HomeMy WebLinkAboutItem 09 - Sales Tax Streamlining StudyMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGE% ,f
MEETING DATE: AUGUST 17, 2004
SUBJECT: SALES TAX STREAMLINING STUDY
RECOMMENDATION:
City Council to receive a report from Kasner and Associates regarding results of the sales
tax streamlining impact study.
BACKGROUND:
On March 23, 2004 the Council authorized the City to enter into an agreement with Kasner
and Associates to perform two studies related to sales tax receipts. The first study relates
to an analysis of sales tax streamlining legislation impacts. This legislation has been
discussed at both the State and Federal levels; and, if approved, would change the situs
(the jurisdiction that collects the local tax) for retail sales from the location of the sales
transaction to the location of the delivery point of goods shipped to the customer.
The intent of the Kasner study is to determine detailed estimates of possible losses of
sales tax revenues to the City of Grapevine, should the streamlining legislation be
approved by the State of Texas. The study is now complete and staff has asked
representatives from Kasner and Associates to present the results of their findings to the
City Council.
In summary, if legislation is approved as now proposed, with no wording to mitigate the
negative impacts on the City, Kasner estimates that the City could lose sales tax receipts
in a range from $1.79 million to $2.3 million annually. It is the intent of staff to present this
information to our legislators to demonstrate the negative impacts on our City in order to
discourage passage of the legislation.
The second study being performed by Kasner is a review of the State sales and use tax
filings of all businesses located in Grapevine to determine if the amounts filed with the
State have been properly calculated and remitted. If amounts are due the City, the firm will
then assist the City in recovering underpayments. The firm would receive 33% of
recoveries received. This second study is not yet finished.
No action is required on the part of the Council for this agenda item. Both staff and Kasner
will be happy to respond to questions.
WAG/cjc
H:AGMKasner8-17-04
August 11, 2004 (1:49PM)
Tax Office
3072 Mustang Drive
Grapevine, TX 76051
817/251-5633
METRO 817/481-1242
FAX 817/421-9400
Tecognized for ExceEl,,,e
eine~� o2�e
Independent School District
July 26, 2004
I, Colette Sooter, Tax Assessor -Collector for the City of Grapevine, Texas,
submit to the City Council the 2004 Appraisal Roll as sworn to by John
Marshall, Chief Appraiser of the Tarrant County Appraisal District. Attached,
herewith, are the appraisal roll valuation summary sheets with hard copies of
the appraisal roll available for inspection at 3072 Mustang Drive, Grapevine,
Texas 76051.
Total Appraised and Assessed Value $5,865,826,852
Less Ag Deferral & Exemptions - 970,868,470
Net Taxable $4,894,958,382
New Construction $ 181,143,699
(Included in net taxable)
I certify an anticipated collection rate of 100% for the tax year 2004. This
total percentage includes current taxes, delinquent taxes, rollback taxes,
penalties and interest.
ess my hand
orn and subscribed to me this 26th day of July 2004.
No ary Public's Signature County State
LAURA OWENS
MY COMMISSION EXPIRES
j ApdI23, 2006
July 25 2004 Certified Roll -Grapevine
Property Value Summary for Tax Year 2004 ( FYE 2005 )
Total Appraised and Assessed Value 5,865,826,852
Less Ag Deferral & Exemptions (970,868,470)
Net Taxable 4,894,958,382
Less TIF Increment (356,820,257)
4,538,138,125
Plus Protested Value 95,660,522
Plus Values Not Included on Roll 254,594,156
2004 Taxable Value for Rollback 4,888,392,803
Less New Construction (
181,143,699 )
2004 Taxable Value for Effective Tax Rate 4,707,249,104
IN. E
T B a e
S/U Tax Analysis -
Effects of Proposed
Streamlined S/U
Tax Legislation
Prepared & Presented by
Kasner & Associates LLC
100000000004 1 Mrd••! 00004 1 1 40001 1 11,0001
TALE OF CONrE'NTS
Executive Summary............................................1-5
- Project Findings
- Project Scope & Limitations
- Overview of Proposed Tax Law Changes
- Examples of Proposed Tax Law Changes
- Project Procedures
Graphic Analysis of Estimated Loss ............................6-8
- Estimated Maximum & Minimum Revenue Loss of Top 100
- Estimated Revenue Loss of Top 100
- Estimated Loss by Product
Graphic Analysis of Grapevine Population............ 10
- 2003 Dollars & Taxpayers Reviewed
- Comparison of Taxable Sales 1 St, 2nd & 3rd Qtr 2003
Appendices:
A. Streamlined S/U Tax Agreement Sourcing Section Excerpts
B. Top 100 Detail
B-1. Top 100 Summary by Product/Service
C. Alternative Ratios
D. Taxable Sales 1St, 2nd & 3rd Qtr 2003 . E
Kasner & E. Research/Reference Sources IN
T a
Associates LLC
i t 4 i{ 0004 t 4 000000900909904 i t 040404 q %.;'•i 4 4 %lee t
EXE'CUrIVE SUMMARY
Project Findings
A minimum loss of 11% to 14% of future sales/use tax remittances, or $1.8mm to $2.3mm
annually, is estimated assuming Grapevine's sales/use tax is sourced based upon destination
rather than origination. This estimate only encompasses Grapevine's Top 100 businesses
remitting sales/use tax in 2003 and does not include any Non -Top 100 businesses. If it is
assumed that the loss in the Top 100 is constant within Grapevine's Non -Top 100 business
community, the loss of future sales/use tax remittances increases to between $2.4mm to
$3.1 mm annually.
The Top 100 business types incurring the greatest loss are:
Business Type Min. Loss Max. Loss
Business to Business (B2B*) $.90mm $1.24mm
Contractor $.17mm $ .18mm
Retail $.71 mm $ .83mm
The Top 100 businesses included in this review of the 1,611 total businesses located in
Grapevine represent $10.75mm of the $16.12mm, or 67% of the sales/use tax remitted by
businesses to Grapevine via the Texas Comptroller.
* B2B type businesses are sales/use taxpayers who focus on sales to other businesses as opposed to the general public
Kasner & �4t
Associates LLC T s A Q
Page 1
EXECU77VE SUMMARY
Project Scope & Limitations
The sole purpose of the analysis is to approximate any loss to be expected assuming a
change in situs of City sales/use tax to destination. These estimated losses do not include any
estimated gains Grapevine would receive for shipments from out -of -Grapevine to Grapevine
residences and/or businesses.
All alternative reporting ratios are based upon Grapevine's provided data and assumptions
of businesses' operations and structures. Limitations or variations in such data or
assumptions could result in changes to the loss projections.
This review does not result in any opinion, attestation, or other form of assurance with
respect to Grapevine's or its businesses' transactional tax reporting. The procedures
employed by this review do not constitute an examination or a review per General Accepted
Auditing Standards. Kasner & Associates LLC is not a public accounting firm.
Kasner &
ASSOciateS LLC Page 2
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4000
EXEC: U77VE SUMMARY
Overview of Proposed Tax Law Changes
Under the Proposed Law, city tax situs will change from where the order is placed to where the item is
delivered. Accordingly Grapevine would no longer receive tax monies from in -city -limit retailers who
deliver to end-users outside the city limits. Out -of -city limit vendors who delivery to in -city -limit end-
users would collect Grapevine's city tax under the proposed law.
