HomeMy WebLinkAboutMINUTES - 01241989 - 1.54 n1`
1. 054
TO* BOARD OF SUPERVISORS
FROM: Phil Batchelor, 1,���,,��,,,,}}tr,a
County Administrator CJ1JJlCi
DATE: January 17 , 1989
@ CIO^
SUBJECT: SALES TAX
SPECIFIC REQUEST(S) OR RECOMMENDATION S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Accept the report of the County Administrator and support the proposal for
a study of sales tax accounts within the County.
BACKGROUND:
In response to a September inquiry by the County Administrative Office
staff, the State Board of Equalization researched and determined that it
had improperly distributed sales and use taxes for one account to the City
of Pittsburg rather than the County. Apparently, the change of ownership
of USS-POSCO in 1986 was inaccurately recorded as being within the city
limits instead of the unincorporated area. Formal notification of this
State determination was received in December with assurances that future
distributions from the account will be credited to the County.
The error resulted in Pittsburg receiving $884,667 in sales and use taxes
from April 1986 through September 1988 . Of that amount, the State
indicated that $46 , 895 will be redistributed to -the County in the second
and third quarters of this fiscal year and $746, 306 will be redistributed
from future sales and use taxes collected by the City from January through
June of 1989 . However, on December 27, the City of Pittsburg paid the
County $746 , 306 . This means that the County has recovered all but $91, 466.
Recovery of the remaining $91,466 has significant obstacles according to
County Counsel. The Revenue and Taxation Code allows a jurisdiction to
recover only two quarters of back taxes. Section 7209 states :
The board may redistribute tax, penalty and interest distributed to a county
or city other than the county or city entitled thereto but such redistribution
shall not be made as to amounts originally distributed earlier than two
quarterly periods prior to the quarterly period in which the board obtains
knowledge of the improper distribution.
County Counsel advises that recovery actions against the State or City
would require a finding of negligence or unjust enrichment.
The County Administrator has proposed that all sales tax accounts within
the cities and county be reviewed for proper recording. It is proposed
that this study be undertaken in cooperation with the Auditor ' s Office
beginning this month. Board support of this effort is requested.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
S I GNATURE S : (� v
ACTION OF BOARD ON January , 1989 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
Auditor,7Controller. ATTESTED JAN 2 4 1989
cc: County Administrator
PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY L ' 5 DEPUTY
M382/7-83