TITLE
The Mayor and City Council shall discuss and possibly take action to approve a contract renewal with Albert Holler and Associates for Transaction Privilege Tax (TPT) services in an amount not to exceed $36,000 and funding will be from General Fund, Financial Services, Professional and Occupational (10011313-53320). Discussion and Action.
AGENDA ITEM DESCRIPTION
On August 2, 2011, the City of Maricopa (City) approved our initial contract with Albert Holler and Associates for Transaction Privilege Tax (TPT) services. The contract term was for three (3) years with an option of two (2) one (1) year renewals. On July 7, 2014, the City received confirmation from Albert Holler and Associates to renewal the contract at the same annual fee of $36,000.
The City's TPT is collected by the State of Arizona's Department of Revenue (DOR) and remitted to the City the following month. The DOR has an audit arm charged with discovering and recovering unpaid TPT revenues; however due to state budget cuts and agency consolidations over the last decade or so, the DOR has found itself short of auditors to effectively collect the unpaid taxes. As a result, many program cities, similar to Maricopa, have elected to engage outside audit firms to provide the expertise and staff necessary to discover and collect unpaid taxes due the government.
In addition to the collection of due but unremitted taxes, the tax auditors are able to provide education to our citizens and business people on the TPT laws and regulations to ensure that they remain in compliance.
This item will be presented by Brian A. Ritschel, Finance Director.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council approve a contract renewal with Albert Holler and Associates for Transaction Privilege Tax (TPT) services in an amount not to exceed $36,000 and funding will be from General Fund, Financial Services, Professional and Occupational (10011313-53320).