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CITY COUNCIL STAFF REPORT
DATE: March 7, 2012 CONSENT CALENDAR
SUBJECT: AUTHORIZE THE RELEASE AND EXAMINATION OF SALES OR
TRANSACTIONS AND USE RECORDS BY THE BOARD OF
EQUALIZATION TO CITY SALES TAX AUDITORS
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
The City of Palm Springs has had an agreement with MuniServices, LLC since July
2006 for sales and use tax auditing services. This agreement allows MuniServices to
represent the City for purposes of examining Board of Equalization (BOE) records
pertaining to sales and use tax records to identify errors and omissions.
After the passage of Measure J, the City entered into an agreement with the BOE to
administer and collect the additional local sales and use taxes Measure J will provide.
This action extends MuniServices' permission to obtain and examine the sales and use
tax data to include the amounts collected under Measure J beginning April 1, 2012. The
BOE requires this permission be granted through a resolution formally adopted by the
City Council.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
RELEASE AND EXAMINATION OF SALES OR TRANSACTIONS AND USE
TAX RECORDS".
FISCAL IMPACT:
None. There are no additional costs for these services.
ITEM NO.
City Council Staff Report
March 7, 2012 -- Page 2
Authorize Release and Examination of Sales Tax Records
Geoff ey S. Kiehl David H. Ready, eager
Director of Finance and Treasurer
DouglaW Holland, City Attorney
Attachments:
Resolution
02
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING THE
RELEASE AND EXAMINATION OF SALES OR
TRANSACTIONS AND USE TAX RECORDS.
WHEREAS, the City of Palm Springs has 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, the City Council of the City of Palm Springs deems it necessary for
an 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 THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SECTION 1. That the Director of Finance and Treasurer or other officer or
employee of the City designated in writing by the City Manager 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-Burns 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 the Director of Finance and Treasurer or other officer or
employee of the City designated in writing by the City Manager to the Board is hereby
appointed to represent the City with authority to examine those sales and transactions
and use tax records of the Board for the purposes related to the following governmental
functions of the City: Specific Governmental Functions.
SECTION 3. That MuniServices, LLC, is hereby designated to 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:
03
Resolution No. _
Page 2
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 or Section 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;
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.
SECTION 4. That the information obtained by examination of Board records
shall be used only for purposes related to the collection of City's sales and transactions
and use taxes by the Board pursuant to the contract between the City and the Board of
Equalization.
SECTION 5. That the City Manager is hereby authorized to take such and
further actions, and sign such other and future documents, as is necessary and proper
to implement this Resolution on behalf of the City.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 7TH DAY OF MARCH, 2012.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
04
Resolution No.
Page 3
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California