Title
Recommendation to Approve the Execution of a Reciprocal Tax Information Sharing Agreement between the City of Alameda and the Franchise Tax Board of the State of California. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Approve the Execution of a Reciprocal Tax Information Sharing Agreement between the City of Alameda and the Franchise Tax Board of the State of California
BACKGROUND
Effective January 2009, resulting from the enactment of Senate Bill 1146, the Franchise Tax Board (FTB) and participating cities began exchanging tax information data through a reciprocal agreement, to be used for tax revenue collection efforts by cities and the FTB. In order to participate in this program, the FTB requires that the City Council authorize the execution of the Reciprocal Tax Information Sharing Agreement by the passage of a motion.
DISCUSSION
The objective of this agreement is to share information with, and receive information from, the FTB, which will assist staff in expanding collection of business license fees. All data exchanges will occur via a Secure Web Internet File Transfer (SWIFT). All data received from and sent to the FTB is to be kept confidential and must be destroyed after three years per the agreement with the FTB. This agreement is a continuation of a prior agreement Council approved June 27, 2012 for the period June 2012 to December 2014. It will be in effect for the period of June 2015 through December 2017.
FINANCIAL IMPACT
There are no financial costs associated with the adoption of the City's reciprocal agreement with the FTB. The City may realize an undetermined increase in business license revenue based upon follow-up collection efforts using the data received from the FTB.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
There are no municipal code or policy documents related to this matter.
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