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01/14/2019 <br />E. Preference. Unless the payor instructs otherwise, and except as otherwise <br />provided in this Agreement, the Department shall give no preference in applying money <br />received for state sales and use taxes, state -administered local sales and use taxes, <br />and district transactions and use taxes owed by a taxpayer, but shall apply moneys <br />collected to the satisfaction of the claims of the State, cities, counties, cities and <br />counties, redevelopment agencies, other districts, and City as their interests appear. <br />F. Security. The Department agrees that any security which it hereafter <br />requires to be furnished by taxpayers under the State Sales and Use Tax Law will be <br />upon such terms that it also will be available for the payment of the claims of City for <br />district taxes owing to it as its interest appears. The Department shall not be required to <br />change the terms of any security now held by it, and City shall not participate in any <br />security now held by the Department. <br />G. Records of the Department. <br />When requested by resolution of the legislative body of the City under section <br />7056 of the Revenue and Taxation Code, the Department agrees to permit authorized <br />personnel of the City to examine the records of the Department, including the name, <br />address, and account number of each seller holding a seller's permit with a registered <br />business location in the City, pertaining to the ascertainment of transactions and use <br />taxes collected for the City. Information obtained by the City from examination of the <br />Department's records shall be used by the City only for purposes related to the <br />collection of transactions and use taxes by the Department pursuant to this Agreement. <br />H. Annexation. City agrees that the Department shall not be required to give <br />effect to an annexation, for the purpose of collecting, allocating, and distributing District <br />transactions and use taxes, earlier than the first day of the calendar quarter which <br />commences not less than two months after notice to the Department. The notice shall <br />include the name of the county or counties annexed to the extended City boundary. In <br />the event the City shall annex an area, the boundaries of which are not coterminous <br />with a county or counties, the notice shall include a description of the area annexed and <br />two maps of the City showing the area annexed and the location address of the property <br />ATTY/RESO.0003/CC RESO AUTHORIZING CITY MANAGER TO EXECUTE AGREEMENTS WITH CDTFA RESO. NO. 15729 <br />REV: 01-03-19 DZ MUFF NO. 305 <br />Page 6 of 10 <br />