City Business Tax Program - Data Exchange

Effective January 2009, and as the result of the enactment of Senate Bill 1146 (Cedillo) (Chapter 345, Statutes of 2008), FTB and participating cities began exchanging data through a reciprocal agreement. There is no charge to either party.

City data helps identify self-employed individuals who are not filing required individual and business entity income tax returns, and state tax data helps identify businesses that may have a local business tax filing requirement.

Law references are - Revenue and Taxation Code Sections: 19542, 19542.1, 19542.3,19551, 19551.1, 19551.5, 19552, and California Civil Code 1798.29.

Types of data exchanged

Cities provide FTB: FTB provides cities:
  • Business and owner's name
  • Business or residence address
  • FEIN or SSN
  • North American Industry Classification Code or Standard Industry Classification Code
  • Taxpayer name
  • Taxpayer address
  • Taxpayer SSN or FEIN
  • Entity type
  • Principal Business Activity (PBA) Code from Form 540 - California Resident Income Tax Return

Data exchange via Secure Web Internet File Transfer (SWIFT)

Due dates

  • Cities must send us their data by June 30 each year in which the reciprocal agreement is in effect.
  • FTB will send state tax data in December each year to participating cities while the reciprocal agreement is in effect and after the city submits the Safeguard Questionnaire. FTB data will cover the prior tax year. For example, we will send tax year 2010 data in December 2011.

Sending city data

  1. Log in to your SWIFT account.
  2. Prepare the city business tax data per the record layout specifications (FTB 909).
  3. Transfer the information to the acceptable file format (.txt), ASCII fixed length format.
  4. Transmit the file to us via SWIFT using the "ToFTB" mailbox.
  5. Retrieve your receipt using the "FromFTB" mailbox.

Retrieving FTB data

  1. Log in to your SWIFT account.
  2. Open "FromFTB" mailbox.
  3. Select file and save to designated folder.

References

Safeguarding FTB data

Since the data we provide to city tax officials is confidential tax information, any improper usage or disclosure of this information carries certain civil and criminal liabilities. Provisions are made within the agreements to ensure:

  • Taxpayer data is safeguarded. The city must complete and submit a Safeguard Questionnaire. The questionnaire must be on file before FTB can send the data (R&TC 19542.
  • Each city employee who has access to FTB data must complete City Business Tax Disclosure Training annually
  • Only city employees named in the confidentiality statement have access to the data. This statement acknowledges that named employees understand the consequences of improper disclosure.
  • The data will only be used for the administration of tax within the city.
  • The city maintains the security and confidentiality of the data. Destruction of the data is mandated after 3 years.
  • The city is aware of the right by the FTB disclosure staff to conduct safeguard reviews. This review includes inspection of the confidentiality and the security of the data.