REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Jane Chung, Assistant to the City Manager
Subject:
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Receive and file response to August 6, 2024, Council Member Item: Taxpayer Transparency - Evaluation of City Tax-Sharing
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Statement of Issue:
???At the August 6, 2024, Council Meeting, Council Member McKeon directed the City Manager and Finance Director to report back to Council with a written report and oral presentation on questions regarding the City Tax-Sharing. ??
Financial Impact:
No funds are required.
Recommended Action:
recommendation
Receive and file response to August 6, 2024, Councilmember Item: Taxpayer Transparency - Evaluation of City Tax-Sharing
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Alternative Action(s):
Do not approve the recommended action and direct staff accordingly
Analysis:
??At the August 6, 2024, Council Meeting, Council Member McKeon directed the City Manager and Finance Director to report back to Council with a written report and oral presentation with the answer to the following questions:
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1. What tax-sharing or incentives were provided to Amazon for locating its warehouse in north Huntington Beach. Additionally, how much is/was the "sharing" or City tax/revenues foregone by the City (i.e., the difference between what the City would have received in the aggregate over the years at the regular rate of tax, minus what the City actually has received in the aggregate over the years at a discounted rate of tax) as a result of these incentives.
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?The City did not provide any concession or incentive to any Amazon business. However, the City may provide economic incentives in the form of sales-tax sharing agreements, through negotiated contracts, to incentivize a business to locate or remain in the City and encourage the sale of goods within City boundaries.
State law (AB 562) defines an "...
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