HomeMy WebLinkAbout2019-72 - Authorizing Access to Sales or Transaction and Use Tax Records and Documents Pursuant to California Revenue & Taxation Code Section 7056(B)RESOLUTION NO. 2019-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
ACCESS TO SALES OR TRANSACTION AND USE TAX
RECORDS AND DOCUMENTS PURSUANT TO
CALIFORNIA REVENUE & TAXATION CODE SECTION
7056(b)
WHEREAS, the City has retained the firm of Avenu Insights and Analytics, LLC
("Avenu/MuniServices") to provide sales and use tax analysis, identify errors and
omissions which may have resulted in deficient payments to the City, detect
misallocations and prepare documentation to the California Department of Tax and Fee
Administration ("CDTFA") to recover revenue;
WHEREAS, Avenu/MuniServices requires access to the City's sales tax data in
order to provide such analysis;
WHEREAS, Section 7056(b) of the Revenue and Taxation Code ("RTC") provides,
in pertinent part, that "When requested by resolution of the legislative body of any ... city
... the board [CDTFA] shall permit any duly authorized ... person designated by that
resolution, to examine all of the sales or transactions and use tax records of the board
pertaining to the ascertainment of those sales or transactions and use taxes to be
collected for the ... city ... "; and
WHEREAS, City wishes to provide access to all such tax records otherwise
confidential under RTC Section 7056 to certain staff at Avenu/MuniServices.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: Pursuant to RTC Section 7056(b), the City hereby provides and
requests the CDTFA to provide access to the staff working with Avenu/MuniServices on
the sales and use tax analysis to examine and use all confidential records and data of the
CDTFA pertaining to the ascertainment of the sales and use taxes collected or to be
collected by the CDTFA that are the subject of the sales and use tax analysis.
Section 2: To identify each person to whom access to records is to be provided
pursuant to RTC Section 7056(b), the Finance Director shall designate and maintain a list
of all staff members of Avenu/MuniServices who will be given such access pursuant to
this Resolution.
Resolution No. 2019-72
Page 2 of 3
Section 3: Pursuant to RTC Section 7056(b)(1), the City hereby certifies that:
A. The City has an existing contract with Avenu/MuniServices to examine the
aforementioned sales and use tax records to effectively advise the City;
B. The City's contract with Avenu/MuniServices requires thal
Avenu/MuniServices shall disclose confidential taxpayer information
contained in, or derived from, the aforementioned sales or transaction and
use tax records only to officers or employees of the City who are authorized
by resolution to examine the information;
C. Under the City's contract with Avenu/MuniServices, all staff members of
Avenu/MuniServices are prohibited from providing consulting services to
any retailer during the term of the City's contract with Avenu/MuniServices;
and
D. Under the City's contract with Avenu/MuniServices, Avenu/MuniServices is
prohibited from retaining the confidential taxpayer information contained in
or derived from the aforementioned sales and use tax records after that
contract has terminated.
Section 4: The records and information to be provided to Avenu/MuniServices
shall be used solely for the purpose of providing sales and use tax analysis, identifying
errors and omissions which may have resulted in deficient payments to the City, detecting
misallocations and preparing documentation to the CDTFA, and for no other purpose,
and shall be returned to the City after the contract has terminated.
Section 5: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 6: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Resolution No. 2019-72
Page 3 of 3
Section 7: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 8: This Resolution shall take effect immediately upon its adoption by the
City Council and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 13th day of August, 2019
Diand B. Dixon
Mayor
ATTEST:
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Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
Aaron C. Harp
City Attorney
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2019-72, was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 13th day of August, 2019; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Diane Dixon, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 14th day of August, 2019.
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Leilani I. Brown
City Clerk
Newport Beach, California