Proposed Section 310: General Sourcing Rules
A. The retail sale, excluding lease or rental, of a product shall be sourced as follows:
1. When the product is received by the purchaser at a business location of the seller, the
sale is sourced to that business location.
2. When the product is not received by the purchaser at a business location of the seller,
the sale is sourced to the location where receipt by the purchaser (or the purchaser's donee, designated
as such by the purchaser) occurs, including the location indicated by instructions for delivery to the
purchaser (or donee), known to the seller.
Note: Donee is not defined in the proposed Rules, however, it likely means a recipient other than the purchaser
Texas Tax Code § 321.203. Consummation of Sale
(a) A sale of a taxable item occurs within the municipality in which the sale is consummated. A sale is
consummated as provided by this section regardless of the place where transfer of title or possession occurs.
(b) If a retailer has only one place of business in this state, all of the retailer's retail sales of tangible
personal property are consummated at that place of business except as provided by Subsection (e).
Kasner & .,associates LLC ;�INE.
Page 3
100666609094
Examples of Proposed Tax Law Effects
Sale Description
Order placed to Grapevine Retailer, customer accepts
item in Grapevine
Order placed to Grapevine Retailer, Retailer ships item
from Grapevine to outside of Grapevine
Order placed to Grapevine Retailer, Retailer ships item
from out -of -Grapevine warehouse to outside of Grapevine
Service performed by Grapevine Retailer
Telecom./Waste Disposal/Electricity/Utilities
Order placed to Grapevine Retailer, Retailer ships item
from out -of -Texas to out -of -Grapevine
EXECLMVE 49Ul`!MA17Y
Current Situs
Grapevine
Grapevine
Grapevine or
Warehouse*
Grapevine* *
Destination
Grapevine or
Destination* * *
Proposed Situs
Grapevine
Destination
Destination
Destination
Destination
Destination
* If the warehouse is a place of business with three or more taxable orders
** July 2004 the situs of services changes to "where the service is performed or otherwise delivered." However, a Comptroller
moratorium is currently effective pending further law interpretation.
*** If Retailer has nexus in Destination City
CRAP �INE.
Kasner & Associates LLC �a
Page 4 T B A t'
•••
1 1 1 • • • • • • • • • • • • • • • • • • • • • 1 490994 ••t r 1
EXECUrIYE SUMMARY
Project Procedures
The following procedures were employed during the course of this analysis:
- "Confidentiality Report" provided by the city pursuant to HB 1088 of the 2003 Texas Legislature
detailing 2003 Grapevine city sales/use tax remittances
- The city summarized a test of monthly tax collections by Taxpayer Name, sorted the test period
remittances in descending order, projected an annual remittance amount and identified the projected
Grapevine Top 100 taxpayers
- The Comptroller assigned Standard Industry Classification (SIC) code which provides a business
description of each business' operations were used to place each business in a category type
- Kasner & Associates & Grapevine representative researched/compiled Alternative Reporting Ratios
for each business
- Kasner and Associates developed minimum and maximum estimated tax loss based upon
Grapevine's estimated shipments outside of its boundaries and the Alternative Reporting Ratios
- Analyze estimates and population of Grapevine, surrounding cities, North Central Texas and the
State of Texas to develop this analysis
Kasner &IE„
ASSOC1ateS LLC
Page 5
1
••••••••••••••• f 004 4! A 096999994 q 4 tome t 4%►! •l
Analysis of Estimated
Loss
Estimated Ma.. & Min.
Revenue Loss —Top 100
Estimated Min. Loss Estimated Max. Loss
$8.96mm
Effect
Total Tax Reviewed $10.75 million
SOURCE.' APPENDIX B
Kasner &
Associates LLC
Page 6
Total Tax Reviewed $10.75 m illlon
�WEO
TA # S "
a 1 4 4 4 q 00 0 0 0 40 0 4p 4p i 4 4 4 4 4 M 4 4 i i% i%% 4 4 4 a t 4 4% 4 4 t•% 4
Analysis of Estimated
Loss
Estimated Average
Revenue Loss — Top 100
Total Tax Reviewed $10.75 million
Kasner & � IN.sAssociates LLC Page
• • • • • • • • • • • • • • • 4 4 t 4 A 4 A A 4 A t t t %, • • • • • % 4 4 • r t t 4 % t
Estimated Loss by Prod
Category- Top 100
$1.07mm
Contractor
Analysis of Estimated
Loss
Retail
Services
SOURCE.' APPENDIX B
Kasner &
Associates LLC
Page 8
.SRA%,.AI*4
TB
2003 Dollars & Taxpayers
Top 100 Reviewed vs. All Taxpayer
2003 Collections -
.SC 16- 12 millinn
■ Not Reviewed ■ Reviewed
Kasner &
Analysis of Grapevine
Population
2003 Taxpayers
1,611
IN Reviewed ■ Not Reviewed
SOURCE: APPENDIX E
Associates LLC
Page 9
I.(;, VINEr
'Comparison of Taxable \
Sales Is'. 2nd, & 3rd Qtr 2003
Taxable Sales
As a Percentage
Kasner &
70
60
50
40
30
20
10
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Associates LLC
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Page 10
Analysis of Grapevine
Taxable Sales
■ Grapevine
■ Dallas MSAI
■ Texas
1 1i'e�Qll
oe
sQl�
SSoui?cm APPE'ND/X D
&*IN,
C. T g
APPE'NDICE'S
Appendix A
Kasner &
IiRA VINE
Associates LLC
Section 310: GENERAL SOURCING RULES
A. The retail sale, excluding lease or rental, of a product shall be sourced as follows:
1. When the product is received by the purchaser at a business location of the seller, the
sale is sourced to that business location.
2. When the product is not received by the purchaser at a business location of the seller,
the sale is sourced to the location where receipt by the purchaser (or the purchaser's 30
donee, designated as such by the purchaser) occurs, including the location indicated
by instructions for delivery to the purchaser (or donee), known to the seller.
3. When subsections (A)(1) and (A)(2) do not apply, the sale is sourced to the location
indicated by an address for the purchaser that is available from the business records of
the seller that are maintained in the ordinary course of the seller's business when use
of this address does not constitute bad faith.
4. When subsections (A)(1), (A)(2), and (A)(3) do not apply, the sale is sourced to the
location indicated by an address for the purchaser obtained during the consummation
of the sale, including the address of a purchaser's payment instrument, if no other
address is available, when use of this address does not constitute bad faith.
1. For a lease or rental that requires recurring periodic payments, the first periodic
payment is sourced the same as a retail sale in accordance with the provisions of
subsection (A). Periodic payments made subsequent to the first payment are sourced
to the primary property location for each period covered by the payment. The primary
property location shall be as indicated by an address for the property provided by the
lessee that is available to the lessor from its records maintained in the ordinary course
of business, when use of this address does not constitute bad faith. The property
location shall not be altered by intermittent use at different locations, such as use of
business property that accompanies employees on business trips and service calls.
5. When none of the previous rules of subsections (A)(1), (A)(2), (A)(3), or (A)(4)
apply, including the circumstance in which the seller is without sufficient information
to apply the previous rules, then the location will be determined by the address from
which tangible personal property was shipped, from which the digital good or the
-1
computer software delivered electronically was first available for transmission by the
seller, or from which the service was provided (disregarding for these purposes any
location that merely provided the digital transfer of the product sold).
