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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY26, Q1) for Transmittal to City Council, and (2) Approval of the Real Property Transfer Tax Status Report (FY26, Q2) for Transmittal to City Council.
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Meeting Date: February 11, 2026
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 (02/05/2026)
Departmental Approval: Lisa Soghor, Assistant City Manager (02/05/2026)
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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 2025-2026, First Quarter) and Real Property Transfer Tax Status Report (Fiscal Year 2025-2026, Second 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 2025-2026, First Quarter (July - September 2025).
The City’s Measure CC and Measure C actual tax receipts increased by 9.4% from the same period in 2024. However, after adjusting 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 - September 2025) 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 Second Quarter of Fiscal Year 2025-2026 (October - December 2025).
RPTT revenue was lower than the preceding two quarters due to the lack of sales of large commercial properties. Considering low revenues in recent years, staff 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 Fiscal 2025-2026 budgeted amount with a total of $6,072,162 collected through December 2025. Staff will recommend increasing the revenue projection by $3 million as a part of the midyear budget. The City received $1,005,835 in RPPT during this period compared to $756,787 in 2024 and $1,209,764103 in 2023. The report for the Second Quarter of Fiscal Year 2025-2026 (October - December 2025) is provided as Attachment 2.
ATTACHMENTS
1. 2026_02_11 ATT1 - Measures CC & C Status Report Q1 FY26
2. 2026_02_11 ATT2 - Real Property Transfer Tax Status Report Q2 FY26
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