REPORT TO COUNCIL
SUBJECT
Title
Renewal of Business License Tax Data Exchange Agreement with the California Franchise Tax Board
Report
BACKGROUND
Chapter 5.04 of the Sunnyvale Municipal Code is known as the Business License Tax Ordinance of the City of Sunnyvale. Section 5.04.100 states: "No person shall transact, engage in, or carry on any business within the City without first having procured a license from the City to do so and having paid the tax".
Finance staff regularly conducts audits to locate businesses that are operating in Sunnyvale without a license in violation of Chapter 5.04 of the Municipal Code. In 2009, the Council approved an agreement with the California Franchise Tax Board (FTB) to exchange data related to Business Licensing (RTC 09-232). Staff would like to continue to utilize data received from the FTB as a resource to identify businesses that have not paid the Business License Tax.
This data exchange program began as a result of the enactment of Senate Bill 1146 on September 26, 2008. This act authorizes a city to enter into a reciprocal agreement with the FTB to exchange tax data. The data exchange will enable both parties to identify any non-compliant businesses. The act took effect on January 1, 2009. The City of Sunnyvale initially entered an agreement in September 2009, and Council approved a renewal of the agreement in 2012 (RTC 12-053), which expired on December 31, 2014. The term of the new agreement will begin upon return of the signed agreement and will continue until December 31, 2017.
EXISTING POLICY
Council Policy 7.1B.3.2 states: An aggressive collection system for all accounts receivable will be utilized to assure that monies due to the City are received in a timely fashion.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review under CEQA Guideline 15378(b)(5) (administrative activities that will not result in a direct or indirect physical change to the environment). (CEQA Guideline 15...
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