SR-200-004 (4)
FD:RB:DC/g:\finance\treas\share\hdlstax
Council Meeting: March 27, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Resolution Authorizing HdL Companies to Examine State Board of
Equalization records for the Purposes of Conducting Sales Tax Auditing and
Information Services for the City
Introduction
This report recommends that the City Council adopt a resolution authorizing The HdL
Companies consulting firm to examine State Board of Equalization (SBOE) records on
behalf of the City for the purposes of conducting sales tax auditing and information
services for the City.
Background
On February 13, 2001, the City Council authorized the City Manager to negotiate and
execute a contract with The HdL Companies to provide sales tax auditing and
information services for the City. Section 7056 of the State Revenue and Taxation
Code sets forth certain requirements and conditions for the disclosure of SBOE
records.
Specifically, the statute requires that the City designate, by resolution, parties
permitted to examine SBOE records for the purposes of ascertaining whether sales
and use taxes are being properly allocated to the City.
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Discussion
Adoption of the attached resolution will allow The HdL Companies, upon execution of
their contract with the City, to begin performing sales tax audit and information services
for the City. Section 7056 of the Revenue and Taxation Code requires that the City
and
any other designated party authorized to examine SBOE records maintain the
confidentiality of these records and set forth criminal penalties for the unlawful
disclosure of such confidential information. The proposed contract between the City
and HdL, and the attached resolution, represent Hdl’s agreement to comply with the
confidentiality requirements.
Budget/Financial Impact
Adoption of the attached resolution will have no budget or financial impact on the City.
Recommendation
Staff recommends that the City Council adopt the attached resolutionauthorizing The
HdL Companies consulting firm to examine State Board of Equalization (SBOE) records
on behalf of the City for the purposes of conducting sales tax auditing and information
services for the City.
Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, City Treasurer/Revenue Manager
David Carr, Assistant City Treasurer
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Attachments: Resolution
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