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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY25, Q3) for Transmittal to City Council, and (2) Approval of the Real Property Transfer Tax Status Report (FY25, Q4) for Transmittal to City Council.
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Meeting Date: September 10, 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 (09/04/2025)
Departmental Approval: Lisa Soghor, Chief Financial Officer (09/04/2025)
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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, Third Quarter) and Real Property Transfer Tax Status Report (Fiscal Year 2024-2025, Fourth 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, Third Quarter (January - March 2025).
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, 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 - March 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 Fourth Quarter of Fiscal Year 2024-2025 (April - June 2025).
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 report for the Fourth Quarter of Fiscal Year 2024-2025 (April - June 2025) is provided as Attachment 2.
ATTACHMENTS
1. 2025_09_10 ATT1 - Measures CC & C Status Report Q3 FY25
2. 2025_09_10 ATT2 - Real Property Transfer Tax Status Report Q4 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