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(1) Approval of the Measure CC and Measure C Sales Tax Status Report (FY26, Q2) for Transmittal to City Council, and (2) Approval of the Real Property Transfer Tax Status Report (FY26, Q3) for Transmittal to City Council.
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Meeting Date: June 10, 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 (06/05/2026)
Departmental Approval: Michael Towler, Finance Manager (06/05/2026)
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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, Second Quarter) and Real Property Transfer Tax Status Report (Fiscal Year 2025-2026, 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 2025-2026, Second Quarter (October - December 2025).
The City’s Measure CC and Measure C actual tax receipts increased by 6.6% from the same period in 2024. However, after adjusting for taxpayer payment corrections and timing related irregularities, actual sales were up 1.8% for Measure CC and 1.4% for Measure C. Some business groups increased from the same period in 2024 such as “general consumer goods” and “building and construction.” Others, such as “fuel and service stations”, declined. The “general consumer goods” increase was driven by increased ecommerce activity and higher holiday season sales. The “autos and transportation” group declined following the expiration of electric vehicle tax subsidies while “fuel and service stations” declined due to lower gas prices compared to the prior year. In comparison, sales tax for Los Angeles County increased 0.4% over the same period and the Southern California region was up 1.0%. The report for the Second Quarter of Fiscal Year 2025-2026 (October - December 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 Third Quarter of Fiscal Year 2025-2026 (January - March 2026).
RPTT revenue rebounded this quarter from the low previous quarter but did not match the high returns of the fourth quarter of fiscal year 2024-2025 or first quarter of fiscal year 2025-2026. Considering low revenues in recent years, staff projected annual revenues of $6 million in the Adopted Budget for Fiscal Year 2025-2026 but revised the projection to $9 million due to high early returns in the fiscal year as part of the midyear budget process. The City received $2,513,142 in RPPT during this period compared to $1,542,793 in 2025 and $2,593,873 in 2024. Through March 2026, the City has collected $8,585,304 in fiscal year 2025-2026. The report for the Third Quarter of Fiscal Year 2025-2026 (January - March 2026) is provided as Attachment 2.
ATTACHMENTS
1. 2026_06_10 ATT1 - Measures CC & C Status Report Q2 FY26
2. 2026_06_10 ATT2 - Real Property Transfer Tax Status Report Q3 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