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

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State of California Franchise Tax Board EXHIBIT A SCOPE OF WORK City of Santa Ana Agreement # 107503 This Agreement is entered into by and between the Franchise Tax Board, herein after referred to as (FTB), and the City of Santa Ana, herein after referred to as the City. Purpose: This Agreement provides for the reciprocal exchange between FTB and the City tax data specific to city business license information for tax administration purposes. By entering into a reciprocal agreement, each party agrees to bear its own costs of providing the data, and the City is precluded from obtaining reimbursement. Both parties will abide by the legal and confidential provisions of this Agreement. Exhibits A, B, C, D, E, F, and G, attached hereto and incorporated by reference herein, set forth additional terms to which the parties agree to be bound. No Federal Tax Information will be exchanged. Legal Authority: California Revenue and Taxation Code (R&TC) Section 19551.1 authorizes a reciprocal agreement for the exchange of specified tax information between a City/County and FTB. R&TC Section 19551.5 mandates cities/counties to provide city/county business licensing and tax information to FTB upon request. City Responsibilities: 1. The City agrees that the information provided by FTB will be used exclusively to administer the City/County Business Tax Program. 2. The City agrees that information obtained under this Agreement will not be reproduced, published, sold, or released in original or in any other form for any purpose; and will only be accessed or used by City employees whose duties are to administer the City/County Business Tax Program. 3. The City agrees to provide FTB with tax information pursuant to Format Specifications, Exhibit E, which shall include, but not be limited to, the following: • Business or owner's name • Business address • Federal Employer Identification Number (FEIN) or Social Security Number (SSN) • Ownership type • North American Industry Classification Code or Standard Industry Classification Code • Business start and cessation dates • City Business Tax Number, to be assigned to the City by FTB 4. The City agrees to extract and provide city data to FTB annually between April and July for each tax year that the Agreement is in place. If the Agreement is executed after July 31, 2025, the City will have 30 days after execution to provide FTB with the first year's data. Page 1 of 13