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most notably the warehouse size value -oriented retailers, are beginning to reach saturation. Therefore, it is important that the City direct efforts at recapturing a significant portion of its sales tax revenues through non -retail sources. By working to stabilize and enhance the important non -retail component of local sales tax revenues. the City will be able to reduce its need to generate increased revenues from other sources. As with retail sales taxes. when businesses from outside the Cite are attracted to San Leandro to purchase goods from non -retail establishments, the Cite benefits from increased revenues without increasing the burden on local residents and businesses. Action 3.4: Sales Tax Auditing and Outreach Locally generated sales taxes are an important source of General Fund revenues. Attraction of new taxable sales activities is an important step to take in enhancing the local tax base. however. there are also steps that the City can take to maximize the benefits from existing local retail and non -retail sales activities. In brief, the sales tax collection and allocation system involves local merchants, the State Board of Equalization, and cities and counties. Merchants are responsible for collecting sales taxes due on purchases. Thev then forward the sales taxes to the State Board of Equalization. The State Board of Equalization then allocates the revenues to the appropriate governmental entities. including revenues equal to approximately one percent of taxable sales, which return to the jurisdiction in which the taxable transactions occurred. In this process, there is the potential for the City to collect less than its appropriate share of sales tax revenues. This can occur due to individual merchants under -reporting their taxable sales or mis-allocation of taxable sales that occur in San Leandro to another jurisdiction. There is more potential for confusion in sales tax reporting with establishments engaged in non -retail sales: thus, this action is included under the categon of actions addressing non -retail sales tax issues: however. sales tax auditing and outreach activities will also include retail establishments. Under this program. the Cite of San Leandro will work with its sales tax consultant. to identiffi and address any potential under -repotting or mis-allocation of taxable sales activity. In addition. City_ staff will work with local businesses to increase awareness of the need to correctly report taxable sales to the State Board of Equalization in order to best ensure that the State Board of Equalization allocates all appropriate sales tax revenues to the Cite of San Leandro. Roles and Responsibilities. Economic development staff will take priman responsibilit, for this action. including coordinating auditing activities with the City Finance Department. the City's sales tax consultant, and the State Board of Equalization as necessary. Economic development staff will also be responsible for developing and implementing a merchant outreach and awareness program. Priority.- HIGH 53 61