To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
First Amendment to the Service Agreement with Hinderliter, de Llamas & Associates for Sales Tax Audit Services
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the First Amendment (Attachment A) with Hinderliter, de Llamas & Associates (HdL) for sales tax audit services, to expire June 30, 2023; and
2. Authorize the County Administrative Officer to sign the attached agreement, any amendments or extensions.
Body
SOURCE OF FUNDING:
General Fund
DISCUSSION:
The county receives sales tax on goods purchased within the unincorporated area of the county. Occasionally, sales tax that should have been recorded to the county is incorrectly allocated to a different taxing jurisdiction, which causes a loss of sales tax. Common "point of sale" errors include transposition errors causing miscalculations, erroneous consolidation of multiple outlets, misreporting a "point of sale" location, delays in reporting new outlets, misidentifying transactions as a use tax rather than a sales tax, and erroneous fund transfers and adjustments, which are usually related to businesses with multiple retail locations.
In order for the county to effectively and efficiently identify and recover potential lost sales tax, as described above, staff recommends extending and expanding the current service agreement with HdL. This First amendment extends the original expiration date from the end of fiscal year 2019-20 to 2022-23 and includes review and recovery of Measure Z sales tax. HdL is a highly qualified tax reporting and auditing firm, providing services to over 400 agencies in seven states. Inasmuch, HdL is experienced in assisting local jurisdictions with reviewing and auditing sales tax information to correct any "point of sale" distribution errors, thereby generating previously unrealized sales tax income for that entity.
The county has ...
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