Accounts and revenue enhancement data are entered automatically when you run the Revenue Enhancement process! There is no need to have extra data entry staff on hand or to demand overtime from your overworked employees to enter new accounts found from Revenue Enhancement.
SERVICE SCOPE
Progressive Solutions® Revenue Enhancement Services are designed to maximize revenue in these areas:
- Business License Tax
- Transient Occupancy Tax
- Sales / Use Tax
- Property Tax
- Utility Tax
- Documentary Transfer Tax
- Franchise Fees
COST REDUCTIONS
Implementation of our service will produce results! Our offering reduces City costs and increases revenue as described below. PSI Revenue Enhancement Services provide support staff with these features:
- Tight integration with PSI's LicenseTrack™ Business Licensing Software.
- All follow-up correspondence is automated and tracked.
- Invoices may be entered once into the business licensing system.
- Invoices may be efficiently tracked.
- Use of the internet for identification, audit and payment efficiencies.
- PSI's fee for Revenue Enhancement Services is 12.5% of newly identified realized benefits; compared with the fee of 20% to 25% charged by traditional audit firms.
- More corrections completed. (Staff training will result in more corrections done at the 12.5% rate and also more corrections from new sources of misallocated situs sales tax, misallocated situs use tax, and misallocated non-situs sales and use tax.)
- Proactively managing sales and use tax revenue streams will help prevent "audit discoveries" from other jurisdictions.
- Implementation costs may be paid from realized benefits. Such costs are exempt from the calculation of contingent fees. For example, support fees can be deducted from recoveries prior to the calculation of the applicable contingent fee:
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Example:
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PSI
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Others
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Savings
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Revenue Enhancement Recovery
Less service fees paid
Contingent Basis
Contingent fee percentage
Contingent fee
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$170,000
($10,000)
$160,000
12.5%
$20,000
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$170,000
($10,000)
$160,000
25%
$40,000
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$20,000
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INCREASED REVENUE
- By using available data such as AB63 & AB990 data and performing cross checks, business activity becomes transparent and auditable by the city.
- Working with targeted City based businesses on a technical basis can increase the situs allocation of both sales and use tax.
For example: an auto auction house may yield minimal, if any revenue to the City. A special program can be implemented that will capture significant revenue from this activity. It could yield $40,000 to the City in sales and use tax compared to $1,000 in business license tax. Future special events can be setup in a proactive manner.
- Another important focus will be the self-accrual of use tax by businesses.
- Working with other government agencies, other cities, counties and transit districts can result in increased situs allocations.
- Frequently "non cooperative" taxpayers are located or do business in multiple locations. Forming a coalition of impacted jurisdictions can be an effective way of working with such taxpayers.
SERVICE OBJECTIVES
Progressive Solutions® will provide automation tools to:
- Increase revenue & reduce costs.
- Measure and manage audit activities.
- Proactively identify opportunities to maximize general revenue through city audit activities.
- Better manage general revenues.
SERVICE METHODOLOGY
Progressive Solutions® will collaboratively work with City staff to:
- Utilize AB63, AB990 and other data to identify and flag non compliant businesses.
- Identify and pursue misallocations.
- Proactively identify and implement opportunities to ensure that businesses maximize allocation of sales and use tax to the City.
- Provide State Board of Equalization with misallocation corrections and follow-through to ensure the corrections are made.
- Institute processes and procedures to measure the effectiveness of the SBE, the taxpayers, and audit firms.
- Provide educational assistance as needed to help the City maximize its sales and use tax revenues.
- Provide the means to invoice non compliant business within the business licensing software.
- Provide reporting that creates snap-shots of non compliant businesses discovery and payments.
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