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CC - CONSENT ITEM: Receipt and Filing of Measure CC and Measure C Sales Tax Status Reports (FY 2024-2025, Second Quarter) and Real Property Transfer Tax Status Report (FY 2024-2025, Third Quarter), as Approved by the Finance Advisory Committee.
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Meeting Date: June 23, 2025
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 (06/19/2025); (Email) Meetings and Agendas - Fiscal and Budget Issues (06/19/2025)
Departmental Approval: Lisa Soghor, Chief Financial Officer (06/06/2025)
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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, Second Quarter) and Real Property Transfer Tax Status Report (FY 2024-2025, Third Quarter), as approved by the Finance Advisory Committee (FAC) on May 14, 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 2024-2025 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 Second Quarter of Fiscal Year 2024-2025 (October 1 - December 31, 2024) or the fourth quarter of the calendar year.
The City’s Measure CC and Measure C actual tax receipts increased by 2.3% from the same period in 2023. However, after reporting modifications such as audit adjustments and delayed payments, the actual sales were only up 1.1%. Some business groups such as “restaurants and hotels”, “business and industry”, and “building and construction” increased from the same period in 2023 while others, such as “general consumer goods” and “food and drugs”, declined. Automobile purchases by Culver City residents improved by almost 5% but the falling price of crude oil resulted in a 12% decrease in “fuel and service station” receipts. A large, one-time taxpayer payment boosted “transfers & receivables” by 179% and contributed to the second quarter’s positive result. In comparison, sales tax for Los Angeles County declined 2.8% and the Southern California region was down 1.2% over the same period. The report for the Second Quarter of Fiscal Year 2024-2025 (October 1 - December 31, 2024) 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 2024-2025 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 Third Quarter of Fiscal Year 2024-2025 (January 1 - March 31, 2025) or the first quarter of the calendar year.
RPTT revenue has remained low due to the soft residential and commercial real estate markets but January, anchored by a large commercial sale, showed the year’s highest receipts to date with a total of $1,028,761. The City received $1,542,793 in RPTT during this period compared to $2,593,873 in 2024 and $719,902 in 2023. The City budgeted $8 million in anticipated revenue from Measure RE in the Adopted Budget for Fiscal Year 2024-2025 but, because of the low revenue through the second quarter of the fiscal year, reduced the budgeted amount to $4 million in the revised midyear budget approved by the City Council on February 24, 2025. The report for the Third Quarter of Fiscal Year 2024-2025 (January 1 - March 31, 2025) is provided as Attachment 2.
On May 14, 2025, the FAC reviewed and approved the attached reports on Measure CC, Measure C and Measure RE for transmittal to Council.
FISCAL ANALYSIS
The receipt and filing of these reports do not create a fiscal impact.
ATTACHMENTS
1. 2025-06-23 ATT_1 - Measures CC & C Status Report Q2 FY25.pdf
2. 2025-06-23 ATT_2 - Real Property Transfer Tax Status Report Q3 FY25.pdf
MOTIONS
That the City Council:
Receive and file the Measure CC, C, and Real Property Transfer Tax Status Reports.