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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY25, Q2) for Transmittal to City Council, and (2) Approval of the Real Property Transfer Tax Status Report (FY25, Q3) for Transmittal to City Council.
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Meeting Date: May 14, 2025
Contact Person/Dept: James Lambert/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: (Email) Meetings and Agendas - Finance Advisory Committee (05/08/2025)
Departmental Approval: Lisa Soghor, Chief Financial Officer (05/07/2025)
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RECOMMENDATION
Staff recommends the Finance Advisory Committee (FAC) approve the Measure CC and Measure C Sales Tax Status Reports (Fiscal Year 2024-2025, Second Quarter) and Real Property Transfer Tax Status Report (Fiscal Year 2024-2025, Third Quarter) for transmittal to City Council.
BACKGROUND/DISCUSSION
In November 2012, Culver City residents voted in support of Measure Y, a half-cent transaction and use tax to maintain critical City services for 10 years. In March 2020, Culver City voters approved ballot Measure CC, the continuation of the half-cent tax through 2033. As part of the FAC Work Plan, the Committee shall “continue to provide quarterly reports to the City Council on Measure CC proceeds."
In November 2018, Culver City voters approved Measure C which imposed a local quarter-cent 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 went into effect 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 and expenditures to the City Council. The FAC Work Plan includes this requirement.
The FAC and staff have worked with the City’s sales tax consultant, HdL Industries, to create Quarterly Reports for Measure CC and Measure C to provide background information, identify top 25 sales tax producers, and show the cumulative totals received for each period.
Due to the timing of when the City receives the sales tax data from the California Department of Tax and Fee Administration (CDTFA), Measure CC and Measure C reports for review this period cover Fiscal Year 2024-2025, Second Quarter (October - December 2024).
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 & receivable” 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 - December 2024) is provided as Attachment 1.
In addition to the review of quarterly review of Measure C and CC, the FAC has requested to review and transmit a Real Property Transfer Tax Status Report to the City Council. The Real Property Transfer Tax (RPTT) is a one-time tax imposed by the City when a property is sold in Culver City. RPTT revenues go into the General Fund and are used to provide services including but not limited to deferred maintenance of parks, facilities, and streets, services to address homelessness, and programs for seniors and youths.
RPTT payments are issued directly to the City from Los Angeles County. As a result, the reporting of RPTT data does not have the same delay as the sales tax data collected and administered by the State. The RPTT report for review this period covers the Third Quarter of Fiscal Year 2024-2025 (January - March 2025).
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 $1,028.760.76. The City received $1,542,793 in RPPT during this period as compared to $2,593,873 in 2024 and $719,902 in 2023. The report for the Third Quarter of Fiscal Year 2024-2025 (January - March 2025) is provided as Attachment 2.
ATTACHMENTS
1. 2025_05_14 ATT1 - Measures CC & C Status Report Q2 FY25
2. 2025_05_14 ATT2 - Real Property Transfer Tax Status Report Q3 FY25
MOTION
That the Finance Advisory Committee:
1. Authorize transmittal of the Quarterly Status Reports (Measure C and Measure CC, and Real Property Transfer Tax) to the City Council