TITLE
Consider a memorandum/resolution authorizing the award of a professional services agreement with MuniServices, LLC to conduct a sales tax compliance review.
SUMMARY
DATE: June 20, 2017
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: MuniServices Sales Tax Compliance Review Agreement
BACKGROUND AND FINDINGS:
The General Fund is balanced on a three-legged stool: one leg represents ad valorem taxes, the second leg is sales tax, and the third leg comprises other revenue sources. Sales tax revenue represents 29% of General Fund revenues in FY 2017. Due to the heavy reliance on sales tax to enable the City to provide the necessary services to its citizens, it is imperative that the City ensures all sales tax revenues collected within the City of Killeen are properly remitted and allocated.
MuniServices’s sales tax compliance review service is designed to assist the City with economic forecasting and in preserving and enhancing its sales and use tax revenues by detecting, documenting, and correcting sales tax misallocations thereby producing previously unrealized revenue for the City of Killeen while giving the City a more accurate sales tax base upon which to forecast its revenue.
In providing the sales tax compliance review, MuniServices shall:
· Meet with City of Killeen’s finance staff to review service objectives, scope, procedures, coordination of effort, work plan schedule, public relations, and logistical matters.
· Establish an appropriate liaison with the City’s coordinator and define logical checkpoints for reviewing progress.
· Perform a review of the City’s businesses’ sales/use tax remittances in an effort to ensure proper application of local sales/use tax law and achieve past and/or prospective compliance, as applicable.
· On behalf of the City, may also provide additional documentation to the Comptroller’s office to request its assistance in gaining compliance from taxpayers as need...
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