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Home My WebLink AboutAgenda Statement 1974/08/20 Item 05 A,GENDA . ITEM NO. [5 ] CHULA VISTA CITY COUNCIL MEETING OF: August 20, 1974 ITEM TITLE: Resolution -Authorizing Examination of Sales and Use Tax Records INITIATED BY: Director of Finance BACKGROUND The State Board of Equalization has formulated a new procedure by which a City, upon request, may receive by mail copies of the Board's computer print-outs of amounts of taxpayers - reported local sales and use taxes attributed to their local jurisdiction. This information would be valuable for revenue estimating, budget planning and in verifying the revenues being distributed to the local jurisdiction from individual taxpayer's accounts. It is necessary to establish by resolution the title of the officer or employee to whom the mailing should be made. ATTACHED: Resolution ~] Ordinance [ ] Agreement [ ] Plat [ ] See EXHIBITS [Xl No. I, 2 Financial Statement: N/A Commission-Board Recommendation: Q!partment Head Recommendati on: Recorrmend Approval City Manager Recommendation: Concur f! ?fa.cj . . . . . - 1.1 U ~ '. EXH!BIT 1 .. /' IE Of Clo.lIFORloflA ATE BOARD OF eaUAlIZA TlON crOReif t. tp Ilt Y 'Int OI'lrlcl. Son ',on,l"o o N STREET. SACRAMENTO. CAlIfORN'A >. BOX \799, SACRAMENTO, CAlifORNIA 95801) f JOHN W. lYNCH $t(ond Oillri'f, '",no WILliAM M. 8l~mm thl," Di",I,I. Son R%.l August 7. 1974 ~ICH~RO NfVINS fov,'h Oltlr;cl, POlodtllO HOUSTON I. flOURNOY Conlloll... Sacrom.nlo City of Chu1a Vista Gordon K. Grant Director of Finance P. O. Box 1087 Chula Vista, California 92010 W, W. CUNLO' . hKlIliv. SKI.lary . Dear Sir: Re: Availability of "Bradley-Burns" Local Sales' and Use Tax Information for Local' Review The State Board of Equalization, in cooperation with the League of California Cities and the County Supervisors Association of California, has worked out a new procedure by which a city or a county upon request may receive by mail copies of the Board's computer print-outs of amounts of taxpayer-reported local sales and use taxes attributable .to the local jurisdiction. Some local orficials have indicated that this type of information would be val~able to them for, revenue estimating, budget planning and in verifying the revenues being distributed .to the local juris- diction from individual taxpayer accounts. . . . , Your city may receive a quarterly mailing of copies of our com- puter print-outs of local sales and use taxes reported by tax- payers in your jurisdiction who are identified by account numbers only. The lists would be available for mailing' about 90 days after the close of each calendar quarter. The mailing would include copies of the print-outs for each month of the past quarter. The Sales and Use Tax Law provides that such information shall be used only for purposes related to the collection of local sales and use taxes under your contract with our Board. While useful for budget planning and revenue verification, the data supplied will not be sufficient to enable,a reconciliation with the amounts you .receive from the' Board 8S .periodic transmittals of your Bradley-Burns revenues. Adjustments from pooling, delinquency collections and refunds are not included. If a more detailed examination of our sales and use tax records is found necessary, it will still have to be done in Sacramento where all records are available. If you find that quarterly mailings of copies of the computer print-outs would be valuable to you, you, may request them by a letter addressed to Local Tax Unit, State Bonrd of Equnlization, !. O. Box 1799, Sacramento, CarrrDrnia 95808. ~ease'specrry-rn ~ Nil;! ' \ ~ .." -2- '. your letter the title of the officer or employee to whom the mail- ing should be made. In this connection you should review the Resolution by which your city authorized officers or employees to examine sales and use tax information to be sure that the desig- nated officer is included. We may not mail to any officer or employee unless we have a resolution of authorization for such person in our files. If a new resolution is needed, we suggest that the. authorization be to the title of a person rather than to him by name. This avoids the necessity for new resolutions each time a position is filled by a new person. A suggested fannof resolution is enclosed in the event. you find the need to adopt a new authorization. We have. also included the full text of Section 7056 of .the'Revenue and Taxation Code, which relates to the confidentiality and use of sales and use tax information. The second paragraph specifically relates to release of information to a local jurisdiction. . Sincerely, . ( JOHN W. LYNCH . " " .1/ f JWL: j w Enclosure cc: League of California Cities .; ~"""""""",",""W .----.... -j{.1fiiJ! . . . . , - I i ~ j t l t J, SECTION 7056, REVENUE AND TAXATION CODE <. 7056. Excepting the information set forth on permits issued under Article 2 (commencing with Section.6066) of Chapter 2 of this part, it is unlawful for the board of any person having an administrative duty under this part 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 particu- lar 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. However, the 9overnor may, by general or special order, authorize examina- tion by other state officers, by tax officers of another state, by the federal government, if a reciprocal arrangement exists, or by any other person of the records maintained by the board under this part. The information 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. When requested by resolution of the-legislative body of any county, city and county or city, the board shall permit only duly authorized officer or employee of such county, city and county, or city, to examine .a1l of the sales and use tax records of the boar.d pertaining to sales and use taxes collected for the county, city and county or city by the board pursuant to contract entered into between the board and the county, city and county or city under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5, commencing with Se~tion 7200, of Division 2 of the Revenue and Taxation Code). Information obtained by examination of board records as herein permitted shall be used only for pur- poses related to the collection of local sales and use taxes by the board pursuant to the contract. , . When requested by resolution of the legislative body of a district the board shall permit any duly authorized officer or employee of such district to examine the records of the board pertaining to transactions and use taxes collected for the dis- trict by the board pursuant to contract entered into between the board and the district. Information obtained by examination of the board records as herein permitted shall be used only for purposes related to the collection of district transactions and use taxes by the board pursuant to the contract. Successors. receivers, trustees, executors, administrators, assignees, and guarantors, if directly ~nterested, may be given . information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. \ -;: ;!f~~l;J ) . h-xi