HomeMy WebLinkAboutResolution No. 10-7230 - Sales Tax AuditRESOLUTION NO. 10– 7230
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING
EXAMINATION OF SALES, USE AND TRANSACTIONS TAX RECORDS.
WHEREAS, pursuant to Ordinance 444, the City of Downey entered into a contract with
the State Board of Equalization to perform all functions incident to the administration and
collection of local sales, use and transactions taxes; and
WHEREAS, the City Council of the City of Downey deems it desirable and necessary for
authorized representatives of the City to examine confidential sales, use and transactions tax
records of the State Board of Equalization pertaining to sales, use and transactions taxes
collected by the Board 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 Board of Equalization 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 Board.
NOW. THEREFORE. THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager, or other officer or employee of the City designated
in writing by the City Manager to the State Board of Equalization (hereafter referred to as
Board), is hereby appointed to represent the City of Downey with authority to examine sales,
use and transactions tax records of the Board pertaining to sales, use and transactions taxes
collected for the City by the Board pursuant to the contract between the City and the Board.
The information obtained by examination of Board records shall be used only for purposes
related to the collection of City sales, use and transactions taxes by the Board pursuant to that
contract
SECTION 2. That the City Manager, or other officer or employee of the City designated
in writing by the City Manager to the Board, is hereby appointed to represent the City with
authority to examine those sales, use and transactions tax records of the Board, for purposes
related to the following governmental functions of the City:
(a) City administration
(b) Revenue management and budgeting
(c) Community and economic development
(d) Business license tax administration
The information obtained by examination of Board records shall be used only for those
governmental functions of the City listed above.
SECTION 3. That Hinderliter, de Llamas & Associates is hereby designated to examine
the sales, use and transactions tax records of the Board pertaining to sales, use and
RESOLUTION NO. 10– 7230
PAGE TWO
transactions taxes collected for 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 to examine those sales, use and transactions
tax records;
(b) is required by that contract to disclose information contained in, or derived from,
those sales, use and transactions tax records only to the officer or employee authorized under
Sections 1 or 2 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 sales, use and transactions tax records, after that contract has expired
The information obtained by examination of Board records shall be used only for purposes
related to the collection of City sales, use and transactions taxes by the Board pursuant to the
contract between the City and the Board and for purposes relating to the governmental
functions of the City listed in section 2 of this resolution.
APPROVED AND ADOPTED thIs 26tF' day of October, 2010
o
ATTEST
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KATHLEEN L. MIDSTOKKE, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 26TH day of October 2010, by the following
vote, to wit:
AYES:
NOES
ABSENT:
ABSTAIN
Council Members: Brossmer, Gafin, Guerra, Mayor Bayer
Council Member: NONE
Council Member: Marquez
Council Member: NONE
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KATHLEEN L. MIDSTOKKE, City Clerk