TO: Honorable Mayor and Members of the City Council
FROM: Paul Young, Finance Director
SUBJECT:
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A Resolution of the City of Red Bluff Authorizing the City Manager to Execute Agreements with the State Board of Equalization (BOE) for Implementation of a Local Transactions and Use Tax
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RECOMMENDED COUNCIL ACTION:
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Approve Resolution No.16-2026 authorizing the City Manager to execute the agreements with the BOE for implementation of a local transactions and use tax.
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SUMMARY:
As a result of the passage of Measure S on the June 02, 2026, Ballot, the BOE has sent several agreements that the City needs to approve. This is because the BOE is the only entity allowed to collect and distribute sales tax
PREVIOUS COUNCIL ACTION:
During its meeting on January 20, 2026, the City Council approved Resolution 01-2026, calling for placing the Street Safety, Maintenance, and Road Tax Citizen Initiative on the June 2, 2026, election.
On June 2, 2026, the electorate voted to approve the implementation of a local transactions and use tax.
DISCUSSION:
The City of Red Bluff certified signatures on a citizen initiative to add a special transaction and use tax (known as “sales tax”) of one percent (1.0%) to be used to repair and improve streets and roads in the City. On January 20, 2026, the City Council directed staff to submit the sales tax initiative to be placed on the June 2, 2026, ballot.
On June 02, 2026, the electorate of the City of Red Bluff passed Measure S approving a new one percent (1.0%) local sales or transactions and use tax (TUT), which increases the TUT, or sales tax, rate from 7.5% to 8.5%. The CDTFA administers and collects the tax for the City and requires administration agreements with local jurisdictions to enact the tax. The agreements are included as Exhibit A and Exhibit B of the proposed resolution authorizing agreements with the CDTFA.
CITY FISCAL IMPACT:
The City of Red Bluff will receive a new revenue source for use on streets. This tax is subject to a “preparatory cost”, and an amount “as is provided by law” for administration costs(Revenue and Taxation Code sections 7272 and 7273), as well as the other sales taxes the city received prior to this new tax.
The City’s revenues were reduced by $37,405 or 0.65% for its Bradley Burns 1% tax and was charged $19,720 or 1.36% for its Measure D .25% tax collections in fiscal year 2024-2025. CDTFA fees are deducted at the state level from amounts collected.
ATTACHMENTS:
1. City Preparatory Agreement Attachment
2. City Administrative Agreement
CITY COUNCIL RESOLUTION NO. 16-2026
A RESOLUTION OF THE RED BLUFF CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION (BOE) FOR IMPLEMENTATION OF A LOCAL TRANSACTION AND USE TAX
WHEREAS, on June 02, 2026, the electorate of the City of Red Bluff passed Measure S, a one-cent transactions and use tax (TUT) (1%); and
WHEREAS, the City of Red Bluff (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use tax; and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible for administering and collecting the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administrative Agreement” prior to implementation of said taxes, and
WHEREAS, the Department requires that the City Council authorize the agreements
NOW, THEREFORE BE IT RESOLVED: by the City Council of the City of Red Bluff that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager who is hereby authorized to execute each agreement.
The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Red Bluff held on July 9, 2026, by the following vote, to wit:
AYES:
NOES:
ABSENT OR NOT VOTING:
DATED: _____________ ______________________
Mayor’s Signature
ATTEST:
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Deputy City Clerk