Title
Administrative Subpoena to GTE Mobilnet of California Limited Partnership, dba Sacramento Valley Limited Partnership, for Business Records Related to the City’s Communications Users Tax Compliance Audit
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FileID
File ID: 2026-00163
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Resolution authorizing the City Attorney to issue a subpoena to GTE MOBILNET OF CALIFORNIA LIMITED PARTNERSHIP, dba Sacramento Valley Limited Partnership, requiring the production of records necessary to audit the business’s compliance with the City’s Utility User Tax ordinance.
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Contact
Contact: Bryan Howard, Interim Finance Manager, (916) 808-4847, bdhoward@cityofsacramento.org;
Ranelle Kawasaki, Program Specialist, (916) 808-1251, rkawasaki@cityofsacramento.org; Finance Department, Revenue Division
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
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Description/Analysis
IssueDetail
Issue Detail: A comprehensive tax compliance audit of GTE Mobilnet of CA Limited Partnership, dba Sacramento Valley Limited Partnership (GTE Mobilnet), a telecommunications provider, has been commissioned to determine whether GTE Mobilnet is compliant with, and has accurately paid, the City’s Utility User Tax (UUT) as required in Sacramento City Code Chapter 3.32. The audit will identify any reporting and payment errors or deficiencies and will provide any necessary solutions to ensure the UUT is properly reported and paid in the future. To conduct a comprehensive and thorough audit, it is necessary that GTE Mobilnet furnish specific business documents and records. GTE Mobilnet has informed the City that they require receipt of an administrative subpoena ordering the production of such records for to them to turn over the business records necessary to complete the tax compliance audit.
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PolicyConsiderations
Policy Considerations: The collection and recovery of tax revenues due to the City is consistent with the City Council’s policy of collecting monies due to the City in order to provide essential City services.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This action is not subject to the California Environmental Quality Act (CEQA) because it does not constitute a “project” as defined in section 15378 of the CEQA Guidelines and is otherwise exempt pursuant to section 15061(b)(3) of CEQA Guidelines (no significant effect on the environment).
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Sustainability
Sustainability: There is no sustainability consideration associated with this report.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The compliance audit will evaluate GTE Mobilnet’s application and collection of the City’s UUT by evaluating their taxing matrix, charges subject to UUT, plans and bundled services subject to UUT, tax exemptions, audit tests and reconciliations, and utilization of any other tax audit practice typical and necessary to determine compliance with the City’s UUT. The UUT compliance audit will ascertain that the taxes remitted to the City were correctly calculated and collected on a sound and consistent basis compliant with the City’s UUT ordinance.
Geocode sampling will also be performed to verify the accuracy of the accounts coded within GTE Mobilnet’s taxing systems by determining that customer accounts are within the City boundaries and assessed the City’s UUT. Tests on customer addresses in potentially vulnerable areas of the City, such as annexed areas, overlapping zip codes with surrounding jurisdictions, adjacent city boundary areas, etc., will be performed to verify GTE Mobilnet’s use of correct jurisdictional designations for customers within the City and in the immediate surrounding areas.
The UUT compliance audit and testing can only be conducted if GTE Mobilnet provides the City with the required business records and customer account information. GTE Mobilnet has indicated that they will not release customer personal identifying information without an administrative subpoena.
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FinancialConsiderations
Financial Considerations: The City will not incur any out-of-pocket costs associated with the audit. The City’s contracted audit consultant, Neumo, fka Avenu Insights and Analystics, will receive a 20% contingency fee on any new revenue realized as a result of this audit.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): None.
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