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Report regarding resolutions authorizing the award of a contract to Hinderliter de Llamas & Associates for providing Business License, Commercial Parking, Transient Occupancy Tax, and Sales Tax Services and authorizing examination of Sales and Use Tax Records from the California Department of Tax and Fee Administration by City Staff and Hinderliter de Llamas & Associates (Greg Henry, Financial Services Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council of the City of South San Francisco (City):
1. Adopt a resolution awarding a contract to Hinderliter de Llamas & Associates (HdL) to provide administrative, audit, and compliance services for Business License Tax (BLT), Commercial Parking Tax, Transient Occupancy Tax (TOT), and Sales Tax, and authorizing the City Manager to execute the agreement on behalf of the City;
2. Adopt a resolution authorizing examination of Sales and Use Tax Records from the California Department of Tax and Fee Administration by City Staff and HdL.
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BACKGROUND/DISCUSSION
The City of South San Francisco contracts with external consultants for Sales and Use Tax services, consistent with common practice among municipalities in California and San Mateo County. These services include revenue forecasting, compliance audits, and business assistance to ensure accurate tax collection and reporting. By leveraging external expertise, the City enhances its ability to monitor tax trends, recover misallocated revenue, and provide businesses with guidance on tax requirements.
Additionally, such consultants maintain strong working relationships with the California Department of Tax and Fee Administration (CDTFA), the state agency responsible for administering sales and use tax. Their direct access to CDTFA data and staff allows for timely identification of tax allocation errors, efficient resolution of discrepancies, and proactive support for businesses navigating state tax regulations. This collaboration...
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