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CC - CONSENT ITEM: Receipt and Filing of Measure CC and Measure C Sales Tax Status Reports (FY 2024-2025, Fourth Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, First Quarter), as Approved by the Finance Advisory Committee.
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Meeting Date: January 12, 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 (01/07/2026); (Email) Meetings and Agendas - Fiscal and Budget Issues (01/07/2026)
Departmental Approval: Lisa Soghor, Chief Financial Officer (12/31/2025)
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RECOMMENDATION
Staff recommends the City Council receive and file the attached Measure CC and Measure C Sales Tax Status Reports (FY 2024-2025, Fourth Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, First Quarter), as approved by the Finance Advisory Committee (FAC) on November 12, 2025.
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 Fourth Quarter of Fiscal Year 2024-2025 (April 1 - June 30, 2025) or the first quarter of the calendar year.
The City’s Measure CC and Measure C actual tax receipts increased by 3.6% from the same period in 2024. However, after excluding reporting aberrations, actual sales were up 3.5%. Some business groups such as “business and industry”, and “restaurants and hotels” increased from the same period in 2024 while others, such as “autos and transportation” and “food and drugs”, declined. The largest portion of the increase came from the “building and construction” group powered by contractors performing work within the City. “General consumer goods” increased due to strong ecommerce activity. The “fuel and service stations” group decreased, continuing to reflect the drop in fuel prices from 2024. In comparison, sales tax for Los Angeles County declined 1.1% over the same period and the Southern California region was down 0.1%. The report for the Fourth Quarter of Fiscal Year 2024-2025 (April 1 - June 31, 2025) is provided as Attachment 1.
This report is the final one for Fiscal Year 2024-2025. Measure CC and C revenues came in at slightly over 100% of the revised projections adopted at midyear.
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 First Quarter of Fiscal Year 2025-2026 (July 1 - September 30, 2025) or the second quarter of the calendar year.
RPTT revenue was higher this quarter than in previous years due to commercial property sales that occurred in July and September. Due to low revenues in recent years, staff projected annual revenues of $6 million in the Adopted Budget for Fiscal Year 2025-2026. The first quarter receipts started the year strong for this revenue source with 84% of the amount projected in the annual budget collected. Based on the strong revenues, staff will reevaluate the budget projection and revise in the midyear if necessary.
The City received $5,066,327 in RPPT during this period compared to $621,977 in 2024 and $2,611,103 in 2023. The report for the First Quarter of Fiscal Year 2025-2026 (July 1 - September 30, 2025) is provided as Attachment 2.
On November 12, 2025, 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 the Fourth Quarter of Fiscal Year 2014-2015 through the Fourth Quarter of Fiscal Year 2024-2025 (April 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. 2026-01-12 ATT_1 - Measures CC & C Status Report Q4 FY25.pdf
2. 2026-01-12 ATT_2 - Real Property Transfer Tax Status Report Q1 FY26.pdf
3. 2026-01-12 ATT_3 - 10-Year Sales Tax Trend Q4 FY15 - Q4 FY25.pdf
recommended action
MOTIONS
That the City Council:
Receive and file the Measure CC, C, and Real Property Transfer Tax Status Reports.