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Council adopts resolutions to implement Measure TC; staff to sign CDTFA and HDL agreements
Summary
Following March’s passage of Measure TC, the council authorized agreements with the state tax agency and a consulting/audit firm (HDL) to begin tax implementation work; staff said businesses should expect collection to begin around Oct. 1 under state timing rules.
After voters approved Measure TC in March, the Temple City Council on April 7 adopted resolutions and a services agreement to put the 3/4‑cent transactions-and-use tax into the state’s collection system.
City Manager Brian Cook told the council that state law allows the California Department of Tax and Fee Administration (CDTFA) to assess a one‑time setup charge to implement local transactions‑and‑use taxes and to deduct a statutory collection cost on an ongoing basis. “Approximately October 1st of this year the tax should be started to be collected,” Cook said, explaining the post‑election timing for CDTFA’s implementation and taxpayer notification.
Staff also recommended and the council approved a master services agreement with HDL (the city’s tax audit and revenue‑analysis contractor) to monitor collections and identify underpayments. Staff said HDL’s work will underpin revenue forecasts and ongoing compliance checks.
Council members asked how much CDTFA would deduct for administration. Robert Coup, the city’s tax attorney on hand, said the state charges a minimal statutory fee to cover collection costs and that the deduction is routine and applied to existing local taxes as well as to Measure TC.
With no public comments on the item, the council adopted three resolutions: one authorizing the city manager to execute the CDTFA agreements, one authorizing examination of transaction and use tax records, and one approving the HDL master services agreement (resolutions numbered in packet). The roll‑call vote on the package was unanimous.
Staff said they will return with timing details and begin vendor onboarding and outreach to local businesses as the CDTFA schedule is finalized.