B. The lease or rental of tangible personal property, other than property identified in
i
subsection (C) or subsection (D), shall be sourced as follows:
1. For a lease or rental that requires recurring periodic payments, the first periodic
payment is sourced the same as a retail sale in accordance with the provisions of
subsection (A). Periodic payments made subsequent to the first payment are sourced
to the primary property location for each period covered by the payment. The primary
property location shall be as indicated by an address for the property provided by the
lessee that is available to the lessor from its records maintained in the ordinary course
of business, when use of this address does not constitute bad faith. The property
location shall not be altered by intermittent use at different locations, such as use of
business property that accompanies employees on business trips and service calls.
2. For a lease or rental that does not require recurring periodic payments, the payment is
sourced the same as a retail sale in accordance with the provisions of subsection (A).
3. This subsection does not affect the imposition or computation of sales or use tax on
leases or rentals based on a lump sum or accelerated basis, or on the acquisition of
property for lease.
C. The lease or rental of motor vehicles, trailers, semi -trailers, or aircraft that do not
qualify as transportation equipment, as defined in subsection (D), shall be sourced as
follows:
1. For a lease or rental that requires recurring periodic payments, each periodic payment
is sourced to the primary property location. The primary property location shall be as
indicated by an address for the property provided by the lessee that is available to the
lessor from its records maintained in the ordinary course of business, when use of this
address does not constitute bad faith. This location shall not be altered by intermittent
use at different locations.
2. For a lease or rental that does not require recurring periodic payments, the payment is
sourced the same as a retail sale in accordance with the provisions of subsection (A).
3. This subsection does not affect the imposition or computation of sales or use tax on
leases or rentals based on a lump sum or accelerated basis, or on the acquisition of
property for lease.
D. The retail sale, including lease or rental, of transportation equipment shall be sourced
the same as a retail sale in accordance with the provisions of subsection (A),
notwithstanding the exclusion of lease or rental in subsection (A). "Transportation
equipment" means any of the following:
1. Locomotives and railcars that are utilized for the carriage of persons or property in
interstate commerce.
2. Trucks and truck -tractors with a Gross Vehicle Weight Rating (GVWR) of 10,001
pounds or greater, trailers, semi -trailers, or passenger buses that are:
a. Registered through the International Registration Plan; and
b. Operated under authority of a carrier authorized and certificated by the U.S.
Department of Transportation or another federal authority to engage in the
carriage of persons or property in interstate commerce.
3. Aircraft that are operated by air carriers authorized and certificated by the U.S.
Department of Transportation or another federal or a foreign authority to engage in
the carriage of persons or property in interstate or foreign commerce.
4. Containers designed for use on and component parts attached or secured on the items
set forth in subsections (D)(1) through (D)(3).
Section 311: GENERAL SOURCING DEFINITIONS
For the purposes of Section 310, subsection (A), the terms "receive" and "receipt" mean:
A. Taking possession of tangible personal property,
B. Making first use of services, or
C. Taking possession or making first use of digital goods, whichever comes first.
The terms "receive" and "receipt" do not include possession by a shipping company on
behalf of the purchaser.
Section 312: MULTIPLE POINTS OF USE
Notwithstanding the provisions of Section 310, a business purchaser that is not a holder
of a direct pay permit that knows at the time of its purchase of a digital good, computer
software delivered electronically, or a service that the digital good, computer software
delivered electronically, or service will be concurrently available for use in more than one
jurisdiction shall deliver to the seller in conjunction with its purchase a form disclosing
this fact ("Multiple Points of Use or MPU" Exemption Form).
A. Upon receipt of the MPU Exemption Form, the seller is relieved of all obligation to
collect, pay, or remit the applicable tax and the purchaser shall be obligated to collect,
pay, or remit the applicable tax on a direct pay basis.
B. A purchaser delivering the MPU Exemption Form may use any reasonable, but
consistent and uniform, method of apportionment that is supported by the purchaser's
business records as they exist at the time of the consummation of the sale.
C. The MPU Exemption Form will remain in effect for all future sales by the seller to the
purchaser (except as to the subsequent sale's specific apportionment that is governed by
the principle of subsection (B) and the facts existing at the time of the sale) until it is
revoked in writing.
i D. A holder of a direct pay permit shall not be required to deliver a MPU Exemption
Form to the seller. A direct pay permit holder shall follow the provisions of subsection
(B) in apportioning the tax due on a digital good or a service that will be concurrently
available for use in more than one jurisdiction.
Section 313: DIRECT MAIL SOURCING
A. Notwithstanding Section 310, a purchaser of direct mail that is not a holder of a direct
pay permit shall provide to the seller in conjunction with the purchase either a Direct
Mail Form or information to show the jurisdictions to which the direct mail is delivered
i to recipients.
1. Upon receipt of the Direct Mail Form, the seller is relieved of all obligations to
collect, pay, or remit the applicable tax and the purchaser is obligated to pay or remit
the applicable tax on a direct pay basis. A Direct Mail Form shall remain in effect for
future sales of direct mail by the seller to the purchaser until it is revoked in
writing.
2. Upon receipt of information from the purchaser showing the jurisdictions to which
the direct mail is delivered to recipients, the seller shall collect the tax according to
the delivery information provided by the purchaser. In the absence of bad faith, the
seller is relieved of any further obligation to collect tax on any transaction where the
seller has collected tax pursuant to the delivery information provided by the
purchaser.
B. If the purchaser of direct mail does not have a direct pay permit and does not provide
the seller with either a Direct Mail Form or delivery information, as required by
subsection (A) of this section, the seller shall collect the tax according to Section 310,
subsection (A)(5). Nothing in this paragraph shall limit a purchaser's obligation for sales
or use tax to any state to which the direct mail is delivered.
C. If a purchaser of direct mail provides the seller with documentation of direct pay
authority, the purchaser shall not be required to provide a Direct Mail Form or delivery
information to the seller.
Section 314: TELECOMMUNICATION SOURCING RULE
A. Except for the defined telecommunication services in subsection (C), the sale of
telecommunication service sold on a call -by -call basis shall be sourced to (i) each level
of taxing jurisdiction where the call originates and terminates in that jurisdiction or (ii)
each level of taxing jurisdiction where the call either originates or terminates and in
which the service address is also located.
B. Except for the defined telecommunication services in subsection (C), a sale of
telecommunications services sold on a basis other than a call -by -call basis, is sourced to
the customer's place of primary use.
C. The sale of the following telecommunication services shall be sourced to each level of
taxing jurisdiction as follows:
1. A sale of mobile telecommunications services other than air -to -ground radiotelephone
service and prepaid calling service, is sourced to the customer's place of primary use
as required by the Mobile Telecommunications Sourcing Act.
2. A sale of post-paid calling service is sourced to the origination point of the
telecommunications signal as first identified by either (i) the seller's
telecommunications system, or (ii) information received by the seller from its service
provider, where the system used to transport such signals is not that of the seller.
3. A sale of prepaid calling service is sourced in accordance with Section 310. Provided
however, in the case of a sale of mobile telecommunications service that is a prepaid
telecommunications service, the rule provided in Section 310, subsection (A)(5) shall
include as an option the location associated with the mobile telephone number.
