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Non-Financial Agreement with the California Franchise Tax Board for Exchange of <br />Business License Tax Data <br />November 19, 2024 <br />Page 2 <br />4 <br />6 <br />7 <br />2 <br />The Agreement with the FTB is good for three years at a time. The current agreement is <br />set to expire December 31, 2024, and it is now time for renewal. Under the terms of the <br />Agreement, Santa Ana will be required to send data to the FTB annually between April <br />and July for each tax year that the Agreement is in place. The data includes ownership <br />name, address information, Employer ID number, and business start date. Each <br />December, the FTB will send the City similar information from their database, as well as <br />information on taxpayers who file business related income tax returns. Under the terms <br />of this Agreement, the data exchange will continue through December 2027. Neither the <br />FTB nor the City of Santa Ana would be reimbursed for the cost of providing data and <br />neither party will be charged for receiving data from the other agency. Should the City <br />wish to discontinue participating in the data exchange program, the Agreement may be <br />terminated with thirty days (30) written notice to the FTB. <br />As of November 1, 2024, due to the Exchange program, approximately 750 new <br />business licenses have been registered for a total of $630,000 in Business License Tax <br />revenues. Staff recommends the adoption of a Resolution authorizing a reciprocal <br />agreement with the California Franchise Tax Board for the continued exchange of <br />business data. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />EXHIBIT(S) <br />1. Resolution <br />2. FTB Agreement <br />Submitted By: Kathryn Downs, FMSA Executive Director <br />Approved By: Alvaro Nuñez, City Manager <br />  <br />  <br />City Council 27 – 2 11/19/2024