To approve an expenditure for Sales Tax Audit Consulting Services for a one (1) year contract with five (5) automatic one-year renewals in the estimated annual amount of $400,000 from MuniServices, LLC for the Budget Department; and authorizing the City Manager to execute all necessary documents. Approved

Award of this contract with MuniServices, LLC would provide Sales Tax Audit Review services in order to detect, document and correct sales tax misallocations thereby producing previously unrealized revenue for the City.  It is recommended that we engage with MuniServices, LLC to assist in this effort.  Under the terms of the contract, once discovery of the misappropriated sales tax is documented and paid to the City, a 30% contingency fee is due to MuniServices.  The contract term is for one (1) year initial term, with five (5) automatic one (1) year renewals.  

This contract for sales tax auditing is recommended for the following reasons:

1. Unrealized sales tax revenues to the City of Plano are received from the correction of taxpayer reporting errors discovered.

2. Ensures proper application of local sales tax law and achieves past and/or prospective compliance, as applicable.

3. Assists businesses, as necessary, in the preparation and filing of amended returns and/or reallocation requests with the Comptroller’s Office in order to gain compliance.

Not approving the contract would result in the City of Plano not realizing sales tax revenue owed the City.

The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(4). (City of Plano Internal Contract No. 2020-0477-XR)

This item approves a contract with MuniServices, LLC to provide Sales Tax Audit Review services.  Under the terms of the contract, once discovery of the misappropriated sales tax revenue is documented and paid to the City, a 30% continegency fee is due to MuniServices.  The term of the contract is a one-year initial term, with five (5) automatic one-year renewals.  Based on previous years, it is estimated that $400,000 will be paid out per fiscal year.  Funding for this item is included in the Proposed 2020-21 General Fund Budget and future funding will be made available in the 2021-22 through 2025-26 General Fund Budgets and will be made within approved budget appropriations.

Approval of this contract for Sales Tax Audit services will support the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.