TITLE
Adopt resolution authorizing City Manager, or designee, and MuniServices, LLC, to examine records relating to the Transactions and Use Tax, collected by the BOE. (Citywide)
DISCUSSION
With the adoption of Resolution 16-017 on February 23, 2016, the City placed a 1 percent Transactions and Use Tax measure (Measure A) and a Budget Stabilization (Rainy Day) Fund measure (Measure B) on the June 7, 2016 ballot. On March 1, 2016, the City Council adopted Ordinance 1516, adding Chapter 3.62 to the Long Beach Municipal Code, to impose a Transactions and Use Tax and establish a Budget Stabilization Fund subject to the outcome of the June 7, 2016 election.
Measure A, and the accompanying Measure B, were approved by a majority of City of Long Beach voters on June 7, 2016.
The California State Board of Equalization (BOE) administers and collects the Transactions and Use Taxes for all jurisdictions within the State. Accordingly, they will also be responsible for the administration and collection of Measure A. In order to allow the BOE to complete these tasks and complete appropriate preparations for collection of the new tax beginning January 1, 2017, the BOE requires adoption of the attached Resolution authorizing a City official to execute the following two agreements:
1. Agreement for Preparation to Administer and Operate City’s Transactions and Use Tax Ordinance.
2. Agreement for State Administration of City’s Transactions and Use Taxes.
Additionally, since 1983, the City has contracted for services of revenue recovery firms to provide sales and use tax auditing, projection and recovery services. The City has retained MuniServices, LLC (MuniServices), since 2007 to provide technical expertise to perform these services, which are not available within the City. These services include the examination of sales and use tax records to ensure that these taxes are properly attributed to the City and facilitating the process of correcting misallocations by the B...
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