Item 27 - Resolution Authorizing a Reciprocal Agreement with the California Franchise Tax Board

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Finance and Management Services www.santa-ana.org/finance Item # 27 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 19, 2024 TOPIC: Non -Financial Agreement with the California Franchise Tax Board for Exchange of Business License Tax Data AGENDA TITLE Resolution Authorizing a Reciprocal Agreement with the California Franchise Tax Board for the Exchange of Business License Tax Data RECOMMENDED ACTION 1. Adopt a resolution authorizing a reciprocal agreement with the California Franchise Tax Board for the exchange of business license tax data. RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY OF SANTA ANA AUTHORIZING A RECIPROCAL AGREEMENT WITH THE CALIFONIA FRANCHISE TAX BOARD FOR THE EXCHANGE OF BUSINESS LICENSE TAX DATA 2. Approve a non -financial reciprocal agreement with the California Franchise Tax Board for the exchange of business license tax data (Agreement No. A-2024-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The City of Santa Ana Municipal Code ("SAMC") Chapter 21, known as the Business License Tax Code, is intended to provide revenue for the general operation of the City by the levy of a business license tax on all business transactions or activities carried on or occurring within Santa Ana. It is not intended as a regulatory measure. The data exchange program with the California Franchise Tax Board ("FTB"), which began because of the enactment of Senate Bill 1146 on September 26, 2008, enables both Santa Ana and the FTB to share information and identify non -compliant businesses. The City has been participating in the data exchange program since 2022, and has conducted audits of business license data to ensure the City receives the revenue it is legally entitled to collect.