Tax Management Associates, Inc Exemption Audit Svc. for Tax Revenue3Tax Management Associates, Incorporated
& Duval County, Florida
Agreement for Provision of Exemption Audit Services for Tax
Revenue Enhancement
This Agreement (the "Agreement") is made and entered into this Qt day of
A10M be( 2016, by and between the DUVAL COUNTY PROPERTY
APPRAISER, with its principal place of business located at 231 E. Forsyth St. Suite 270
Jacksonville, FL 32202 ("PROPERTY APPRAISER"), the DUVAL COUNTY TAX
COLLECTOR, with its principal place of business located at 231 E. Forsyth St.
Jacksonville, FL 32202 ("TAX COLLECTOR"), and TAX MANAGEMENT
ASSOCIATES, INC. [TMA] a company authorized to conduct business in Florida, to
assist the PROPERTY APPRAISER through the performance of audits to verify
entitlement to personal exemptions from ad valorem taxation granted on the County tax
roll. The PROPERTY APPRAISER, TAX COLLECTOR, and TMA are hereinafter
jointly referred to as "Parties."
Contractual services may begin upon full execution of this contract.
WITNESSETH:
WHEREAS, the PROPERTY APPRAISER is responsible under Florida law for the
administration of ad valorem property tax exemptions and the preparing and filing of tax
liens for back taxes related to the removal of undeserved exemptions; and
WHEREAS, the TAX COLLECTOR is responsible under Florida law for the
collection and distribution of ad valorem property taxes, including tax liens, and
associated penalties, fees, and interest; and
WHEREAS, the PROPERTY APPRAISER desires to obtain services to Audit the
Duval County tax roll (hereinafter "Audit Services") to identify undeserved personal
exemptions from ad valorem property tax. Such exemptions include, but may not be
limited to, the homestead exemption granted pursuant to Article VIT, section 6 of the
Florida Constitution, and exemptions governed by Chapters 193 and 196, Florida Statutes
(hereinafter collectively "Personal Exemptions"); and
WHEREAS, the City of Jacksonville, on behalf of the PROPERTY APPRAISER,
issued a Request for Proposal No. P-43-16 (the "RFP") for certain services described in
the RFP (the "Audit Services"); and
WHEREAS, TMA agrees to provide said Audit Services to the PROPERTY
APPRAISER pursuant to the charges, terms, and conditions of this Agreement, the RFP,
and TMA's response to the RFP dated August 3, 2016, consisting of 32 pages (the
"Response");
NOW, THEREFORE, in consideration of the promises mutually exchanged, the
Parties agree as follows:
1) INCOPORATION OF RECITALS. The recitals set forth above are hereby
incorporated into and deemed a part of this Agreement.
2) EXEMPTION AUDIT SERVICES
a. TMA agrees to furnish Audit Services to identify undeserved Personal
Exemptions on the Duval County tax roll. The Audit Services provided by TMA
will be performed in accordance with the terms and conditions in this Agreement
and in compliance with all applicable Florida law.
b. It is expressly agreed by the Parties that the PROPERTY APPRAISER shall
retain the final discretion to act on any and all Audit recommendations made by
TMA. The PROPERTY APPRAISER shall remove Personal Exemptions and
prepare and file tax liens in accordance with governing Florida law and
PROPERTY APPRAISER internal policies and procedures. The PROPERTY
APPRAISER retains the right to limit a lien to certain tax years, waive penalties
and interest, or revoke a lien, as allowed by Florida law. This Agreement does
not, and shall not be construed to delegate any of the PROPERTY APPRAISER'S
statutory duties, obligations, or decision-making authority related to the
administration of exemptions.
c. The PROPERTY APPRAISER shall assign properties to TMA for Audit Services
as may hereafter be deemed appropriate. TMA agrees that no TMA employee
will discuss any aspect of an Audit being performed, except with authorized TMA
personnel, authorized PROPERTY APPRAISER or TAX COLLECTOR officials,
and the property owner being audited (to the extent hereafter determined
appropriate by the PROPERTY APPRAISER), unless otherwise directed to do so
by the PROPERTY APPRAISER. All correspondence to property owners in
connection with audits will be signed by the PROPERTY APPRAISER or by its
authorized designee.
d. TMA agrees to audit all Personal Exemptions assigned for Audit for the most
current year and applicable prior years in compliance with Florida Statutes, which
provide for property tax liens for undeserved Personal Exemption for up to ten
(10) years.
