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CC - CONSENT ITEM: Receipt and Filing of Measure CC and Measure C Sales Tax Status Reports (FY 2024-2025, Third Quarter) and Real Property Transfer Tax Status Report (FY 2024-2025, Fourth Quarter), as Approved by the Finance Advisory Committee.
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Meeting Date: October 27, 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 (10/22/2025); (Email) Meetings and Agendas - Fiscal and Budget Issues (10/22/2025)
Departmental Approval: Lisa Soghor, Chief Financial Officer (10/16/2025)
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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, Third Quarter) and Real Property Transfer Tax Status Report (FY 2024-2025, Fourth Quarter), as approved by the Finance Advisory Committee (FAC) on September 10, 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 Third Quarter of Fiscal Year 2024-2025 (January 1 - March 31, 2025) or the first quarter of the calendar year.
The City’s Measure CC and Measure C actual tax receipts increased by 4.2% from the same period in 2024. However, after reporting modifications such as audit adjustments and delayed payments, the actual sales were only up 2.7%. Some business groups such as “restaurants and hotels”, “general consumer goods”, and “building and construction” increased from the same period in 2024 while others, such as “autos and transportation” and “food and drugs”, declined. New automobile purchases by Culver City residents declined amid economic uncertainty and the “fuel and service stations” group decreased, reflecting the drop in fuel prices from 2024. A large purchase of construction materials related to a local development project, continued strong ecommerce activity, and the opening of a new restaurant contributed to the third quarter’s positive result. In comparison, sales tax for Los Angeles County, influenced by the local fires during this quarter, declined 1.6% over the same period and the Southern California region remained flat. The report for the Third Quarter of Fiscal Year 2024-2025 (January 1 - March 31, 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 Fourth Quarter of Fiscal Year 2024-2025 (April 1 - June 30, 2025) or the second quarter of the calendar year.
RPTT revenue increased sharply this quarter due to a large commercial sale in April. This quarter further demonstrates the unpredictability of RPTT as a revenue source as the RPTT from this sale exceeds the rest of the City’s RPTT for Fiscal Year 2024-2025 combined. The City received $6,845,183 in RPPT during this period compared to $970,246 in 2024 and $596,020 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. However, following this strong fourth quarter, the (unaudited) revenue from Measure RE for Fiscal Year 2024-2025 exceeded both estimates with a projected total of $9.8 million. The report for the Fourth Quarter of Fiscal Year 2024-2025 (April 1 - June 30, 2025) is provided as Attachment 2.
On September 10, 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 Third Quarter of Fiscal Year 2014-2015 through the Third Quarter of Fiscal Year 2024-2025 (January 1, 2015 - March 31, 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. 2025-10-27 ATT_1 - Measures CC & C Status Report Q3 FY25.pdf
2. 2025-10-27 ATT_2 - Real Property Transfer Tax Status Report Q4 FY25.pdf
3. 2025-10-27 ATT_3 - 10-Year Sales Tax Trend Q3 FY15 - Q3 FY25.pdf
MOTIONS
That the City Council:
Receive and file the Measure CC, C, and Real Property Transfer Tax Status Reports.