Title
Report regarding a resolution approving a Reciprocal Agreement with the State of California Franchise Tax Board to exchange tax data specific to city business licenses for tax administration purposes and authorizing the Director of Finance to enter into said Reciprocal Agreement (Karen Chang, Director of Finance)
Recommendation
It is recommended that the City Council adopt a resolution to approve a Reciprocal Agreement with the State of California Franchise Tax Board to exchange tax data specific to city business licenses for tax administration purposes and to authorize the Director of Finance to enter into said Reciprocal Agreement.
Body
BACKGROUND/DISCUSSION
In 2011, the City of South San Francisco ("City") entered into a Reciprocal Agreement with the State of California Franchise Tax Board ("FTB") to exchange tax information. The City provides business license data to the FTB, and in return, they provide tax data to the City. The program allows both parties to compare its records against the other to ensure compliance with local business license code and state tax reporting.
The current agreement with the FTB expired on December 31, 2020, and a resolution from the City Council is required to approve the renewal agreement and to authorize the Director of Finance to sign the renewal agreement. The program runs from June 1 to December 31, every two and half years.
Finance had signed a renewal agreement on October 14, 2021, however, the contract was incomplete as the FTB did not receive an approved Resolution, Motion or Order. The City was recently notified of this incomplete contract. Due to staffing changes both in the Finance Department and at the FTB, staff recommends proceeding with this contract renewal.
FISCAL IMPACT
There is no fiscal impact to the City.
CONCLUSION
Renewal of the Reciprocal Agreement with the Franchise Tax Board provides the City with an additional administrative tool to ensure compliance with business license requ...
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