides City Staffwith economic reports
based upon local retail sales. In addition, the firm reviews sales tax information in order to identify
possible misallocations of revenue to other agencies. HdL purchases the data from the State Board of
Equalization which provides for the ability to include historical comparisons.
The SBOE has indicated to Staff that the form of the resolution did not adequately state that HdL, the City
contractor, had met certain conditions required by section 7056 of the State Revenue and Taxation Code.
Staffhas confirmed that the 1989.agreement does meet these requirements. Therefore, only the form of
the resolution has been amended. Section 3 of the attached resolution details the requirements which a
contractor accessing confidential records of the SBOE must adhere to.
Staff has also modified previous actions by adding section 2 in the attached Resolution. This allows the
City Manager to designate Staff to access this information for the purpose of specified governmental
functions. Section 1 relates to access related to the City Agreement with SBOE for sales tax collection
and SeCtion 2 broadens the use to include the governmental function of City Finances, including revenue
forecasting.
Staff recommends that the City Council adopt the attached Resolution and direct Staff to file it with the
appropriate SBOE official.
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COPIES TO: Lloyd de Llamas, HdL Companies
4."
ITEM NO.
H1cc-forms/agdastmLdoc
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RESOLUTION NO. - 97
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. A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS AND
CONSOLIDATING RESOLUTIONS 27-82 AND 93-89
WHEREAS, pursuant to Ordinance No. 8-82, the City of Dublin 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, 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 the 1982 resolution by adopting Resolution No. 93-89,
which also authorized the firm of Hinderliter de Llamas and Associates to represent the City of Dublin in
matters related to the investigation of SBOE records and reports; and
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WHEREAS, the SBOE has advised the City that the format of previous resolutions excluded language
required by statute for independent contractors to act on behalf of the City; and
WHEREAS, the City Council of the City of Dublin 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 SBOE 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 SBOE 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;
WHEREAS, the format of this resolution shall meet the requirements ofSBOE and will consolidate
actions taken in previous resolutions.
NOW, THEREFORE, BE IT RESOLVED that the City of Dublin does hereby resolve as follows:
Section 1. That the City Manager, or other officer or employee of the City, as designated in writing
. by the City Manager to the State Board of Equalization (hereafter referred to as SBOE), is hereby
appointed to represent the City with authority to examine sales and use tax records of the SBOE
pertaining to sales and use taxes collected for the City by SBOE, pursuant to the contract between the City
and SBOE. The information obtained by examination of Board records shall be used only for the
purposes related to the collection of City sales and use taxes by the SBOE 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 SBOE, is hereby appointed to represent the City with authority to examine those .
sales and use tax records of the SBOE, for the purposes related to the governmental functions of the City
Finances, including but not limited to revenue collections, projections, and analysis.
Section 3. That as authorized in Section 7056 of the California Revenue and Taxation Code, the City
hereby designates the firm of Hinderliter de Llamas and Associates (hereafter HdL) to examine the sales
and use tax records of the Board pertaining to sales and use taxes collected for the City by the SBOE. The
entity designated by this section meets all of the following conditions:
(a) HdL has an existing contract (approved August 14, 1989 and amended by-both parties in
1991), which provides for HdL to examine sales and use tax records;
(b) HdL is required under Section II (B) of the Agreement with the City to disclose
information contained in, or derived from, those sales and use tax records only to the
officer or employee authorized under Section 1 of this resolution to examine the
information.
(c) HdL is prohibited from performing consulting services for a retailer, for the term of the
Agreement under section II(C) of their Agreement with the City.
(d)
HdL is prohibited by section II(D) of the Agreement with the City, from retaining
information contained in, or derived from those sales and use tax records, after the
Agreement has expired.
.
The information obtained by examination of SBOE records shall be used only for purposes related to the
collection of City sales and use taxes by the SBOE pursuant to the contract between the City and the
SBOE and for the purposes relating to the governmental functions of the City listed in section 2 of this
resolution.
PASSED, APPROVED AND ADOPTED this 2nd day of December, 1997.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
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ATTEST:
City Clerk
resosboe.doc