4. A sale of a private communication service is sourced as follows:
a. Service for a separate charge related to a customer channel termination point is
sourced to each level of jurisdiction in which such customer channel termination
point is located.
b. Service where all customer termination points are located entirely within one
jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the
customer channel termination points are located.
c. Service for segments of a channel between two customer channel termination points
located in different jurisdictions and which segment of channel are separately charged
is sourced fifty percent in each level of jurisdiction in which the customer channel
termination points are located.
d. Service for segments of a channel located in more than one jurisdiction or levels of
jurisdiction and which segments are not separately billed is sourced in each
jurisdiction based on the percentage determined by dividing the number of customer
channel termination points in such jurisdiction by the total number of customer
channel termination points.
Section 315: TELECOMMUNICATION SOURCING DEFINITIONS
For the purpose of Section 314, the following definitions apply:
A. Air -to -Ground Radiotelephone service means a radio service, as that term is defined
1 in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio
telecommunications service for hire to subscribers in aircraft.
B. "Call -by -call Basis" means any method of charging for telecommunications services
where the price is measured by individual calls.
C. "Communications Channel" means a physical or virtual path of communications over
which signals are transmitted between or among customer channel termination points.
D. "Customer" means the person or entity that contracts with the seller of
telecommunications services. If the end user of telecommunications services is not the
contracting party, the end user of the telecommunications service is the customer of the
telecommunication service, but this sentence only applies for the purpose of sourcing
sales of telecommunications services under Section 314. "Customer" does not include a
reseller of telecommunications service or for mobile telecommunications service of a
serving carrier under an agreement to serve the customer outside the home service
provider's licensed service area.
E. "Customer Channel Termination Point" means the location where the customer either
inputs or receives the communications.
F. "End user" means the person who utilizes the telecommunication service. In the case
of an entity, "end user" means the individual who utilizes the service on behalf of the
entity.
G. "Home service provider" means the same as that term is defined in Section 124(5) of
Public Law 106-252 (Mobile Telecommunications Sourcing Act).
H. "Mobile telecommunications service" means the same as that term is defined in
Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
I. Place of primary use means the street address representative of where the customer's
use of the telecommunications service primarily occurs, which must be the residential
street address or the primary business street address of the customer. In the case of
mobile telecommunications services, "place of primary use" must be within the licensed
service area of the home service provider.
J. "Post-paid calling service" means the telecommunications service obtained by making
a payment on a call -by -call basis either through the use of a credit card or payment
mechanism such as a bank card, travel card, credit card, or debit card, or by charge made
to a telephone number which is not associated with the origination or termination of the
telecommunications service. A post-paid calling service includes a telecommunications
service that would be a prepaid calling service except it is not exclusively a
telecommunication service.
K. "Prepaid calling service" means the right to access exclusively telecommunications
services, which must be paid for in advance and which enables the origination of calls
using an access number or authorization code, whether manually or electronically dialed,
and that is sold in predetermined units or dollars of which the number declines with use
in a known amount.
L. "Private communication service" means a telecommunication service that entitles the
customer to exclusive or priority use of a communications channel or group of channels
between or among termination points, regardless of the manner in which such channel or
channels are connected, and includes switching capacity, extension lines, stations, and
any other associated services that are provided in connection with the use of such
channel or channels.
M. "Service address" means:
1. The location of the telecommunications equipment to which a customer's call is
charged and from which the call originates or terminates, regardless of where the call
is billed or paid.
2. If the location in subsection (M)(1) is not known, service address means the
origination point of the signal of the telecommunications services first identified by
either the seller's telecommunications system or in information received by the seller
from its service provider, where the system used to transport such signals is not that
of the seller.
3. If the location in subsection (M)(1) and subsection (M)(2) are not known, the service
address means the location of the customer's place of primary use.
APPENDICES
Appendix B
Kasner &
ASSUCiateS LLC
ArT 8
City of Grapevine
Sales Tax Loss Analysis
Top 100 Taxpayers
Col. C Col. 0 Col, E
Col. F
Col. G
Col. H Col. I
CoU
Col. K Col. L
Col. M
Col. N Col. 0
Col. P Col. Q
Business Ci
SIC ty Assigned
City Assigned
Ratio
Minimum
Maximum Minimum Amount
Maximum Amount
Average Amount of Minimum Amount of
Maximum Amount Avera" Amount of
Cate(to Category Export %
Remaining %
Tax Amount
Ratio
Remaining
Ratio
-
Remaining
8g1j2_ Remaining (Col. J
Col. 0)
Remaining
Remaining (Col. K -
Col. 0)
Tax Remaining Tax Lost (Col. G -
(Col. G -Col. P) Col. M)
of Tax Loss (Col. L. Tax Lost (Col, 0 + Col
Col. 0) P)12
Medical
Texas Taxpayer
95%
B28 Su lies
5%
353,828.67
0.35%
Ratio
O�35%
5.00%
$1,228.18
$17,691.43
$9,459.81 $336,137.24
$352,600.49 $344,368.86
Printed
Texas Taxpayer
13213 products 95%
5%
264,700.51
Ratio 0.35%
0.35%
5.0,0% $918.81
$13,235.03
$7,076,92 $251,465.48
$263,781.70 $257,623.59
Paper and
Texas Taxpayer
B2B janitorial 90%
10%
148,164.06
Ratio 0.35%
0.35%
1U0% $514.30
$14,816.41
$7,665,35 $133,347.65
$147,649.76 $140,498.71
Medical
Texas Taxpayer
B213 Supplies 95%
5%
141,642.35
Ratio U5%
0.35%
5.00% $491.66
$7,082.12
$3,786.89 $134,560.23
$141,150.69 $137,855.46
Office
20% to Adjoining
13213 Supplies 40%
60%
78,17172
City Population 9T75%
60.00%
97.75% $46,903.03
$76,41129
$61,657.161 $1,760.43
$31,268,69 $16,514.56
Business
B213 equipment 0%
100%
71,269.88
No Change 100.00%
100.00%
100.00% $71,269.88
$71,269.88
$71,269.88 $0.00
$0.00 $0.00
Restaurant
B213 supplies 0%
100%
59,278,32
Texas Retail Ratio 0.68%
0.68%
100.00% $402.21
$59,278.32
$29,840.26 $0.00
$58,876.11 $29,438.067
Wholesale
B28 Durable 0%
1%
56,883.59
Adjoining City
Population 11.26%
11.26%
100-00% $6,405.09
$56,883.59
$31,644.34 $0.00
$50,478.50 $25,239.25
Business
B2B sftwre and 0%
100%
50,561.35
No Change 100,00%
100.00%
100.00% $50,561.35
$50,561.35
$50,561.35 $0,00
$0.00 $0.00
13213 Steel siding 99%
1%
43,998.03
Contractor Ratio 0A8%
0.18%
1.00% $78.98
$439.98
$259.48 $43,558.05
$43,919.05 $43,738.55
Solid waste
B2B managemen 0%
100%
41,993.51
No Change 100.00%
100.00%
100.00% $41,993.51
$41,993.51
$41,99151 $0.00
$0.00 $0.00
Transportati
Texas Taxpayer
B2B on 0%
100%
39,949.98
Ratio U5%
035%
100.00% $138.67
$39,949.98
$20,044.33 $0.00
$39,811.31 $19,905.65
20% to Adjoining
99%
13213 Electronics
1%
37,200.82
97.75%
City Population
1.00%
97.75 % $372.01
$36,363.06
$18,367.53 $83776
$36,828.81 $18,833.29
Wholesale
Texas Taxpayer
B23 Durable 0%
100%
36,399.20
Ratio 035%
0.35%
1013.00% $126.35
$36,399.20
$18,262.77 $0.00
$36,272.85 $18,136.43
Wholesale
Texas Taxpayer
B28 Nondurable 0%
100%
35,264.91
Ratio 0.35%
0.35%
100.00% $122.41.
