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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY25, Q4) for Transmittal to City Council, and (2) Approval of the Real Property Transfer Tax Status Report (FY26, Q1) for Transmittal to City Council.
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Meeting Date: November 12, 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 (11/06/2025)
Departmental Approval: Lisa Soghor, Chief Financial Officer (11/06/2025)
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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, Fourth Quarter) and Real Property Transfer Tax Status Report (Fiscal Year 2025-2026, First 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, Fourth Quarter (April - June 2025).
The City’s Measure CC and Measure C actual tax receipts increased by 3.6% from the same period in 2024. However, after excluding reporting aberrations, actual sales were up 3.5%. Some business groups such as “business and industry”, and “restaurants and hotels” increased from the same period in 2024 while others, such as “autos and transportation” and “food and drugs”, declined. The largest portion of the increase came from the “building and construction” group powered by contractors performing work within the City. “General consumer goods” increased due to strong ecommerce activity. The “fuel and service stations” group decreased, continuing to reflect the drop in fuel prices from 2024. In comparison, sales tax for Los Angeles County declined 1.1% over the same period and the Southern California region was down 0.1%. The report for the Fourth Quarter of Fiscal Year 2024-2025 (April - June 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 First Quarter of Fiscal Year 2025-2026 (July - September 2025).
RPTT revenue was higher this quarter than in previous years due to commercial property sales that occurred in July and September. Due to low revenues in recent years, staff projected annual revenues of $6 million in the Adopted Budget for Fiscal Year 2025-2026. The first quarter receipts started the year strong for this revenue source with 84% of the amount projected in the annual budget collected. The City received $5,066,327 in RPPT during this period compared to $621,977 in 2024 and $2,611,103 in 2023. The report for the First Quarter of Fiscal Year 2025-2026 (July - September 2025) is provided as Attachment 2.
ATTACHMENTS
1. 2025_11_12 ATT1 - Measures CC & C Status Report Q4 FY25
2. 2025_11_12 ATT2 - Real Property Transfer Tax Status Report Q1 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