City of San Antonio - File #: 21-4203

• File #: 21-4203
• Type: Purchase of Services
• In control: City Council A Session
• On agenda: 6/17/2021
• Posting Language: Ordinance approving a contract with HdL Companies to provide sales and use tax audit recovery services. HdL Companies will retain 22.5% of any recoveries for a period of two years and commissions attributable to any one taxpayer during any contract year shall be capped at $100,000.00. Funding for this contract is available in the FY 2021 General Fund Budget and funding for future years is contingent upon City Council approval of the annual budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

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

SUMMARY:

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

1. All businesses operating within the City of San Antonio that are subject to city sales and use tax are in fact remitting the appropriate amount to the Texas Comptroller of Public Accounts (TCPA).
2. All internet sales that are subject to local City of San Antonio sales and use tax are in fact remitting to the TCPA.
3. The City of San Antonio is being correctly allocated all city sales and use tax due each month from the TCPA.

The Contractor will be required to coordinate with the TCPA's 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 8.250% (.0825).

San Antonio's current sales tax rate is 8.250% and is presently distributed as follows: 1.000% City of San Antonio; 0.125% dedicated to the City of San Antonio Ready to Work Initiative; 0.125% dedicated to the City of San Antonio Pre-K 4 SA initiative; 0.250% San Antonio ATD (Advanced Transportation District); 0.500% San Antonio MTA (Metropolitan Transit Authority); and 6.250% State of Texas.

The Finance Department desires to be proactive and identify potential additional revenue otherwise due to the City as a result of any sales and use tax omissio...