FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
title
SALES TAX REIMBURSEMENTS FOR CHEMICAL PURCHASES
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
Approve Sole Source Agreements for Tax Consulting and Advocacy Services with Dakessian Law, Ltd. and Equity Recovery Solutions regarding pursuit of refunds for sales tax paid on chemical purchases.
body
BACKGROUND
Orange County Sanitation District (OC San) uses certain chemicals to treat wastewater. In some circumstances, the California Department of Tax and Fee Administration (CDTFA) has determined that the purchase of specific chemicals used to treat wastewater may be exempt from sales tax.
The Board previously approved a Sole Source Agreement with attorney Marty Dakessian, of Dakessian Law, Ltd. & Equity Recovery Solutions (ERS) to perform work on a contingency basis to recover refunds for sales tax paid on chemical purchases.
The Steering Committee and Board of Directors approved the agreements in Closed Session on October 25, 2023. This is the formal approval of the agreements.
RELEVANT STANDARDS
* Ensure that the public's money is wisely spent
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
OC San regularly procures chemicals, equipment, and other capital items that are used during the process of treating wastewater at both treatment plants. OC San currently pays sales and use taxes on the purchase of these goods and consumables.
PROPOSED SOLUTION
Approve the agreements with Dakessian Law, Ltd. and ERS to seek and secure sales/use tax exemptions/refunds on the purchase of chemicals, equipment, and other capital expenditures used during the treatment of wastewater.
PRIOR COMMITTEE/BOARD ACTIONS
October 2023 - Approved Sole Source Agreements for Tax Consulting and Advocacy Services with Dakessian Law, Ltd. and ERS regarding pursuit of refunds f...
Click here for full text