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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 2, 2017 <br /> Action Agenda <br /> Item No. 8-h <br /> SUBJECT: Agreement with Flinchum Sales Tax Consulting for Sales Tax Refunds <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Draft Agreement Gary Donaldson, 919-245-2453 <br /> PURPOSE: To enter into an agreement with Flinchum Sales Tax Consulting to determine if the <br /> County is due additional sales tax refunds from the North Carolina Department of Revenue <br /> (NCDOR). <br /> BACKGROUND: Under the North Carolina statutes, cities and counties annually file for sales <br /> tax refunds from the NCDOR for sales taxes paid on all taxable goods and services. <br /> The County's invoices and payments to vendors and contractors include the applicable sales tax <br /> amounts. The County then completes NCDOR forms E536 and E585 annually requesting sales <br /> tax refunds from the NCDOR. <br /> In 2004, the County retained sales tax auditors to review County sales tax reports and was able <br /> to identify additional sales tax revenue due from the NCDOR. Flinchum Sales Tax Consulting <br /> (Flinchum) currently provides these services to several North Carolina counties on a <br /> contingency basis which is based on a percentage of additional sales tax refunds determined to <br /> be due to the County from NCDOR. <br /> The attached Agreement would allow Flinchum to review County records and determine if the <br /> County is due additional sales tax refunds for the period July 1, 2013 through June 30, 2017 <br /> FINANCIAL IMPACT: Flinchum will receive 33% of all additional sales tax refunds collected <br /> and deposited in the County treasury. <br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br /> this agenda item: <br /> • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY <br /> The creation and preservation of infrastructure, policies, programs and funding necessary <br /> for residents to provide shelter, food, clothing and medical care for themselves and their <br /> dependents. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the <br /> Manager to sign this Agreement. <br />