COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
Trinna Ware, Division Manager - Finance
SUBJECT:Title
Approve Consulting Agreement from Albert Holler & Associates to Provide Sales Tax Desk Review Audits (Jill Olsen)
Body
FUNDING SOURCE:
General Fund
PURPOSE:
To approve the consulting agreement from Albert Holler & Associates to provide sales tax desk review audits.
BACKGROUND:
To help ensure businesses are complying with the City tax code and reporting and submitting the proper amounts, staff is requesting outside auditing services.
Albert Holler & Associates has a 27-year background in sales tax auditing. The firm provides services to over twenty (20) municipalities in Arizona. The audit report used by the consultant is the one used by the Arizona Department of Revenue. Tax laws and appeal rights are explained at the audit closing and taxpayers will be given all information necessary to report correctly in the future. Confidentiality of all taxpayer business affairs is strictly maintained.
The cost for Fiscal Year (FY) 2018/19 is approximately $16,000 with anticipated additional funds not-to-exceed $60,000 for FY 2019/20. The contract for FY 2019/20 will allow for potential added audits and desk audit training for internal staff.
COMMUNITY IMPACT:
Assurances to the community that businesses are properly licensed, aware of tax code, and filing returns accurately and timely to maximize sales tax revenues. Sales tax revenue supports general fund services that include public safety, public works, recreation, and general government.
FISCAL IMPACT:
Funds are available in the FY 2018/19 General Fund from savings in debt service fees. An additional $60,000 will be requested in FY 2019/20 budget to complete the audits.
There is anticipated additional revenue of approximately $130,000 annually from corrections in tax filing. These increased revenues will continue as businesses file correctly in future years.
ATTACHMENTS:
Consulting Agreement
SUGGESTED MOTION: Recommended Action
I move to approve the Consulting Agreement with Albert Holler & Associates for auditing services in FY 2018/19 in the amount of up to $16,000 and an amount not-to-exceed $60,000 in FY 2019/20.