From
Marty Wieder, Director of Economic Development
Title
Professional Services Contract for Sales/Use Tax Compliance Review and Recovery Services from TexasCityServices, LLC. (up to $150,000 annually) through an interlocal agreement with the City of Dallas for three years with the option to renew for two additional one year periods totaling $750,000 if all extensions are exercised; and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City's obligation during the renewal terms
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
This Professional Services Contract is to assist the City with the detection, documentation and correction of errors and omissions related to sales/use tax collections and remissions for goods and services sold and consumed within the City of Grand Prairie. In particular it will:
· Detect and validate qualified business activities within the City from which the City is not receiving sales/use tax revenue.
· Assist businesses, as required, in filing returns and making payments for all open tax periods.
· Assist businesses, as necessary, in correcting registration information for taxes that are being incorrectly reported to another jurisdiction.
· Provide documentation to the state to secure the transfer of funds to the City that was reported in error to another jurisdiction. The City will authorize access to sales tax information from the Texas Comptroller of Public accounts.
· Provide status reporting at agreed upon times to keep the City aware of the sales/use tax compliance review initiatives progress.
If awarded, TexasCityService, LLC. will collect a 24% contingent fee for sales tax increases for any previous year corrections enjoyed by Grand Prairie from a non-compliant business; a 24% co...
Click here for full text