e. The PROPERTY APPRAISER agrees to make available to TMA the Duval
County tax roll of granted exemptions for the years for which audits are to be
performed. Additionally, as necessary, the PROPERTY APPRAISER may make
available copies of Personal Exemption applications and supporting documents,
or information provided in said applications, subject to confidentiality provisions
established by Florida law and addressed in Section (3), herein.
f TMA agrees to provide training to designated employees of the PROPERTY
APPRAISER as to all aspects of the Audit Services provided pursuant to this
Agreement. Any appropriate designee of the PROPERTY APPRAISER may
perform an Audit with TMA personnel, provided the PROPERTY APPRAISER
shall be responsible for any related expenses of such PROPERTY APPRAISER
employee.
3) PUBLIC RECORDS RETENTION & CONFIDENTIALITY
a. The PROPERTY APPRAISER and TAX COLLECTOR are public agencies
subject to Florida's Public Records Law, including records retention, production,
and confidentiality provisions.
b. TMA and its employees and agents shall be bound by all applicable public
records laws to the same extent that those laws apply to the PROPERTY
APPRAISER and TAX COLLECTOR, (collectively the "public agency"). These
requirements include but may not be limited to those stated in Chapter 119,
Florida Statutes, and Sections 193.114 and 193.074 Florida Statutes, under which
social security numbers, Personal Exemption applications and supporting
documents and any information provided within the application or supporting
documents, are CONFIDENTIAL and EXEMPT from disclosure.
c. Specifically, TMA agrees to
i. Keep and maintain public records required by the public agency to
perform the Audit Services.
ii. Upon request from the public agency's custodian of public records,
provide the public agency with a copy of the requested records or allow
the records to be inspected or copied within a reasonable time at a cost
that does not exceed the cost provided by law.
iii. Ensure that public records that are exempt or confidential and exempt
from public records disclosure requirements are not disclosed except as
authorized by law for the duration of the term of this Agreement and
following completion of the contract if the contractor does not transfer
the records to the public agency.
iv. Upon completion of this Agreement, transfer, at no cost to the public
agency, all public records in possession of TMA or keep and maintain
public records required by the public agency to perform the Audit
Services. If TMA transfers all public records to the public agency upon
completion of this Agreement, TMA shall destroy any duplicate public
records that are exempt or confidential and exempt from public records
disclosure requirements. If TMA keeps and maintains public records
upon completion of this Agreement, TMA shall meet all applicable
requirements for retaining public records. All records stored
electronically must be provided to the public agency, upon request from
the public agency's custodian of public records, in a format that is
compatible with the information technology systems of the public
agency.
d. IF TMA HAS QUESTIONS REGARDING THE APPLICATION
OF CHAPTER 119, FLORIDA STATUTES, TO ITS DUTY TO
PROVIDE PUBLIC RECORDS RELATING TO THIS
AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC
RECORDS AT ((904) 630-7678; PRROCOJ.NET; CITY OF
JACKSONVILLE, PUBLIC RECORDS REQUEST, 214 N.
HOGAN STREET, SUITE 1180, JACKSONVILLE, FLORIDA
32202).
4) COSTS AND PAYMENT FOR AUDIT SERVICES:
a. For services famished under this Agreement TMA shall be paid an amount equal
to twenty-eight percent (28%) of the gross taxes, penalties, and interest collected
by the Tax Collector in relation to the removal of Personal Exemptions as a result
of any audit performed by TMA (hereinafter the "Fee").
i. The Property Appraiser shall file liens on properties submitted by TMA
as ineligible for the homestead exemption when the Property Appraiser
has determined in his sole discretion that such properties are ineligible
for the exemption.
ii. If, prior to filing a lien, the Property Appraiser determines in his sole and
absolute discretion to not pursue the lien as such filing is not warranted
or not supportable in a court of law, then such audit services shall be
considered to not have produced any compensable service.
iii. If, after filing a lien, the Property Appraiser determines to remove or
delete, or otherwise abate amounts that are not properly owed on
homestead properties as previously determined to be ineligible for the
homestead exemption through the TMA audit, then TMA will not be
paid on such accounts meeting these criteria.
b. The Fee shall be calculated upon full or partial payment of any qualifying tax lien,
whether payment is made prior to or after recording of the lien, and shall be
calculated based on taxes levied by all taxing authorities in the tax district of the
audited property for each tax year, pursuant to associated Interlocal Agreements
with each taxing authority. If no Interlocal Agreement exists with a specific
taxing authority for whatever reason, the PROPERTY APPRAISER shall not
provide Personal Exemptions for that non -participating taxing authority to TMA
for Audit Services. The partial or full payment of any tax lien arising during a
period of non -participation by a taxing authority is not a qualifying tax lien, and
no portion of the collection of a non -qualifying tax lien shall be included in the
calculation of fees due TMA.