$35,264.91
$17,693.66 $0.00
$35,142.50 $17,571.25
Total 18213
$ 1,459,306.90
$ 221,626.43
$ 557,640.06
$ 389,583.24 $ 901,666.85
$ 1,237,780.47 $ 1,069,723.66
Commercial
97%
3%
N. Central Texas 0.76%
0.76%
3.00%
Contractor pipe sale
52,924-87
Ratio
$401.05
$1,587.75
$994.40 $51,337,12
$52,523.82 $51,930-47
Commercial
N. Central Texas
99%
Contractor appliances
1%
51,393.64
Ratio 0.76%
0.76%
1-00% $389.44
$513.94
$451.69 $50,879.70
$51,004.20 $50,941-95
Contractor Lumber 99%
1%
37,934.43
N. Central Texas
Ratio 0.76%
0.76%
1.00% $287.45
$379.34
$333.40 $37,555.091
$37,646.98 $37,601.03
Concrete
0%
Contractor Products
1%
33,971.17
0,18%
Contractor Ratio
0.18%
1.00%
$50.98
$339.71
$200.35 $33,631.46
$33,910.19 $33,770.82
Total
Contractor
$ 176,224.11
$ 1,138.93
$ 2,820.74
$ 1,979.83 $ 173,403.37
$ 175,085.18 $ 174,244.28
Lease IT services 0%
100%
48,642.56
No Change 100.00%
100,00%
100.00% $48,642.56
$48,642.56
$48,642.56 $0.00
$0.00 $0.00
Voice and
Lease video tech. 0%
100%
158,638.44
No Change 100.00%
100.00%
100.00% $158,638.44
$158,638.44
$158,638.44 $0.00
$0.001 $0.00
Network and
Lease routing 0%
100%
147,824.40
No Chang 100,00%
100.00%
100.00% $147,824.40
$147,824.40
$147,824.40 $0.00
$0.00 $0.00
Telecom
Lease equipment 0%
100%
70,726.11
No Change 100.00%
100.00%
100.00% $70,726.11
$70,726.11
$70,726.11 $0.00
$0.00 $0,00
Telecom
Lease qui a t 0%
100%
61,374.41
No Change 100.00%
100.00%
100.00% $61,374.41
$61,374.41
$61,374.41 $0.00
$0.00 $0.00
Business
Lease and IT 0%
100%100.00%
Change 100-00%
100.00%
100.00% $56,203.75
$56,203.75
$56,203.751 $0.00
$0.00 $0.00
Software
lNo
0%
Lease and I 1
100%
1
42,174.76 INC
100.00%
Change
100.00%
100.00%
$42,174.76
$42,174.76
$42,174.761 $0.001
$0.00 $0.00
City of Grapevine
Sales Tax LossAnalysis
Too 100 Taxoavers
cit AW .d CitV Assigned Ratio Minimum MaximumMinimum Amount Maximum Amount Average Amount of Minimum Amount of Maximum Amount Average Amount of
Business SIC t�. OR Remaining % Remaining RA92- Rgii2- Remining (Col. K' Tax Remaining Tax Lost (Col, G - of Tax Loss (Col. L- Tax Lost (Col. 0 + Go]
Category Category Tax Amount EAI!2 Remaining Remaining cot c> COL 0) (Col. G -Col. Pi Col. M) Col. G) P)12
0%
100%
100.00%
100,00%
100.00%
Logistics
Lease
software
41,370.47
No Change
$41,370-47
$41,370.47
$41,370.471 $0.00
$0.00
$0.00
0%
100%
100.00%
100.00%
100.00 %
Lease
Telecom
37,374.47
No Change
1
$37,374.47
$37,374.47
$37,374.471 $0.00
$0.00
$0.00
Lease
Rental Of
Electronic
0%
100%
144,096.79
No Change
100.00%
100.00%
100.00%
$144,096.79
$144,096.79
$144,096.79 $0.00
$0,00
$0.00
Lease
Customer
service
0%
100%
53,689.03
No Change
100.00%
100,00%
100.00%
$53,689.03
$53,689.03
$53,689.03 $0.00
$0.00
$0.00
ea
Lease
"a
Machinery &
Equipment
0%
100%
34,282.10
No Change
100.00%
100.00%
100.00 %
$34,282.10
$34,282.10
$34,282.10 $0.00
$0.00
$0.00
Total
Leases
$ 896,397.28
.$
896,397.28
$ 896,397.28
$ 896,397.28 $
$
$
Restaurant
Restaurant
0%
100%
101,522.57
No Chane
100,00%
100.00%
100.00%
$101,522.571
$101,522.57
$101,522.57 $0.001
$0.00
$0.00
Restaurant
Restaurant
0%
100%
92,101.50
No Change
100,00%
100.00%
100.00%
$92,101.50
$92,101.50
$92,101.50 $0.00
$0.00
$0.00
Restaurant
Restaurant
Restaurant
0%
100%
70,802.72
No Change
100.00%
100,00%
100-00%
$70.802.72
$70,80Z72
$70,802.72 $0.00
$0.001
$0.00
Restaurant
Restaurant
Food/Bever
age
0%
100%
70,243.33
No Change
100.00%
1 100,00%
100,00%
$70,243.33
$70,243.33
$70,243.33 $0.00
$0.00
$0.00
Restaurant
Restaurant
Restaurant
0%
100%
68,388.23
No Change
100.00%
1 100.00%
100.00%
$68,388.23
$68,388.23
$68,388.23 $0.00
$0.00
$000
Restaurant
FoodlBever
age
0%
100%
67,601.82
No Change
100.00%
100.00%
10000. %
$67,601.82
$67,601.82
$67,601.82 $0,00
$0-00
$0.00
aslau'an'
Food/Bever
age
0%
100%
65,86Z 16
No Change
100.00%
100.00%
100.00%
$65,862.16
$65,862.16
$65,862.16 $0.00
$0.00
$0.00
t
Restaurant
t
Restaurant
0%
100%
55,866.36
No Change
100.00%
100.00%
100.00%
$55,866.36
$55,866.36
$55,866,36 $0.00
$0,00
$0.00
Restaurant
Restaurant
0%
100%
46,018�63
No Change
100.00%
100=%
100.00%
$46,018.63
$46,018.63
$46,01863 $0.00
$0.00
$0.00
ant",
Restaurant
0%
100%
42,453.04
No Change
100.00%
100.00%
100.00%
$42,453.04
$42,453.04
$42,453-04 $0.00
$0.00
$0.00
Restaurant
lRestaurant
0%
1 100%
41,546.86
No Change
100.00%
100,00%
100.00%
$41,546.86.
