REPORT TO THE CITY COUNCIL
FROM: SANTINO DANISI, MBA, City Controller/Director
Finance Department
BY: JOCELYN FREITAS, Assistant Director
Finance Department
SUBJECT
Title
RESOLUTION - Authorizing a Reciprocal Data Exchange Agreement with the California Franchise Tax Board for the City/County Business Tax Program to exchange of business license tax data
Body
RECOMMENDATION
Staff recommends that City Council authorize a reciprocal agreement with the California Franchise Tax Board for the Exchange of Business License Tax Data. Recommended actions include: Adopt a Resolution authorizing a reciprocal agreement with the California Franchise Tax Board for the exchange of business license tax data; and Authorize the City Manager, Finance Director or their respective designee(s) to execute a non-financial reciprocal agreement with the California Franchise Tax Board for the exchange of business license tax data for a term beginning July 1, 2026, through December 31, 2028, subject to non-substantive changes approved by the City Manager and City Attorney.
EXECUTIVE SUMMARY
The City of Fresno (City) Municipal Code (FMC) Chapter 7, Article 10, known as the Business Licenses - General Provisions Code, is intended to provide a revenue stream 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 Fresno and is not intended for regulation.
The data exchange program with the California Franchise Tax Board (FTB) enables both Fresno and the FTB to share information and identify non-compliant businesses. By participating in the data exchange program, the City will have the ability to ensure that the City receives the revenue it is legally entitled to collect.
The Agreement with the FTB is valid for two years and seven months at a time. Under the terms of the Agreement with the FTB, the City will be required to send data to the FTB annually each June. The data required inclu...
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