Title
Consider and take action on a resolution authorizing three year agreement with Texas City Services for Sales Tax Misallocation Services (Director of Finance)
Background:
Approval of this item will allow the City to enter into a three year agreement with two one-year renewals with Texas City Services for Sales Tax Misallocation Services.
Texas City Services, LLC (TCS) will provide comprehensive Sales Tax Misallocation Review and Recovery Services for the City of League City. Based on the winning proposal submitted for RFP 25-043, TCS delivers a four-phase approach to identify, correct, and recover misallocated local sales and use taxes.
Services include:
-Quarterly identification of suspect businesses using automated datasets, canvassing, and passive investigation.
-Review and cross-analysis of Texas Comptroller permit data, confidentiality reports, city listings, county appraisal district records, and relevant state agency business listings.
-Delivery of a Quarterly Review Plan identifying new and ongoing suspect businesses and recommended action steps.
-Direct business outreach, education, and voluntary compliance facilitation to correct reporting errors.
-Review and preparation of amended business tax filings when necessary, as TCS is an approved Texas Comptroller tax preparer.
-Monitoring of corrected accounts to ensure continued compliance.
-Tax Base Analysis prepared in Year 1 and updated upon request.
The City previously used Avenue Insights for this service, but due to the amount recovered in recent years, an RFP for these services was issued on 9/4/2025 with three respondents. Texas City Services LLC was selected as the proposal that provided the best overall value to the City. Compensation is based on a 20% contingency fee applied only to revenue actually recovered by the City and only after recoveries have been received by League City. This fee applies to eight quarters after the “Date of Correction” and all legally eligible prior quarter...
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