DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott, CPA, Deputy Chief Financial Officer
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT: Contract Renewal with Sales Tax Assurance, Dba HdL Companies
SUMMARY:
This ordinance authorizes exercising an option to renew the contract with Sales Tax Assurance LLC, dba HdL Companies (HdL), for sales and use tax audit services for the City, extending the term of the contract to June 1, 2021.
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 8.25%
San Antonio's current sales tax rate is 8.25% and is distributed as follows:
6.250% State of Texas;
1.000% City of San Antonio General Fund;
0.125% San Antonio Edwards Aquifer Protection and Parks Development
and Expansion Venue Projects;
0.125% San Antonio Pre-K 4 SA initiative;
0.250% San Antonio ATD (Advanced Transportation District); and
0.500% San Antonio MTA (Metropolitan Transit Authority).
In June 2016, City Council authorized the agreement for Sales Tax Assurance, now HdL, to provide sales and use tax audit recovery services for the City for an initial three year term through June 1, 2019, with an option to renew and extend the Contract for one additional two-year term through Ordinance No. 2016-06-02-0402.
Under the contract, HdL gathers data from the Texas Comptroller of Public Accounts (TCPA) analyzing it using their proprietary software to identify businesses which appear to be underreporting sales tax. HdL then works with the TCPA and businesses to correct any errors found. Typical recoveries are due to taxpayers reporting in the wrong local jurisdiction. In addition HdL provides the City internal research reports and monthly sales tax analysis reports.
Over the cours...
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