title
CC - CONSENT ITEM: Receipt and Filing of Measure CC and Measure C Sales Tax Status Reports (FY 2025-2026, First Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, Second Quarter), as Approved by the Finance Advisory Committee.
body
Meeting Date: March 9, 2026
Contact Person/Dept.: Lisa Soghor/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (03/04/2026); (Email) Meetings and Agendas - Fiscal and Budget Issues (03/04/2026)
Departmental Approval: Lisa Soghor, Assistant City Manager (03/02/2026)
______________________________________________________________________
RECOMMENDATION
Staff recommends the City Council receive and file the attached Measure CC and Measure C Sales Tax Status Reports (FY 2025-2026, First Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, Second Quarter), as approved by the Finance Advisory Committee (FAC) on February 11, 2026.
BACKGROUND/DISCUSSION
In November 2012, Culver City residents voted to adopt Measure Y, a half-cent transaction and use tax to maintain critical City services for 10 years. In March 2020, Culver City residents voted to adopt Measure CC to continue the half-cent tax through 2033.
In November 2018, Culver City voters passed Measure C, a quarter-cent local transaction and use tax to maintain the current level of public safety services, community programs, infrastructure maintenance, and other City services funded through the City’s General Fund. Measure C collections began in April 2019 and will remain in effect until ended by voters. The ballot measure included the stipulation that, if passed, the FAC would provide quarterly reports of fund proceeds to the City Council.
The FAC Fiscal Year 2025-2026 Schedule of Activities/Work Plan includes the review of Measure C and CC proceeds.
The California Department of Tax and Fee Administration (CDFTA) is responsible for administrating sales and other taxes for the entire state. Due to the time that it takes the CDTFA to collect sales tax, reconcile amounts received, remit payment and report quarterly sales tax data, there is a delay in the reporting of sales tax data. As a result, the Measure CC and Measure C reports for review this period cover the First Quarter of Fiscal Year 2025-2026 (July 1 - September 30, 2025) or the third quarter of the calendar year.
The City’s Measure CC and Measure C actual tax receipts increased by 9.4% from the same period in 2024. However, after accounting for audit adjustments and delayed payments, actual sales were up 5.7%. Some business groups increased from the same period in 2024 such as “general consumer goods.” Others, such as “food and drugs” and “fuel and service stations”, declined. Casual dining, including new restaurants, contributed to the increase of the “restaurants and hotels” group. “Business and industry” increased by nearly 15% as result of a large one-time payment in the heavy industrial segment while “building and construction” went up 21.3% driven by increased contractor activity and more spending on plumbing and electrical supplies. The “autos and transportation” group rebounded fueled by new car purchases, increasing after two quarters of decline. In comparison, sales tax for Los Angeles County was flat over the same period and the Southern California region was up 1.8%. The report for the First Quarter of Fiscal Year 2025-2026 (July 1 - September 30, 2025) is provided as Attachment 1.
Additionally, the FAC has requested to review and transmit a Real Property Transfer Tax Status Report to the City Council as part of its Fiscal Year 2025-2026 Schedule of Activities/Work Plan. The Real Property Transfer Tax (RPTT) is a one-time tax imposed by the City when property is sold in Culver City. As a result, this revenue source is highly elastic and unpredictable.
RPTT funds are issued directly to the City from Los Angeles County. As a result, the reporting for RPTT data does not have the same delay as the sales tax collected and administered by the state. Therefore, the RPTT report for review this period covers the Second Quarter of Fiscal Year 2025-2026 (October 1 - December 31, 2025) or the fourth quarter of the calendar year.
RPTT revenue was lower than the preceding two quarters due to the lack of sales of large commercial properties. The City received $1,005,835 in RPPT during this period compared to $756,787 in 2024 and $1,209,764 in 2023. Considering low revenues in recent years, staff had projected annual revenues of $6 million in the Adopted Budget for Fiscal Year 2025-2026. Despite lower revenue in the second quarter, the City has now exceeded the initial budgeted amount with a total of $6,072,162 collected through December 2025. On February 9, 2026, Council approved staff’s recommendation to increase the revenue projection for Fiscal Year 2025-2026 to $9 million as part of the midyear budget. The report for the Second Quarter of Fiscal Year 2025-2026 (October 1 - December 31, 2025) is provided as Attachment 2.
On February 11, 2026, the FAC reviewed and approved the attached reports on Measure CC, Measure C, and Measure RE for transmittal to Council.
At the June 23, 2025 meeting of the City Council, Council requested the inclusion of the 10-year trend of Sale Tax revenue with these quarterly reports to provide additional context. Charts showing the 10-year trends of Bradley-Burns Sales Tax revenue and Measure CC Sales Tax revenue are included as Attachment 3. The Bradley-Burns and Measure CC charts for review this period cover Fiscal Year 2015-2016 through Fiscal Year 2024-2025 (July 1, 2015 - June 30, 2025). The trend for Measure C is not included in the attachment but directly corresponds with Measure CC starting with the fourth quarter of Fiscal Year 2018-2019 as collection for Measure C revenue began in April 2019.
FISCAL ANALYSIS
The receipt and filing of these reports do not create a fiscal impact.
ATTACHMENTS
1. 2026-03-09 ATT1 - Measures CC & C Status Report Q1 FY26.pdf
2. 2026-03-09 ATT2 - Real Property Transfer Tax Status Report Q2 FY26.pdf
3. 2026-03-09 ATT3 - 10-Year Sales Tax Trend FY16 - FY25.pdf
recommended action
MOTIONS
That the City Council:
Receive and file the Measure CC, C, and Real Property Transfer Tax Status Reports.