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Business Cooperation Program an additional component of the Use Tax Audit . MuniServices will <br />also provide its well-established Business Cooperation Program (BCP) to the County. Our team will <br />identify and seek cooperation from local businesses to self accrue their use tax to the County in <br />addition to working with contractors on major construction projects in the County. MuniServices <br />pioneered the BCP service generating significant sales and use tax revenues and is actively working <br />with multiple clients on major construction projects. <br />If the City desires to have MuniServices to operate as the "Backstop" audit service, basic rules will <br />be established to specify when MuniServices could submit sales and use tax errors that would be <br />eligible for our contingency fee compensation. A list of accounts for investigation can be provided <br />for pre -authorization by the City to avoid any duplication of effort with the City's in-house program. <br />Examples of the rules would include the following examples with specific rules established as part <br />of the contract: <br />1. In order for MuniServices to be credited with the identification and correction of a <br />misallocation, the business must have been located in the city for a minimum of 6 months <br />and we would have to submit the error to the SBOE at least one quarter prior to the city. <br />2. For Quarter Distribution Report CQDR) reporting errors for businesses that the city had <br />historically been receiving local tax aIIocations, MuniServices would provide the city a one <br />quarter "head start". This would mean that each quarter when the new quarterly payment <br />data is received from the SBOE, MuniServices would not be allowed to submit inquiries until <br />the following quarter giving the city the first opportunity to identify and report any <br />suspected errors. <br />MuniServices' Deliverables <br />• MuniServices will provide quarterly reports identifying each taxpayer reporting error <br />individually submitted to the SBE on the City's behalf, including business name, address, <br />telephone number, California sales tax permit number, individuals contacted, date(s) of <br />contact, nature of business, reason(s) for error, recommended corrective procedure and, if <br />available, estimated sales and use tax revenue that should be forthcoming to the City. <br />• MuniServices will provide status reports on sales tax inquiries filed on behalf of the City <br />with the SBE. These status reports will include a list of accounts filed with the SBE including <br />taxpayer name and address, date of knowledge (I)OK), sales tax permit number, current <br />status of accounts including estimate of amount of local tax due the City, and additional <br />information as requested by the City. <br />• MuniServices will conduct, at the request of the City, sales and use tax technical seminars <br />and sales and use tax audit training. <br />Confidentiality Provisions <br />Through a Resolution that will need to be executed by City Council, MuniServices will be authorized <br />to examine transaction tax, sales tax, and use tax records of the SBE provided to City pursuant to <br />contract under the Bradley -Burns Uniform Sales and Use Tax Law and California Revenue & <br />Taxation Code applicable to transactions and use taxes. If the City adopts a new transaction tax or <br />taxes after the effective date of the agreement entered into between the City and MuniServices the <br />intent is for the work to include that tax or taxes. <br />ATTY/AGR12015.1011MUNISERVICE LLC <br />ATTY/AGR.2020.268/MuniServices LLC (Page 28 of 35) <br />