City to monitor business‑licensing concierge and study sales‑tax remittance gaps; state agency enforcements discussed

Council members on April 28 asked staff to monitor a recently introduced concierge function to support business licensing and to prepare a study of the fiscal impact of locally observed under‑reporting of sales taxes by cash businesses.

Christine, the city manager, and finance staff described a hybrid business‑licensing model the city is operating in partnership with a vendor (HDL) and a new in‑person concierge role at City Hall intended to help walk‑in applicants. Staff said the concierge service is early and staff will return with an update on metrics and impacts in September 2025.

On sales‑tax remittance, staff described the limits of local authority and the role of the California Department of Tax and Fee Administration (CDTFA). Staff said the CDTFA conducts enforcement but does not share detailed audit results with the city; CDTFA will act if the city provides names and receipts showing non‑remittance. As Interim Finance staff summarized: “If we want to bring the evidence to them and provide them with the name of a business, a receipt proving that they're not collecting the tax, at that point, they might get involved. But other than that, they're not willing to get involved, and they don't give us the outcome of their research either.”

Council asked staff to prepare an assessment of the probable fiscal impact of suspected under‑remittance and to present options for public education and outreach to the business community; staff suggested a September reporting date so the city can include relevant data in the budget conversation. Staff also flagged the need to weigh outreach costs versus likely recoverable revenue and suggested the city could pursue state legislative discussions or additional contacts with CDTFA if the data showed material losses.

No formal enforcement action was initiated by the council at the workshop.