REPORT TO THE CITY COUNCIL
FROM: RUTH F. QUINTO, CPA, Assistant City Manager
Office of the Mayor and City Manager
BY: SANTINO DANISI, MBA, City Controller/Finance Director
Finance Department
SUBJECT
Title
BILL - (For introduction) - Amending Subsection (a) of Section 7-504, and Subsection (a) of Section 7-505 of the Fresno Municipal Code relating to the local Sales and Use Taxes
Body
RECOMMENDATION
It is recommended that Council adopt the attached amendment to the Sales and Use Tax Ordinance, implementing an already agreed upon provision of a Memorandum of Understanding between the City of Fresno and the County of Fresno approved December 20, 2024 (2024 MOU).
EXECUTIVE SUMMARY
State law allocates one percent of Sales and Use Tax revenues to local governments. The 2024 MOU requires the City to adjust its proportional share of the one percent allocation pursuant to the agreed upon Sales Tax Revenue Sharing Proportion of 5%. The City's share of the Sales and Use Tax revenue generated within the City limits will increase by 0.0031 percent, from 0.9469 to 0.9500 percent of gross receipts, effective July 1, 2025. This Sales Tax Revenue Sharing Proportion will apply throughout the term of the MOU. The amount of the sales tax that is charged to the consumers remains unchanged. The sales tax remains cost neutral to the consumer by increasing the City's share and decreasing the County's share in the same amount.
BACKGROUND
On December 13, 2024, the City Council approved the 2024 MOU, which provides for a Sales Tax Revenue Sharing Proportion of 5% over the life of the agreement. Currently, Sales and Use Tax revenue generated within the City limits is allocated by providing 0.9469 percent of gross receipts to the City and 0.0531 percent of gross receipts to the County. The 2024 MOU requires the City to increase its share by 0.0031 percent for Fiscal Year 2025, and the County to decrease its share by the same amount. Only the distribution of the existing Sale...
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