c. The Fee shall be paid exclusively from the taxes, penalties, and interest collected
in relation to the removal of Personal Exemptions as a result of audits performed
by TMA. The Fee shall not be payable from future ad valorem tax levies.
d. This Agreement does not constitute a pledge or general obligation of ad valorem
taxation, or create any obligation on any taxing authority to appropriate or make
monies available for the purpose of the Agreement for any tax year. This
Agreement does not create the right in any party to compel the exercise of the ad
valorem taxing power of any taxing authority, and does not impair the taxing
power of any taxing authority.
e. To facilitate TMA's billing for audit fees, the Tax Collector agrees to provide
TMA a monthly report listing all taxes, penalties and interest collected as a result
of TMA's audits. The report shall include the parcel number, property owner, site
address of the properties audited, total collected amount and the collection date.
This report, if possible, should be in spreadsheet format; if not available in
spreadsheet format, a system -generated report will be acceptable. TMA shall then
invoice the Tax Collector monthly for applicable Audit Fees based on the Tax
Collector's monthly report. Audit Fees will be due and payable within fifteen
(15) days following the billing date.
I. If the TAX COLLECTOR distributes a TMA Fee based on a lien payment that is
subsequently reversed for any reasonincluding but not limited to a correction to
the tax roll, a final judgment in a lawsuit, or a bounced check—the TAX
COLLECTOR provides notice to TMA and TMA shall return the Fee to the Tax
Collector. If, in a month immediately following the payment reversal, the total
balance of TMA Fees for the monthly distribution exceeds the Fee made pursuant
to the reversed payment (the "reversed Fee"), said reversed Fee will be withheld
from the monthly distribution. Any such withholding will be reflected in the
TAX COLLECTOR'S monthly report. If the balance of the TMA Fees in the
following month is not sufficient to cover the reversed Fee, the TAX
COLLECTOR will send TMA a bill for the remainder of the reversed fee, and
TMA will remit the full amount billed within 30 days. Regardless, the Tax
Collector may continue to withhold from payments owed to TMA such amounts
as necessary to recover all reversed Fees. Should a reversed payment be
subsequently repaid or otherwise restored for any reason, TMA retains the right to
the reversed Fee, which will be redistributed upon receipt by the
TAX COLLECTOR of a new payment, in full accordance with this Agreement.
g. Collections on all properties the Property Appraiser authorizes TMA to send a
Homestead Audit Questionnaire to that are identified by TMA as potentially
having received undeserved Personal Exemption(s) shall be construed to be the
result of the provided Audit Services and shall be subject to TMA's Fee under
these payment provisions. However, no fee shall be paid on properties the
Property Appraiser identified as potentially having received undeserved Personal
Exemptions prior to providing TMA the Personal Exemption data file, or if the
PROPERTY APPRAISER discovers an undeserved Personal Exemption on a
property that was not identified by TMA as potentially having received
undeserved Personal Exemption(S), no Fee shall be paid in relation to that
property.
i. Each individual property, as denoted by the parcel identification number
on the property tax roll, shall be treated as a separate account under
these payment terms. Any individual account is severable and treated as
unique and distinct in terms of the amount owned to TMA for services
provided under this contract. Payments of the Fee for multiple accounts
may be made together provided that an accounting of the Fee for each
individual account is provided.
h. All expenses incurred by TMA in performing audits under this Agreement
including, but not limited to, travel, food, lodging, mileage, postage, salaries, etc.
shall be the responsibility of TMA. TMA shall maintain a sufficient workforce of
employees necessary to provide the contracted services, and there shall be no
additional compensation paid to TMA for said employees.
i. All legal costs involving appeals of the removal of Personal Exemptions resulting
from audits shall be the responsibility of the PROPERTY APPRAISER. TMA
shall be responsible for defending its audit findings throughout any appeals
process, as appropriate and necessary, without additional cost to the PROPERTY
APPRAISER. Defense of audit findings may include personal appearances at
meetings with property owners or their representatives, and provision of
testimony and evidence concerning information identified in an audit at any
administrative, judicial, or quasi-judicial hearings.