$41,546.86
$41,546.86 $0.00
$000
$0.00
Restaurant
Restaurant
0%
100%
35,545.88
No Change
100,00%
100.00%
100.00%
$35,545.88
$35,645.88
$35,545.88 $0.00
$0.00
$0.00
Restaurant
Eating Place
0%
100%
34,229.40
No Change
100.00%
100.00%
100.00%
$34,229.40
$34,229.40
$34,229.40 $0.00
$0.00
$0.00
Total
Restaurant
$ 792,182.60
$ 792,182.50
$ 792,182.50
$ 792,182.50 $ -
$
$
Retail
Sporting
goods
0%
100%
471,781.08
No Change
100.00%
100-00%
100.00%
$471,781.08
$471,781.08
$471,781.08 $0.00
$0,00
$0.00
Retail
Department
Istore
0%
100%
444,342.96
No Change
100.00%
100.00%
100.00%
$444,342.96
$444,342.96
$444,342.96 $0.00
$0.00
$0.00
Retail
Retail -
Furniture
90%
10%
320,839.26
Adjoining City
Population
11,26%
10.00%
11.26%
$32,083.93
$36,135-62
$34,109.77 $284,703.64
$288,75533
$286,729.49
Retail
Electronics
20%
80%
319,490.24
50% to Adjoining
CitPopulation
y
- o
80.00%
94.37 %
$127,796.10
$150,751.47
$139,273.78 $168,738.77
$191,694.14
$180,216A6
Retail
Hotel
Annualized
0%
100%
250,000.00
No Change
100,00%
100.00%
1W00%
$250,000.00
$250,000.00
$250,000.00 $0.00
$0.00
$0-00
Retail
Department
store
0%
100%
213,707.36
No Change
100.00%
100.00%
100.00%
$213,707.36
$213,707.361
$213,707.36, $0.00
$0.00
$0.00
Retail
Department
Istore
0%
100%
156,026.41
I
1 No Chane
100.00%
100.00%
100.00%
$156,026.41
$156,026.411
$156,026.411 $0.0
City of Grapevine
Sales Tax Loss Analysis
Too 100 Taxpayers
City Assigned City Assicined Minimum Maximum Minimum Amount M"IMUM Amount Average Amount of Minimum Amount of Maximum Amount Average Amount of
Business SIC Export % Remamina Rernaininti R49R. Ratio Remaining (Col. J' Remaining (Col. K' Tax Remaining Tax Lost (Col. G - of Tax Loss (Col. L- Tax Lost (Col. 0 Col
Cateaory Category Tax Amount Ratio Remaininct Remainina Col. G) Col, 6) (Col. "Ol. P) Col. M) Col. G) P)12
Movie
Retail
theater 0%
100%
147,432.96
No Change 100-00%
100,00%
1 100.00%
$147,432-96 $147,432.96 $147,432.961 $0.00 $0-00
$0.00
Retail
Hotel 0%
1 100%
118,951.80
No Change 100.00%
100,00%
100.00%
$118,951.80 $118,951.80 $118,951.80 $0.00 $0.00
$0.00
Clothing/acc
Retail
ass. 0%
100%
118,570.00
No Change 100.00%
100.00%
100.00%
$118,570.00 $118,570.00 $118,570.00 $0.00 $0.00
$0.00
0%
100%
100.00%
100,00%
100.00%
Retail
Hotel
115,995.71
No Chane
$115,995,71 $115.995.71 $115,995.71 $0.00 $0-00
$0.00
Retail
Airline travel 0%
100%
113,233-23
No Change 100.00%
100.00%
100.00%
$113,23323 $113,233.23 $113,233.23 $0.00 $0,00
$0.00
Sporting
Retail
0%
goods
100%
I
92,861.79
No Change 100.00%
100.00%
100.00%
$92,861-79 $92,861.79 $92,861.79 $0-00 $0.00
$0.00
Grocery 0%
100%
100.00%
100.00%
100.00%
Retail
store
87,345.83
No Change
$87,345.83 $87,345.83 $87,345-83 $000 $0.00
$0.00
Retail
Movie
theater 0%
100%
80,046�06
No Change 10000%
100.00%
100.00%
$80,046.06 $80,046.06 $80,046.06 $0.00 $0.00
$0.00
Retail
Department
store 0%100%100.00%
72,377.45
No Change
100.00%
100.00%
$72,377.45 $72,377.45 $72,377.45 $0= $0.00
$0.00
Clothing/acc
Retail
ass, 0%
100%
63,205,96
No Change 100.00%
100.00%
100.00%
$63,205.96 $63,205.96 $63,205.96 $0.00 $0.00
$0.00
Books music
Retail
software 0%
100%
60,898.53
No Change 100.00%
10U0%
100.00%
$60,898.53 $60,898.53 $60,898,53 $0.00 $0.00
$0.00
Clothinglacc
Retail
0%
ass,
100%
58,868.96
No Change 100�00%
100.00%
10000%
$58,868.96 $58,868.96 $58,868.96 $0.00 $0.00
$0.00
Retail
-Hotel 0%
100%
58,824.55
No Change 100.00%
100,00%
100.00%
$58,824-55 $58,824.55 $58,824.55 $000 $0.00
$0.00
Misc'
Adjoining City
Retail
0%
equipment
100%
56,333,37
11.26%
Population
11.26%
100.00%
$6,344.74 $56,333,37 $31,339.05 $0.00 $49,988.63
$24,994.32
Airport
Retail
concessions 0%
100%
55,615.09
No Change 100.00%
100.00%
100.00%
$55,615.09 $55,615.09 $55,615.09 $0.00 $0.00
$0.00
Music /DVD
Retail
sales 0%100
%
53,300.74
No Change 100,00%
100.00%
100,00%
$53,300,74 $53,300.74 $53,300.74 $0.00 $0.00
$0.00
Department
Retail
0%
.Store
100%
53,207.66
No Change 100.00%
100.00%
100.00%
$53,207.66 $53,207.66 $53,207.661 $0.00 $0.00
$0.00
Retail
Clothinglacc
ass. 0%
100%
52,185.20
No Change 100.00%
100.00%
100.00%
$52,185.20 $52,185.20 $52,18520 $0.00 $0.00
$0.00
Retail
Misc.
