Resolution No. 2020-024RESOLUTION NO. 2020-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
AUTHORIZING EXAMINATION OF SALES, USE AND TRANSACTIONS
TAX RECORDS
SECTION 1. Recitals
A. Pursuant to Ordinance No. 1269 of the City of Vernon (City) and Section 7270 of
the Revenue and Taxation Code, the City entered into a contract with the California
Department of Tax and Fee Administration (CDTFA) to perform all functions incident to
the administration and operation of the Transactions and Use Tax Ordinance.
B. The City deems it desirable and necessary for authorized representatives of the
City to examine confidential transactions and use tax records of the California Department
of Tax and Fee Administration pertaining to transactions and use taxes collected by the
Board for the City pursuant to that contract.
C. Section 7056 of the Revenue and Taxation Code sets forth certain requirements
and conditions for the disclosure of California Department of Tax and Fee Administration
records and establishes criminal penalties for the unlawful disclosure of information
contained in or derived from, the transactions and use tax records of the Board.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby appoints the City
Administrator, Finance Director, Assistant Finance Director, Economic Development
Manager, Deputy City Treasurer, Senior Accountant and any other officer or employee
of the City designated in writing by the City Administrator to the California Department
of Tax and Fee Administration (hereafter referred to as the CDTFA) to represent the City
with authority to examine sales, transactions and use tax records of the CDTFA
pertaining to sales, transactions and use taxes collected for the City by the CDTFA
pursuant to the contract between the City and the CDTFA. The information obtained by
examination of CDTFA records shall be used only for purposes related to the collection
of the City's sales, transactions and use taxes by the CDTFA pursuant to the contract.
SECTION 4. The City Council of the City of Vernon hereby appoints the City
Administrator or any other officer or employee of the City designated in writing by the City
Administrator to the CDTFA to represent the City with authority to examine those
transactions and use tax records of the Board for purposes related to the following
governmental functions of the City:
Resolution No. 2020-24
Page 2 of 3
a) City Administration
b) Revenue management and budgeting
c) Community and economic development
d) Business license tax administration
e) Transportation Planning
f) Forecasting
The information obtained by examination of CDTFA records shall be used only for those
governmental functions of the City listed above.
SECTION 5. The City Council of the City of Vernon hereby designates
MuniServices, LLC to examine the sales, transactions and use tax records of the
California Department of Tax and Fee Administration pertaining to transactions and use
taxes collected for the City by the Department. The person or entity designated by this
section meets all of the following conditions:
a) has an existing contract with the City to examine those sales, transactions and use
tax records;
b) is required by that contract to disclose information contained in, or derived from
those transactions and use tax records only to the officer(s) or employee(s)
authorized under Section 3 or Section 4 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 and use tax records after that contract has expired.
SECTION 6. The information obtained by examination of Board records shall be
used only for purposes related to the collection of City's sales, transactions and use taxes
by the Board pursuant to the contracts between the City and Board.
Resolution No. 2020-24
Page 3 of 3
SECTION 7. The City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 711 da ply, 2020.
LETICIA LOPEZ, Mayor
ATTEST:
Yd-)- Mx
LISA POPE, City Clerk
(seal)
APPROVED AS TO FO M:
��A NOLD M. AL AREZ-GLASMAN,
Interim City Attorney
I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2020-24 was passed and
adopted by the City Council of the City of Vernon at the regular meeting on July 7, 2020
by the following vote:
AYES: 5 Council Members: Davis, Gonzales, Menke, Ybarra, Lopez
NOES: 0
ABSENT: 0
ABSTAIN::ry^ 0
LISOPE, City Clerk
(seal)
CERTIFICATE
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES)
I, Lisa Pope, City Clerk of the City of Vernon, County of
Los Angeles, State of California, hereby certify that the
attached is a full and complete copy of :
RESOLUTION NO. 2020-24 - A Resolution of the City Council of
the City of Vernon Authorizing Examination of Sales, Use and
Transactions Tax Records
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official Seal of the City of Vernon, County of Los Angeles,
State of California, on this A L rk day of October 2020 .
SEAL:
Y( APiee
Lisa Pope
City Clerk
STAFF REPORT
City Council Agenda Item Report
Agenda ftem No. COV-239-2020
Submitted by. Angela Melgar
Submitting Department: Financerreasury
Meeting Date: July 7, 2020
SUBJECT
Implementation of the Citys Local Transactions and Use Tax (April 14, 2020 Measure V)
Recommendation:
A. Adopt Resolution No. 2020-23 approving and authorizing the Finance Director to execute a
Preparatory Agreement and an Administrative Agreement with the California Department of Tax and Fee
Administration for the collection and distribution of the Local Transaction Use Tax; and
B. Adopt Resolution No. 2020-24 authorizing examination of sales, use and transactions tax records.
Background:
At the April 14, 2020 General Municipal Election, the majority of voters of the City of Vernon approved
Measure V, adopting Ordinance No.1269, to increase the sales tax by three-quarter of one percent,
providing up to $6 million annually, to maintain and improve City services including safety, infrastructure,
streets and housing. On April 21, 2020, the Council certified the results of the election and ratified
Ordinance No.1269, adding Vernon Municipal Code Chapter 20A to enact a transactions and use tax
rate of three-quarters of one percent (0.75%) of the gross receipts of any retailer from the sale of all
tangible personal property sold at retail in the incorporated territory of the City. The proceeds from the
transactions and use tax shall be deposited in the general fund of the City and available for any lawful
governmental purpose.
Pursuant to Vernon Municipal Code Section 20A.1.(b), the City shall contract with the California
Department of Tax and Fee Administration (CDTFA) to perform all functions incidental to the
administration and operation of this transactions and use taxordinance. Pursuantto Vernon Municipal
Code Section 2.17.12 at seq., competitive bidding or competitive selection is not required because the
services are provided by a governmental entity, and because the entity is the sole service provider.
Resolution No. 2020-23 authorizes the Finance Director to execute an agreement with the CDTFA to
administer and operate the Citys Transactions and Use Tax ordinance and an agreement for State
administration of the Citys transactions and use taxes.
Resolution No. 2020-24 authorizes examination of sales, use and transactions tax records. The City
deems it necessary for its authorized representatives to examine confidential transactions and use tax
records of the CDTFA pertaining to transactions and use taxes collected by the Board for the City
pursuant to that contract.
Fiscal Impact:
The City shall pay the CDTFA for preparatorywork necessary to administer the Citys transactions and
use tax ordinance. The amount to be paid by the City for the CDTFA's preparatory costs shall not exceed
one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272).
Additionally, the City agrees to pay to the CDTFA as the State's cost of administering the City Ordinance
such amount as is proHded for bylaw. Such amounts shall be deducted from the taxes collected by the
Department for the City.
Attachments:
1. Resolution No. 2020-23 Agreements for Sales Tax Implementation
2. Resolution No. 2020-24 Examination of Tax Records