5) TERMINATION
a. This Agreement shall become effective from the date entered above and shall
remain in effect for an initial term of twelve (12) months from the effective date
as specified in a Notice to Proceed letter issued to TMA by the PROPERTY
APPRAISER, and at the PROPERTY APPRAISER'S election, in his sole
discretion, shall continue in effect thereafter on a year-to-year basis, but not to
extend beyond April 12, 2021. After the initial term, any Party can terminate this
agreement by providing thirty (30) days' notice of termination to the other Parties
in writing.
b. If through any cause, TMA, the PROPERTY APPRAISER, or the TAX
COLLECTOR fails to fulfill its obligations as provided by this Agreement, or
materially violates any of the covenants or stipulations within this Agreement, or
becomes unsatisfied with services rendered, and such failure or violation
continues for thirty (30) days after written notice thereof by a Parry, any Party
shall thereupon have the right to terminate this Agreement immediately upon
giving written notice to the other Parties. Said notice shall be delivered to the
Parties by hand delivery or first class mail, postage paid to the mailing address as
specified herein under "Notice."
In the event that the two largest county -wide taxing authorities terminate the
Interlocal Agreement or sufficient funds are otherwise not available to support
this Agreement for a new fiscal period, the PROPERTY APPRAISER shall notify
TMA of such occurrence and the Agreement shall terminate on the last day of the
current fiscal period without penalty or expense. In the event of such termination,
Fees for all Audits completed by TMA up to the date of the notification of
termination of the Interlocal Agreement or insufficient budgeted funds shall be
payable in accordance with the terms provided by this Agreement.
6
d. In the event of termination for any reason other than those specified in paragraph
5)c., all Audits assigned to TMA and on which TMA has initiated work or
expended resources, shall be completed by TMA and all Fees for completed
audits shall be payable in accordance with the terms as provided by this
Agreement. Because tax liens may not be paid within the term of this Agreement,
provisions related to the payment of Fees shall survive the termination of the
Agreement term, and shall terminate upon the later of the collection and payment
of all liens related to TMA audits, or five (5) years after a lien has been filed.
e. Upon completion of all Audits, TMA shall provide any records related to this
Agreement to the PROPERTY APPRAISER for record retention purposes, as
further addressed in Section (3), herein.
6) GENERAL PROVISIONS
a. DOCUMENTS COMPRISING AGREEMENT AND CONFLICT
CONTROL: among the documents.
This Agreement consists of the following documents, which are hereby
incorporated as if fully set forth herein and which, in case of conflict, shall have
priority in the order listed:
• This Agreement, as modified by any subsequent signed amendments
• Any amendments to the RFP
• Specific Information Regarding the RFP (Section I of the RFP)
• Description of Services and Deliverables (Section 4 of the RFP)
• General Instructions to Respondents (Section 2 of the RFP)
• General Contract Conditions (Section 3 of the RFP)
• Any Purchase Order under the Contract
• The Response, provided that any terms in the Response that are prohibited
under the RFP shall not be included in this Agreement.
b. INDEMNIFICATION: To the fullest extent permitted by law, TMA shall
indemnify, defend and hold harmless the PROPERTY APPRAISER, TAX
COLLECTOR, the taxing authorities, and their officials, agents, and employees,
from and against all claims, damages, losses and expenses, direct, indirect or
consequential (including, but not limited to, fees and charges of attorneys and
other professionals and costs related to court action or arbitration) arising out of
or resulting from the performance of this contract or the actions of TMA or its
officials, .employees, agents, or contractors under this Agreement or under any
agreements entered into by TMA in connection with this Agreement. This
indemnification shall survive the termination of this Agreement.
c. NON-DISCRIMINATION: TMA represents that it has adopted and will
maintain throughout the term of this Agreement a policy of nondiscrimination or
harassment against any person with regard to race, color, sex (including
pregnancy), sexual orientation, gender identity or expression, religion, political
affiliation, national origin, disability, age, marital status, veteran status, or any
other impermissible factor in recruitment, hiring, compensation, training,
placement, promotion, discipline, demotion, transfers, layoff, recall, termination,
working conditions and related terns and conditions of employment.
d. LAW CONTROLLING: The laws of the state of Florida shall control and
govern this Agreement.
e. NON -ASSIGNMENT: This Agreement is not assignable by any Party, by
operation of law or otherwise.
f MODIFICATION: This Agreement may be modified only by a written
agreement executed by all Parties hereto.
g. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement of
the Parties and no other agreement or modification to this agreement, expressed or
implied, shall be binding on any Party unless same shall be in writing and signed
by all Parties. This Agreement may not be orally modified. Any modifications
must be in writing, expressly titled a modification or addendum to this
Agreement, attached to this Agreement, and signed by all Parties.
h. SEVERABILITY: Should any provision, portion, or application thereof of this
Agreement be determined by a court of competent jurisdiction to be illegal,
unenforceable, or in conflict with any applicable law or constitutional provision,
or should future changes to Florida law conflict with any portion of this
Agreement, the Parties shall negotiate an equitable adjustment in the affected
provisions of this Agreement with a view toward effecting the purpose of this
Agreement, and the validity and enforceability of the remaining provisions,
portions, or applications thereof, shall not be impaired. If a future change to
Florida law conflicts with or preempts the entirety of this Agreement, the
Agreement will be immediately terminated, subject to the public records
provisions herein.
i. HEADINGS: The subject headings of the paragraphs are included for purposes
of convenience only and shall not affect the construction or interpretation of any
of its provisions. This Agreement shall be deemed to have been drafted by all
Parties, and no purposes of interpretation shall be made to the contrary.
j. NOTICE: Any notices to be given or submitted by any Party to the others
pursuant to this Agreement shall be made in writing and sent by first class mail,
postage paid or by hand delivery to:
PROPERTY APPRAISER:
DUVAL COUNTY PROPERTY APPRAISER
231 E. Forsyth St. Suite 270
Jacksonville, FL 32202
ATTN: Jerry Holland, Property Appraiser
TAX COLLECTOR:
DUVAL COUNTY TAX COLLECTOR
231 E. Forsyth St.
Jacksonville, FL 32202
ATTN: Michael Corrigan, Tax Collector
TMA:
TAX MANAGEMENT ASSOCIATES, INC
2225 Coronation Blvd.
Charlotte, NC 28227
ATTN: Richard Cooke, Jr., Chief Executive Officer
EXECUTED AND ENTERED INTO BY THE PARTIES HERETO.
PROPERTY APPRAISER AUTHORIZED SIGNATURE:
1 rry H an
111I.K.As PROPERTY APPRAISER
DUVAL COUNTY PROPERTY APPRAISER
DATE: I/ / 6, /'6
/yf h''wti YADIRA M BOTERO
MV COMMISSION NFF0a2raa
"* », EXPIRES August 5 201]
d091]WL10.] Mso 5eNa:e.<aal
STATE OF FLORIDA
COUNTY OF DUVAL
The foregoing instrument was acknowledged before me this 1_. day of 00ve±IkK 2016, by.
JERRY HOLLAND as Duval County Property Appraiser, who is personally known to me or has
produced — as identification. �r-
No ublic Signature 1' /laser aLJ
TAX COLLECTOR AUTHORIZED SIGNATURE:
DATE: Il/$/l 6
Michael Corrigan
TITLE: As TAX COLLECTOR
DUVAL COUNTY TAX COLLECTOR
STATE OF FLORIDA
COUNTY OF DUVAL
The foregoing instrument was acknowledged before me this 9 tili day of N6✓MAHI 2016, by
MICHAEL CORRIGAN as Duval County Tax Collector, who is personally known to me or has produced
as identification.
Notary Public Sign7w� A Wotan Scal:
J
TMA AUTHORIZED SIGNATURE:
�v DATE:
Richard Cooke, Jr.
TITLE: As CHIEF EXECUTI OFFICER
TAX MANAGEMENT ASSOCIATES, INC
STATE OF NORTH CAROLINA
COUNTY OF Mecklenburg
/`✓"" REBECCA ADAMS
R Notary Public, State of Florida
My Comm. Expires October 2, 2019
4 Commission No. FF 917564
�gnfi
The foregoing instrument was acknowledged before me this I S f day or QVelvl h, ('2016 bv,
<L'L'I , as f,I=C: of — �X A.f0t (' .z,,,p�lr %k;.�pcin
on behalfof the ompn , who is personall} known to me or has produced �i l yn as Identification. n
No}ery Publie5amre{q �h11/7�_7 Notary Seal:
JENNIFER CASALI
Notay public
NY Com.�won Expires Manh 1 I, 2011
APPROVED AS TO LEGAL FORM AS TO
THE PROPERTY APPRAISER AND TAX
COLLECTOR ONLY BY THE
OFFICE OF GENERAL COUNCIL, CITY
OF JACKSONVILLE
Signature: <���6-Z
10