| | | | | | | | 
TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Michael Zeller, Director of Programming & Project Delivery | | Meeting Date: | January 25, 2017 | | Subject: | Board of Equalization Agreements for Measure X |
| |
| | | | | | | | | RECOMMENDED ACTION: | Board of Equalization Agreements for Measure X:
- APPROVE Resolution 2017-01 authorizing the Executive Director to execute agreements with the State Board of Equalization for implementation of a local transaction and use tax; and
- APPROVE Resolution 2017-02 authorizing the examination of transactions (sales) and use tax records by designated Transportation Agency staff.
|
| |
| | | | | | | | | SUMMARY: | | In order to administer Measure X (the Transportation Safety & Improvement Plan), the Transportation Agency is required to enter into agreements with the California State Board of Equalization regarding collection of the sales tax for the measure, distribution of collected revenues back to the county, and the payment of administrative costs. |
| |
| | | | | | | | | FINANCIAL IMPACT: | | The amount to be paid by the Transportation Agency for the Board of Equalization's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000). This amount will be paid from sales tax revenues collected for Measure X, as directed by the approved ordinance for the Transportation Safety & Improvement Plan. |
| |
| | | | | | | | | DISCUSSION: | In order to implement Measure X (the Transportation Safety & Investment Plan), the Transportation Agency is required to enter into agreements with the California State Board of Equalization regarding the collection and distribution of revenues for the measure, and payment of the Board of Equalization's staff time in setting up the measure.
With Resolution 2017-01, the Transportation Agency is agreeing to pay to the Board of Equalization for all of the Board's costs for preparatory work necessary to administer the transactions and use tax ordinance. The Board of Equalization's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
Preparatory costs incurred by the Board of Equalization shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. The Transportation Agency would be required to pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
The amount to be paid by the Transportation Agency for the Board of Equalization's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) as directed by Revenue and Taxation Code Section 7272. These costs were expected in the preparation of the Transportation Safety & Improvement Plan and provisions for payment of these costs are included in the adopted ordinance for Measure X. These preparatory costs would be paid by the Agency from the collected Monterey County sales tax revenues from Measure X.
In addition, with Resolution 2017-02, the Transportation Agency Board of Directors would authorize representatives of the Agency to examine confidential transactions and use tax records of the State Board of Equalization pertaining to transactions and use taxes collected by the Board for Measure X. This resolution would designate the the Executive Director, Deputy Executive Director, and Director of Finance as representatives with authority to examine transactions and use tax records. |
| |
|