products 0%
100%
51,693.05
No Change 100.00%
100.00%
100.00%
$51,693.05 $51,693.05 $51,693.05 $0.00 $0.00
$0.00
Retail
Golf play 0%
and
100%
50,172.01
No Change 100.00%
100.00%
100.00%
$50,172.01 $50,172.01 $50,172.01 $0.00 $0.00
$0.00
Retail
Department
-store 0%
100%100.00
49,662.11
No Change %
100.00%
100.00%
$49,662.11 $49,66211 $49,662.11 $0.00 $0.00
$0.00
Retail
Auto
supplies 0%
100%
48,710.81
No Change 100.00%
10000%
100-00%
$11,710.81 $48,710.81 $48,710.81 $0.001 $0.00
$0.00
Clothinglacc
Retail
ass. 0%
100%
46,971.99
No Change 100.00%
100.00%
100.00%
$46,971.99 $46,971.99 $46,971.99 $0.00 $0,00
$0.00
Clothing/acc
Retail
ess� 0%
100%
45,787,24
No Change 100.00%
100.00%
100.00%
$45,787.24 $45,787.24 $45,787.24 $0.00 $0.00
$0.00
Sporting
Retail .goods
0%
100%
45,36Z93
No Change 100.00%
100.00%
100.00%
$45,362.93 $45,362.93 $45,362.93 $0.00 $0.00
$0.00
Fabric and
Retail
Hobby 0%
100%
45,28&08
No Change 100,00%
100.00%
100.00%
$45,285.08 $45,285.08 $45,285.08 $0.00 $0.00
$0.00
Retail
Shoe sales 0%
100%
43,298.21
No Change 100.00%
100.00%
100.00%
$43,298.21 $43,298.21 $43,298.21 $0.00 $0.00
$0.00
Auto
Retail
0%
su lies
100%
41,844.57
No Change 100.00%
100.00%
100,00%
$41,844.57 $41,844,57, $41,844.57 $0.001 $om
City of Grapevine
Sales Tax Loss Analysis
Top 100 Taxpayers
i
Ratio Minimum Maximum Minimum Amount Maximum Amount Average Amount of Minimum Amount of Maximum Amount Average Atroumof
Business SIC Ci Assi mad City Assigned Tax Amount Ratio Ratio Ratio Remaining (Cot. J' Remaining (Col. K' Tax Remaining Tax Lost (Col. O • of Tax Loss (Cot. L- Tax Lost (Col. O r Col
Category Category Export ° Remaining % Remaining col. G) Cot. G) (col. G -Col. t+) col. M) Col. G) Pi/2- Remaining Remaining
Retail
Convemenc
a store
0%
100%
41,250.35
No Chane
100.00%
100.00%
100.00°h
$41,250.35
$41,250.35 $41,250.35 $0.00 $0.00
$0.00
Retail
Plumbing
fixtures
99%
1 %
38,212.02
Texas Taxpayer
Ratio
0-35%
0.35%
1.00%
$132.64
$382.12 $257.38 $37,829.90 $38,079.38
$37,954.64
Retail
Software
99%
1%
37,388.92
No Change
100.00%
1.00%
100.00%
$373.89
$37,368.92 $18,881.40 $0.00 $37,015.03
$18,507.52
Retail
Misc.
products
0%
100%
36,452.52
No Chane
10.00%
10.00%
10.00%
$3,645.25
$3,645.25 $3,645.25 $32,807.27 $32,807.27
$32,807.27
Retail
Grocery
store
0%
100%
35,737.24
No Change
100.00%
100.00%
100.00%
$35,737.241
$35,737.24 $35,737.24 $0.00 $0.00
$0.00
Retail
Misc.
products
0%
100%
34,307.39
No Change
100.00 %
100.00 %
100.00
$34,307.39
$34,307.39 $34,307.39 $0.00 $0.00
$0.00
Retail -
Lumber &
0%
100%
20% to Adjoining
97.75%
97.75%
100.00%
Retail
Bldg.
34,153.50
City Population
$33,384.36
$34,153.50 $33,768.93 $0.00 $769-14
$384.57
Retail and
Warehouse
Furniture
90%
10%
212,843.50
Adjoining City
Population
1126%
.
1000%
1126
.
$21,284.35
$23,972.23 $22,628.29 $188,871.27 $191,559.15
$190,21521
Total
Retail
$ 4,574,575.63
$ 3,743,907.55
$ 3,861,624,73 $ 3,802,766.17 $ 712,950.85 $ 830,666.08
$ 771,809.46
Services
Parking and
Misc.
0%
100°,6
481,867.13
No Change
100.00 %
100.00 %
100.00
$481,867.13
$481,867.13 $481,867.13 $0.00 $0.00
$0.00
Services
Building
Maintenanc
0%
100%
94,695.20
Adjoining City
Population
1126%
11.26%
100.00%
$10,662.68
$94,695.20 $52,678.94 $0.00 $84,032.52
$42,016.26
0%
100%
100.00%
100.00%
100.00%
Services
Service
39,893.80
No Chane
$39.893.801
$39,893.80 $39,893.80 $0.00 $0.001
$0.00
Total
Services
$ 616,456.13
$ 532,423.61
$ 616,456.13 $ 574,439.87 $ - $ 84,032.52
$ 42,016.26
Utility
Ener
0%
100%
$ 702,398.96
No Change
100.00%
100.00%
100.00%
$702,398.96
$702,398.96 $702,398.96 $0.00 $0.00
$0.00
Utility
Telecom.
0%
100%
522,521.84
No Chane
100.00%
100.00%
100.00%
$522,521.84
$522,521.84 $522,521.84 $0.00 $0.00
$0.00
Utility
iTelecomm.
0%
100%
440,637.92
No Chane
100.00%
100.00%
100.00%
$440,637.92
$440,637.92 $440,637.921 $0.00 $0.00
$0.00
Utilit
Telecomm.
0%
100%
252,098.38
No Change
100.00%
100.00%
100.00%
$252,098.38
$252,098.38 $252,098.38 $0.00 $0.00
$0.00
Utilit
Ener
0%
100%
93,507.81
No Chane
100.00%
100.00%
100.00%
$93,507.81
$93,507.81 $93,507.81 $0,00 $0.00
$0:00utility
Telecom.
0%
100%
74,202.97
No Chane
100.00%
100.00%
100.00%
$74,202.97
$74,202.97 $74,202.97 $0.00 $0.00
$0.00
Utility
Telecom
0%
100%
39,475.63
No Change
100.00%
100.00%
100.00%
$39,475.63
$39,475.63 $39,475.631 $0.00 $0.00
$0.00
Utilit
Telecom
0%
100%
37,922.20
No Chane
100.00%
100.00%
100.00%
$37,922.20
$37,922.20 $37,922.20 $0.00 $0.00
$0.00
Utilit
Cable Pay
Television
0%
100%
34,614.03
No Chane
100.00 %
100.00 %
100.00
$34,614.03
$34,614.03 $34,614.03 $0.00 $0.00
$0.00
Utilit
Telephona
Communicat
0%
100%
34,466.06
No Change
100.00%
100.00%
100.00%
$34,466.06
$34,466.06 $34,466.06 $0.00 $0.00
$0.00
Total
U it tility
$ 2,231,845.79
$ 2,231,845.79
$ 2,231,845.79 $ 2,231,845.79 $ $
$
Grand
Total
$10,746,988.34
$8,419,422.09
$8,958,967.28 $8,689,194.68 $1,788,021.06 $2,327,566.25
$2,057,793.66
Total
Total # of
% Loss of
Collections
16,120,632.00
Taxpayers
1611
Total
52.23%
55.57% 53.90% 11.09% 14.441A
12.76%
Top 100
Collections as
66.67%
Top 100 as a
% of Tota!
6.21
L U U U U U U (- (-Q.C.. UUUUUUUUUUUUUU- -o",L J -, -) 00a -�.)••
APPENDICES
Appendix B-1
Kasner &
Associates LLC
City _o�fGra Grapevine
Sales Tax Loss Analysis
Top 100 Taxpayers
Col. A
Col. 8
COL C
Col. D
Col. E
Col. F
Col. G
Col. H
Col. I
COU
Col. K
Col. L
Col. M
-Col. N
Col. 0
Col. P
Col. Q
#
Taxpayer
Name
Business
SIC Category
City Assigned
Ci !y Assigned,
Tax Amount
RA92
Ratio
Remaining
Minimum
Ratio
Remaining
Maximum
Minimum Amount
Remaining (Col. J
Col. 0)
Maximum Amount
Remaining (Col. K'
Col. G)
Average Amount of
Tax Remaining
(Col. G -Col. P)
Minimum Amount
of Tax Lost (Col.
