REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Authorizing the Examination of Sales and Use Tax Records by Certain Designated Parties for Official Purposes
Report
BACKGROUND
Pursuant to Ordinance No. 810, the City of Santa Clara has entered into a contract with the California Department of Tax and Fee Administration (CDTFA) (formerly the State Board of Equalization) to perform all functions incident to the administration and collection of sales and use taxes. As the City relies on the revenue reported and collected by the CDTFA, authorized representatives of the City examine confidential sales and use tax records pursuant to the requirements and conditions of Section 7056 of the California Revenue and Taxation Code.
One of the requirements of Section 7056 is the adoption of a resolution designating City positions and entities that are authorized to examine the City’s sales and use tax records. The most recent resolution was approved by the City Council on August 19, 2014. This memorandum brings forward a new resolution (Attachment 1) with updated access to the City’s records.
DISCUSSION
Beginning July 1, 2026, the City has changed its third-party contractor that will perform sales and use tax audits from MuniServices, LLC (dba Avenu MuniServices, LLC) to Hinderliter, De Llamas & Associates (dba HdL Companies). As a result, it is necessary to update the access information with the CDTFA. The attached resolution would grant access to HdL Companies and would also allow MuniServices, LLC to continue to access the City’s sales and use tax data to close out its existing audits. For reference, Attachment 2 is the agreement with HdL Companies effective July 1, 2026, and Attachment 3 is the agreement with MuniServices, LLC that expired June 30, 2026.
The resolution also updates the City classification titles that have access to the sales and use tax records.
ENVIRONMENTAL REVIEW
The actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations in that they are fiscal activities that do not involve any commitment to any specific project which may result in a potential significant physical impact on the environment.
FISCAL IMPACT
There is no fiscal impact associated with the update to the access to sales and use tax records. The City will continue to use a third-party contractor to conduct sales and use tax audits.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a resolution authorizing the examination of sales and use tax records by certain designated parties for official purposes.
Staff
Reviewed by: Linh Lam, Acting Director of Finance
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Resolution Authorizing the Examination of Sales and Use Tax Records
2. Agreement with Hinderliter, De Llamas & Associates (dba HdL Companies)
3. Agreement with MuniServices, LLC (dba Avenu MuniServices, LLC)