Sales Tax Auditing, Sales Tax Distribution Error Correction, and Sales Tax Reporting Services

The County of Sacramento, California is seeking proposals for sales tax auditing, sales tax distribution error correction, and sales tax reporting services. Sacramento County’s aim is to gain revenue with no net cost to the County. Compensation to a vendor is to be primarily based upon a sharing of new revenue to the County.

Sales tax is one of the major sources of revenue for Sacramento County. Consumers, businesses, and local governments pay sales tax when goods are purchased from businesses. The California Department of Tax and Fee Administration (CDTFA) collects the sales tax from these businesses and allocates the revenue to the State and local governments within the State. In this process, errors occur in the distribution of the local share of sales tax to counties and cities. Correction of these errors may result in increased county revenue.

Sacramento County receives sales tax revenue, either directly or indirectly from several different sources. The County receives as general revenue for the General Fund one cent of the sales tax rate applied to transactions in the Unincorporated Area (Bradley-Burns). The County also receives revenue from statewide Proposition 172 Public Safety sales tax pool and the Realignment sales tax pool. Each of these pools is funded from one-half cent of the statewide sales tax rate.