6.g.
TCEDC Agenda
- Meeting Date:
- 11/19/2025
- Title:
- Approve a professional services agreement with HdL Companies for Sales Tax administration/compliance consulting.
- Submitted For:
- Kristin Edwards
- Submitted By:
- Kristin Edwards, Economic Development
- Department:
- Economic Development
ACTION REQUEST (Brief Summary)
Approve a professional services agreement with HdL Companies for Sales Tax administration/compliance consulting.
BACKGROUND
The Texas City Economic Development Corporation is funded by a portion of the sales tax generated within the City of Texas City. Further, TCEDC is under active Chapter 380 sales tax refund agreements, making it imperative to effectively track sales tax data.
Staff has met with HdL Companies, which offers not only sales tax reporting, but also assistance with sales tax recovery within Texas City.
Per the attached Professional Services proposal, HdL would assist the City and the Economic Development Corporation in several ways:
1. Sales tax reporting and consultation: HdL would provide monthly reporting including the Sales Tax Analysis Report service (STAR Summary), sales tax payment details, year-over-year reporting, special reports by request, and more. The full list of reporting is available on pages 4-5 of the attached.
This information, which HdL would collect from the Comptroller with our authorization, would allow us to correctly process and manage our Chapter 380 agreements, as well as forecast annual revenues. This service carries a cost of $7,200 annually.
2. Sales tax audit and recovery fee: HdL will conduct audits on new and existing businesses to ensure that the City is receiving all sales tax we are owed.
The City would only profit share with HdL when their work identified a taxpayer in need of correction. An audit and recovery fee of 25% will be billed in those situations only, where HdL's work results in sales tax revenue improvements.
3. Economic Development reporting: In addition to complex demographic reporting, HdL can offer us GAP Analysis as well as Void Analysis for Texas City, allowing us to make better decisions in terms of development planning, recruitment strategies and overall market analysis. This would represent a critical and applicable tool as we continue to seek retail development in Texas City. This service carries an additional cost of $4,000 annually, with the full benefits detailed on pages 6 and 7.
Funds for these services are available in the EDC Budget (Fund 801).
Staff has met with HdL Companies, which offers not only sales tax reporting, but also assistance with sales tax recovery within Texas City.
Per the attached Professional Services proposal, HdL would assist the City and the Economic Development Corporation in several ways:
1. Sales tax reporting and consultation: HdL would provide monthly reporting including the Sales Tax Analysis Report service (STAR Summary), sales tax payment details, year-over-year reporting, special reports by request, and more. The full list of reporting is available on pages 4-5 of the attached.
This information, which HdL would collect from the Comptroller with our authorization, would allow us to correctly process and manage our Chapter 380 agreements, as well as forecast annual revenues. This service carries a cost of $7,200 annually.
2. Sales tax audit and recovery fee: HdL will conduct audits on new and existing businesses to ensure that the City is receiving all sales tax we are owed.
The City would only profit share with HdL when their work identified a taxpayer in need of correction. An audit and recovery fee of 25% will be billed in those situations only, where HdL's work results in sales tax revenue improvements.
3. Economic Development reporting: In addition to complex demographic reporting, HdL can offer us GAP Analysis as well as Void Analysis for Texas City, allowing us to make better decisions in terms of development planning, recruitment strategies and overall market analysis. This would represent a critical and applicable tool as we continue to seek retail development in Texas City. This service carries an additional cost of $4,000 annually, with the full benefits detailed on pages 6 and 7.
Funds for these services are available in the EDC Budget (Fund 801).
ANALYSIS
Approve a professional services agreement with HdL Companies for Sales Tax administration/compliance consulting in the amount of $11,200 annually, in addition to audit and recovery fees conditional upon HdL’s audit and recovery investigations.