Sales Tax Audit Professional Service Contract
September 1, 2026
Sales Tax Audit Professional Service Contract
Fiscal Year 2026/27 Proposed Budget includes $52.4 million in projected sales and use tax.
The California Department of Tax and Fee Administration (CDTFA) determines all sales and use tax revenues remitted to local governments.
Hinderliter de Llamas and Associates (HdL) analyzes sales and use tax data to ensure allocations are correct for the City.
State law requires City Council authorization for specialty auditing firms, such as HdL, to verify sale and use tax information as the information is proprietary.
HdL works with the CDTFA to recover misallocated sales and use tax and has recovered an additional $13.25 million in misallocated sales and use tax over the prior 10 years.
Fee is a fixed monthly fee and a 16.5% commission on all misallocated revenue that is remitted to the City.
Questions?