CC - Item 4D - Adoption of Resolution No. 2021-56 Approving Certain City Officials to Receive and Review Sales and Use Tax InformationROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER ,
DATE: NOVEMBER 9, 2021
SUBJECT: ADOPTION OF RESOLUTION NO. 2021-56 APPROVING CERTAIN
CITY OFFICIALS TO RECEIVE AND REVIEW 'SALES AND USE TAX
INFORMATION
SUMMARY
Section 7056 of the California Revenue and Taxation Code sets forth certain requirements
and conditions for the disclosure of Department of Tax and Fee Administration (CDTFA)
records and establishes criminal penalties for the unlawful disclosure of information contained
in, or derived from, the sales, use and transactions tax records of the Department. As a result,
the CDTFA, formerly the State Board of Equalization (SBOE), requires local governing boards to
formally designate the titles of personnel that are entitled to receive and review sales and use tax
transaction data. Upon adoption, the positions authorized to receive and review this information
will be the City Manager, Assistant City Manager, City Attorney, Finance Director, Finance
Manager (new), and Community Development Director. The updated resolution also includes new
language to accommodate `acting' and `interim' designations for the authorized positions. Use of
this information is restricted and therefore, the purpose for receiving the sales and use data is
limited to revenue management and budgeting, community and economic development, business
license tax administration and city administration as defined in the Resolution. The City's third -
party vendor for review, audit, and analysis remains Hinderliter de Llamas and Associates (HdL
Companies). The City last updated this resolution in 2010.
STAFF RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2021-56 updating the positions
eligible to receive and review sales and use tax transaction data.
FINANCIAL IMPACT
None with this action.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
AGENDA ITEM 4.1)
City Council Meeting
November 9, 2021
Page 2 of 2
Submitted by:
Paula Chamberlain, Interim Finance Director
Attachment: Resolution No. 2021-56
Attachment A
Resolution No. 2021-56
RESOLUTION NO. 2021-56
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ROSEMEAD, CALIFORNIA,
AUTHORIZING CERTAIN CITY OFFICIALS AND
A CITY CONTRACTOR ACCESS TO SALES
AND USE TAX RECORDS PURSUANT TO
GOVERNMENT CODE SECTION 7056
WHEREAS, pursuant to Section 3.08.040 of the Municipal Code of the City of
Rosemead, hereinafter called `City' and Section 7270 of the Revenue and Taxation Code,
the City entered into a contract California Department of Tax and Fee Administration
(CDTFA) to perform all functions incident to the administration and operation of the
Uniform Local Sales and Use Tax Ordinance; and
WHEREAS, the City deems it desirable and necessary for the authorized
representatives of the District to examine confidential transactions and use tax records of
the CDTFA pertaining to transactions and use taxes collected by the Department for the City
pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth
certain requirements and conditions for the disclosure of Department of Tax and Fee
Administration records, and establishes criminal penalties for the unlawful disclosure of
information contained in, or derived from, the sales, use and transactions tax records of the
Department, and
NOW, THEREFORE, the City Council of the City of Rosemead has resolved as follows:
SECTION 1. That the City Manager, Assistant City Manager, City Attorney,
Finance Director, Finance Manager, and Community Development Director, including
acting or interim designations for all listed positions, are hereby appointed to represent the
City with authority to examine transactions and use tax records for the CDTFA pertaining
to transactions and use taxes collected for the City by the CDTFA.
SECTION 2. That the positions listed above are hereby appointed to represent the
City with authority to examine those transactions and use tax records of the Department for
purposes related to the following governmental functions of the City:
a) Revenue management and budgeting
b) Community and economic development
c) Business license tax administration
d) City administration
SECTION 3. Hinderliter de Llamas and Associates (HdL Companies) is hereby
designated to examine the transactions and use tax records of the CDTFA pertaining to
transactions and use taxes collected by the City by the Board. The person or entity designated by
this section meets all of the following conditions:
a) Has an existing contract with the City of Rosemead to receive sales and use tax records;
and
b) Is required by that contract to disclose information contained in, or derived from, those
sales and use tax records only to an officer or employee of the City who is authorized
by this resolution to examine the information; and
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
form, those sales tax records, after that contract has expired.
SECTION 4. Information obtained by examination of board records shall be used only for
purposes related to collection of local sales and use taxes by the board pursuant to the contract, or
for purposes related to other governmental functions.
SECTION 5. This resolution supersedes all previous transaction and use tax resolutions
of the City of Rosemead.
SECTION 6. The City Clerk shall certify to the adoption of this resolution and forward a
copy to the Board of Equalization.
PASSED, APPROVED, AND ADOPTED this 9th day of November, 2021.
Polly Low, Mayor
APPROVED AS TO FORM: ATTEST:
Rachel Richman, City Attorney Ericka Hernandez, City Clerk
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF ROSEMEAD
I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby
certify that the foregoing City Council Resolution No. 2021-56 was duly adopted by the City
Council of the City of Rosemead, California, at a regular meeting thereof held on the 9th day of
November, 2021, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk