City of San Antonio - File #: 16-2538

• File #: 16-2538
• Type: Misc - Professional Services Agreements
• In control: City Council A Session
• On agenda: 6/2/2016
• Posting Language: An Ordinance authorizing a professional services agreement for sales and use tax audit services with Sales Tax Assurance LLC in an amount up to 25.0% of any recovered sales and use taxes. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Finance Director]

Date	Ver.	Action By	Action	Result
6/2/2016	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance Department


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT:

Engagement of Professional Consultant to Provide Sales and Use Tax Audit Services


SUMMARY:

This ordinance authorizes the City to enter into a professional service contract with Sales Tax Assurance LLC to provide sales and use tax audit services to the City. Under this engagement, the consultant will review past and present state and City records to determine if:

1. Businesses operating within the City of San Antonio that are subject to city sales and use tax are remitting the appropriate amount to the Texas Comptroller of Public Accounts.
2. Internet sales that are subject to local City of San Antonio sales and use tax are in fact remitting to the Texas Comptroller of Public Accounts.
3. The City of San Antonio is being correctly allocated all city sales and use tax each month from the Texas Comptroller of Public Accounts.
4. The City of San Antonio is correctly identifying and documenting sales and use tax collections.

The Contractor will be required to coordinate with the Texas Comptroller of Public Accounts office to correct appropriate records to ensure the collection of any unrealized sales and use tax revenue to the City.


BACKGROUND INFORMATION:

Texas imposes a state sales tax on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined state and local tax rate of up to 8 1/4% (.0825).

San Antonio's current sales tax rate is 8.250% and is distributed as follows: 1.000% City of San Antonio; 0.125% dedicated to the City of San Antonio Edwards Aquifer Protection and Parks Development and Expansion Venue Projects; 0.125% dedicated to the City of San Antonio Pre-K 4 SA initiative; 0.250% San Antonio ATD (Advanced Transportation Distri...