COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred He OFFICE.:
MEETING DATE• Jan arv 14 2002
SUBJECT: (PLEASE BE SPECIFIC)
TIME PREFERRED:
Consider and discuss proposal by State Tax Management and Review to collect mis~allocated sales tax
revenue. % ~ °
t
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
County Judge
Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter
551 and 552, Goverrunent Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:
5:00 P.M. previous Tuesday.

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contribute towazds you request being addressed at the eazliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
l;%
County Judge
STATE TAX MANAGEMENT & REVIEW
~~`Cale ~ ax ~rt~~zlanci+ ~G~OU~ti-xy
December 18, 2001
TO: Kerr County Commissioners Court
The Honorable Judge Frederick L. Henneke
Subject: Fraudulent Usage of County Sales Tax Revenue
Misallocated County Sales Tax -Recovery Proposal
- Second Notice -
The Kerr County Sales Tax was adopted to generate tax revenue for the "use and benefit" of
Kerr County and its residents. The use of these revenues by any other jurisdiction outside
the borders of Kerr County is a recurring illegal Misuse & Abuse of County Revenue. The
Commissioners Court was duly notified that county sales tax revenue are being diverted for
the use and benefit of several Metropolitan Transit Authorities (MTA's). These unlawful
diversions have occurred since 1988.
This unlawful Misuse of Kerr County Sales Tax Revenue should not be allowed to continue!
Furthermore, any and all Misallocated Kerr County Sales Taxes should be recovered. State
Tax Management & Review humbly ask that the Commissioners Court reconsider the
Proposal to Recovery all Misallocated Sales Taxes revenue on a Contingency Fee Basis. The
Contingency Fee is aresults-oriented compensation that assures the residents of Kerr County
that the lost revenue will be recovered before incurring an expense in the matter.
Contingency Fee Contracts signed after December 31, 2001 will be 40% (before Dec 31,
2001 is 33.33%)
The decision to utilize State Tax Management to recover Misallocated County Sales Taxes
will also establish adequate financial controls to prevent fraudulent tax diversions and
misallcations in the future.
Sincerely,
~~_J ' z ' /
Tommy J. an, Pro tetor
State Tax Management & Review
cc: H. A. Baldwin William H. Williams Iii
Jonathan P. Letz Larry Griffin
Lmalea ~' ~C4e. - C.~xairufirQe - ICJ ~Datell¢ccu~ianc~ - l?~%'(.aCaK 1~e~ir'cle - l?'I"lurecCVOe2~era~.e
214-376-5999 1411 Grinnell, Dallas, TX 75216-6226
LIMITED POWER OF ATTORNEY
To The Texas Comptroller of Public Accounts:
Kerr County has retained the services of State Tax Management & Review to inquire, review, investigate, audit,
and analyze the collections of County Sales and Use Taxes applicable to taxable items shipped directly, or brought
by the purchaser or lessee directly, into Kerr County. Their initial activities have been requested to detect errors
and/or omissions in the Comptroller's department "collection, enforcement and payments" of County &SPD sales
and use taxes. The "collection, enforcement & payment" ftmctions during the period January 1, 1990 through June
30, 2003 are therefore subject to review and/or monitoring.
Additionally, State Tax Management & Review is authorized to audit and monitor the "Administration, Collections,
Reporting and Enforcement of County &SPD Taxes" activities required of the Comptroller under section 323.301-
Comptroller to Collect and Administer Taxes.
State Tax Management & Review is also authorized to request & received reports and documentation from the
Comptroller, relative to Kerr County, under section 323.302-Comptroller's Reporting Duties.
State Tax Management & Review should be treated with the same personal and professional courtesies that are
nornrally extended to Kerr County. Your complete cooperation in these matters will be greatly appreciated.
Sincerely,
Kerr County
Commissioner Precinct # 1
Signature
Print Name:
Commissioner Precinct #3
Signature
Print Name:
County Judge
Signature
Print Name:
Commissioner Precinct #2
Signature
Date: ~ ~PrintName: Date:
Date:
Date:
Commissioner Precinct #4
Signature _
Print Name:
Date:
Service Provider:
Signature~~' ~ ~~
Print Name: Tomm or pan P rietor
State Tas Management & Review
Date: December 18 2001
CONTRACT
Contingency Fee Agreement
This Contingency Fee agreement is between Kerr County, Kerrville, Texas 78028, and Tommy J. Morgan, d.b.a.
State Tax Management & Review.
Services Provided: Work. State Tax Management & Review shall perform all work necessary to achieve
an agreement with the Texas Comptroller of Public Accounts for the Recovery of MisAllocated County, SPD and
Error Taxes (plus interest or abatement of monthly 2% service charges). Misallocated County and SPD taxes shall
mean any taxes collected by the Texas Comptroller that is appropriately due Kerr County, but was erroneously paid
to another taxing jurisdiction; i.e. MTA. Error taxes shall mean all taxes collected in error by the Texas Comptroller
that are associated with taxable or nontaxable items shipped directly, or brought by a purchaser or lessee directly
into the Kerr County. The county shall provide a Limited Power of Attorney, granting State Tax Management the
authority to act as the COUNTY'S AGENT in this matter. The Work period shall cover January 1, 1990 thru June
30, 2003.
Compensation: Contingency Fee. The fee for the services provided shall be a contingency fee calculated
as a percentage of the amount of MisAllocated County, SPD and Error Taxes (plus any other additional funds). The
contingency fee base shall be the amount of County, SPD and Error Taxes that the Texas Comptroller of Public
Accounts agrees are due and payable to Kerr County. In this case the contingency Fee rate shall be 33.333%. If
an agreement between the Comptroller and State Tax Management & Review requires the intervention of District
Court, the Contingency Fee shall be 40%. [The contingency fee base excludes any and all regular & routine
payments to the county. Contrat signed after Dec 31 will be 40% Cotingency; 47% with court assistance]
Kerr County Approval:
Commissioner Precinct #1
Signature
Commissioner Precinct #2
Signature
Print Name: Date: I I Print Name: Date:
Commissioner Precinct #3 Commissioner Precinct #4
Signature Signatnre
Print Name: Date: Print Name: Date:
County Judge
Signature
Print Name:
Date:
Service Provider:
Signature~J ~~Z
Print Name: TOmm r an Pt rletOr
State Tax Management & Review
Date: December 18.2001