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Item 23 - Adopt a Resolution and Approve Agreement for Tax Revenue Auditing, Analysis, Forecasting, and Reporting Service
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Item 23 - Adopt a Resolution and Approve Agreement for Tax Revenue Auditing, Analysis, Forecasting, and Reporting Service
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7/10/2024 5:22:02 PM
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City Clerk
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Agenda Packet
Agency
Finance & Management Services
Item #
23
Date
7/16/2024
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(9) <br />CITY OF SANTA ANA <br />ii. Evaluate consistency between gross receipts and other information reported on <br />financial statements to what was reported to the CDTFA for sales and use tax, <br />cannabis excise tax, and/or cultivation tax. In addition, evaluate consistency <br />between gross receipts reported on financial statements to gross receipts reported <br />to the City. <br />iii. The auditor shall have access to examine any of the following records or books, <br />whenever necessary, to ascertain the amount of any tax due, as required by the <br />City's municipal code. <br />4. Any point of sale (POS) inventory control and reporting system that can produce historical <br />transaction data for review by the City. <br />5. Legible, clear, adequate, and accurate books, records, and documentation maintained on the <br />premises for a minimum of five (5) years, that detail all the revenues and expenses, and assets <br />and liabilities of the business. <br />6. A complete set of books of account, invoices, copies of orders and sales, bills, bank statements <br />(including cancelled checks and deposit slips), and all other records necessary to fully show <br />transaction history. <br />7. Provide any additional assistance as necessary to support the City in recovering and preventing <br />tax deficiencies and delinquencies. <br />8. Prepare documents to facilitate recovery of revenue and applicable penalties and interest, <br />including requests for corrective action. <br />9. Provide comparative information with other cities having a local Cannabis tax. <br />E. Option E: Hotel Visitors Tax (HVT, more commonly known as Transient Occupancy Tax) <br />1. Identify and advise City of legislation potentially impacting City revenue, including pending <br />legislation. <br />2. Prepare biannual revenue estimates and include assumptions. Represent the City for the purpose <br />of obtaining information from hotels to assist with preparation of revenue estimates. Schedule <br />biannual meetings with staff to review the estimates and assumptions. <br />3. Provide HVT audit services in accordance with the City's municipal code (Chapter 35, Article V), <br />based on a mutually agreed upon plan and schedule. Identify the range of cost per audit based <br />on a minimum of 2 audits per year. Represent the City for the purpose of examining records <br />related to the applicable tax revenue. Schedule meetings with staff as needed. <br />4. Prepare documents to facilitate recovery of revenue and applicable penalties and interest, <br />including requests for corrective action. <br />5. Provide comparative information with other cities having a TOT. <br />F. Option F: Utility Users Tax (UUT) for Electric, Gas & Telecommunications Services <br />1. Identify and advise City of legislation potentially impacting City revenue, including pending <br />legilsation. <br />2. Prepare biannual revenue estimates and include assumptions. Represent the City for the purpose <br />of obtaining information from utility providers to assist with preparation of revenue estimates. <br />Schedule biannual meetings with staff to review the estimates and assumptions. <br />3. Provide UUT audit services in accordance with the City's municipal code (Chapter 35, Article VI), <br />based on an agreed -to plan and schedule. Identify the range of cost per audit based on a minimum <br />of 1 audit per year. The audits will include corresponding franchise fees as applicable. Represent <br />the City for the purpose of examining records related to the applicable tax and fee revenue. <br />Schedule meetings with staff as needed. <br />4. Prepare documents to facilitate recovery of revenue and applicable penalties and interest, <br />including requests for corrective action. <br />City of Santa Ana RFP No. 24-010 Page 20 of 38 <br />
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