0 - Col. M)
Maximum Amount
ofax Loss (Col.
L -Col. 0)
Average Arnourrt
ofTax lost (Col.
o+ Col P)12
Ratio
Remaining
Category
Total B2B
1,459,306.90
$221,526.43
557,640.06
389,583.24
901,666.85
1,237,780.47
1,069,723.66
Total
Contractor
176,224,11
$1,138.93
$2,820.74
$1,979.83
$173,40137
$175,085.18
$174,244.28
Total Leases
1
896,397.28
896,397.28
896,397.28
896,397.28
-
Total
Restaurant
792,182.50
$792,182.50
$792,182.50
$792,182.60
$0.00
$0.001
$0.00
Total Retail
4,674,575.63
$3,743,907.65
$3,861,624.78
$3,802,766.17
$712,950.85
$830,668.08
$771,80946
Total Services
616,456.13
$632,423.61
$616,456.13
$574,439.87
$0.00
$84,032,62
$42,016.26
Total Utility
2,231,845.79
$2,231,845.79
$2,231,846.79
$2,231,845.79
$0.00
$0.00
$0.00
Grand Total
$10,746,988.34
$8,419,422.09
$8,958,967.28
$8,689,194.68
$1,788,021.06
$2,327,666.25
$2,057,793,66
Total
Collections
16,120,632.00
Total # of
,Taxpayers
1611
% Loss of
Total
52.23%,
55.579/6,
_ 63.90%
11.09%
14.44%
Top 100 as a
% of Total
Top 100
Collections as
66.67%
Top 100 as a
% of Total
6.21%,
APPENDICES
Appendix E
Kasner &
Associates LLC
Research Sources
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS — SIU TAX
S/U Tax General
http://www.window.state.tx.us/taxinfo/sales/
Reports by Industry
http://ecpa.cpa.state.tx.us/allocation/HistSales.j spj sessionid=HW44UA02X314ZWUIRO
ACFGA
TEXAS ATTORNEY GENERAL'S OFFICE
Texas Comptroller Case Listing
http://www.oag.state.tx.us/AG Publications/comptroller summaries.shtml
SIC — DEFINED
http://www.window.state.tx.us/ecodata/sicl987.html
NAILS — Defined
http://www.naics.com/search.htm
TEXAS POPULATION INFORMATION
Texas Department of Health
http://soupfin.tdh.state.tx.us/pop2000a.htm
North Central Texas Council of Governments
http://www.nctcog.dst,tx.us/
OTHER STREAMLINE SIU TAX SITES
E-Commercetax.com
http://www.ecommercetax.com/SSTP.htm
Streamlinesalestax.org
http://www.streamlinedsalestax.org/
SalesTaxCPA.com
http://www.salestaxcpa.com/id66.htm
National Governor's Association
http://www.nga.org/nga/salestax/1%2Cll69%2C2j2COO.html
APPENDICES
Appendix C
Kasner &
ASSUCiateS LLC
City of Grapevine
Alternative Reporting Ratios
Ratio Name
Area Served
Customer
Numerator Description
Denominator Description
Numerator
Denominator
Ratio
Ratio Name
Ratio
Base
Texas Residential
Texas
Residential
Estimated Grapevine
Population as of 1/1/2003 per
Estimated 2003 Texas
Population per Texas
43,300
22,016,911
0.1967%
Texas Population
0.0020
Ratio
North Texas Council of
Department of Health
Ratio
Governments
Estimated Southlake,
Estimated Grapevine
Colleyville, Euless,
Adjoining City Ratio
Adjoining Cities
Residential
Population as of 1/1/2003 per
Flowermound, Coppell, Irving
43,300
384,450
°
11.2628/o
Adjoining City
Ratio
0.1126
North Texas Council of
Population as of 1/1/2003 per
Governments
North Texas Council of
Governments
Estimated Grapevine
Estimated North Central
N. Central Texas Ratio
North Central
Residential
Population as of 1/1/2003 per
Texas Population per North
43,300
5,714,150
°
0.7578 /o
N. Central Texas
Ratio
0.0076
Texas
North Texas Council of
Texas Council of
Governments
Governments
Grapevine Construction Gross
Texas Construction Gross
Sales per First, Second &
Sales per First, Second &
°
0.1795!0
Texas Contractor
0.0018
Texas Contractor Ratio
Texas
Contractors
Third Quarter 2003 -
Third Quarter 2003 -
Ratio
Comptroller's Report
Comptroller's Report
8,062,284
4,491,511,551
Grapevine Manufacturers
Texas Manufacturers Gross
Texas Mfg. Ratio
Texas
Manufacturers
Gross Sales per First, Second
Sales per First, Second &
0.4138%
Texas Mfg. Ratio
0.0041
& Third Quarter 2003 -
Third Quarter 2003 -
Comptroller's Report
Comptroller's Report
29,759,805
7,191,487,202
Grapevine Retail Trade Gross
Texas Retail Trade Gross
Sales Tax per First, Second &
Sales per First, Second &
0.6785%
Texas Retail
0.0068
Texas Retail Ratio
Texas
Restaurant
Third Quarter 2003 -
Third Quarter 2003 -
Ratio
Comptroller's Report
Comptroller's Report
604,588,029
89,105,533,812
Texas Taxpayer Ratio
Texas
General
Grapevine Taxpayers (outlets)
Texas Taxpayers per°
Comptroller's MSA Report for
1,611
464,115
0.3471%
Texas Taxpayer
Ratio
0.0035
Business
Active in 2003
Third Quarter Outlets
- Q1 -L- C- L L L (-, L, LL L, L, L U L) U L) L) L) U U U 0 U 0 U Q 0 Q 0 Q,-, - -J. -,3,--, J 004
.APPENDICES
Appendix D
Hasner & I
AssociateS LLC
I
City of Grapevine
First, Second & Third Quarter 2003 Taxable Sales Reported by Industry
Industry
Grapevine Amount
Grapevine
Percentage
Dallas MSA
Amount
Dallas MSA
Percenta a
State Amount
State
Percentage
Agriculture, Forest,
fishing & Minin2
$2,944,151
0.34%
$274,425,795
0.77%
$1,048,935,772
0.70%
Construction
$8,062,284
0.93%
$1,092,929,805
3.07%
$4,491,511,551
3.02%
Manufacturing
$29,759,805
3.44%
$2,186,343,800
6,14%
$7,191,487,202
4.83%
Transportation, Telecom,'
Utilities
$17,491,339
2.02%
$7,260,535,636
20.38%
$14,919,066,622
10.02%
Wholesale
$69,289,602
8.02%
$2,705,953,975
7.60 ' %
$13,156,089,923
8.84%
Retail
$604,588,029
69.97%
$17,421,879,242
48.91%
$89,105,533,812
59.88%
Services
$129,748,525
15.02%
$4,398,778,406
12.35%
$17,837,921,619
11.99%
Other Non -Classifiable
$2,146,0351
0,25%,
$277,677,715,
0,78%
$1,068,333,8991
0.72%
,Establishments
Total
$864,029,7701
100.00%1
$35,618,524,3741
100.00%1
$148,818,880,4001
100.00%