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CC - CONSENT ITEM: Receipt and Filing of Measure CC, Measure C, and Measure CL Sales Tax Status Reports (FY 2025-2026, Third Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, Fourth Quarter), as Approved by the Finance Advisory Committee.
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Meeting Date: September 28, 2026
Contact Person/Dept.: Erin Spragan/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 (09/24/2026); (Email) Meetings and Agendas - Fiscal and Budget Issues (09/24/2026)
Departmental Approval: Erin Spragan, Chief Financial Officer (09/21/2026)
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RECOMMENDATION
Staff recommends the City Council receive and file the attached Measure CC, Measure C, and Measure CL Sales Tax Status Reports (FY 2025-2026, Third Quarter) and Real Property Transfer Tax Status Report (FY 2025-2026, Fourth Quarter), as approved by the Finance Advisory Committee (FAC) on August 12, 2026.
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.
In August 2025, Culver City residents voted in support of Measure CL, a quarter-cent transactions and use tax to maintain City Services funded through the City’s General Fund. Measure CL went into effect in January 2026 and will remain in effect until ended by voters.
The FAC Fiscal Year 2026-2027 Schedule of Activities/Work Plan includes the review of Measure C, CC, and CL 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 2025-2026 (January 1 - March 31, 2026) or the first quarter of the calendar year.
The City’s Measure CC and Measure C actual tax receipts increased by 2.8% and 3.3% respectively, from the same period in 2025. Measure CL went into effect in January 2026 and therefore does not have a past period for comparison in 2025. Some business groups increased from the same period in 2025 such as “building and construction” and “business and industry.” Others, such as “food and drugs” and autos and transportation”, declined and “general consumer goods” stayed flat. The “restaurant and hotels” increase was driven by expanded casual dining and higher menu prices. The “autos and transportation” group declined as a result of fewer new vehicle sales while “fuel and service stations” increased due to the spike in fuel prices. In comparison, sales tax for Los Angeles County increased 4.2% over the same period and the Southern California region was up 4.0%. The report for the Third Quarter of Fiscal Year 2025-2026 (January 1 - March 31, 2026) 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 2026-2027 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 2025-2026 (April 1 - June 30, 2026) or the second quarter of the calendar year.
RPTT revenue ended the year with high returns as a result of a large commercial property sale. Considering low revenues in prior years and RPTT’s unpredictability as a revenue source, staff initially projected annual revenues of $6 million in the Adopted Budget for Fiscal Year 2025-2026 but revised the projection to $9 million due to higher-than-expected early returns in the fiscal year as part of the midyear budget process. The City received $5,756,528 in RPPT during this period compared to $6,845,183 in 2025 and $970,246 in 2024. Prior to audit adjustments, the City collected $14,341,831 in fiscal year 2025-2026, exceeding the adjusted projection by $5.3 million. The report for the Fourth Quarter of Fiscal Year 2025-2026 (April 1 - June 30, 2026) is provided as Attachment 2.
On August 12, 2026, the FAC reviewed and approved the attached reports on Measure CC, Measure C, Measure CL, 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 2016-2017 through the third quarter of Fiscal Year 2025-2026 (January 1, 2017 - March 31, 2026). 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. Measure CL revenue began collection in the third quarter of Fiscal Year 2025-2026 and is also not included in the attachment.
FISCAL ANALYSIS
The receipt and filing of these reports do not create a fiscal impact.
ATTACHMENTS
1. 2026-09-28 ATT1 - Measure C, CC & CL Status Report Q3 FY26.pdf
2. 2026-09-28 ATT2 - Real Property Transfer Tax Status Report Q4 FY26.pdf
3. 2026-09-28 ATT3 - 10-Year Sales Tax Trend CY17 Q1 - CY26 Q1.pdf
recommended action
MOTION(S)
That the City Council:
Receive and file the Measure CC, C, CL, and Real Property Transfer Tax Status Reports.