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HomeMy WebLinkAboutDeclaration of Thomas Hilton2 3 4 s 6 7 8 BEFORE THE HEARING EXAMINER OF THE CITY OF RENTON 9 RE: DECLARATION OF THOMAS HJLTON IO TracFone Wireless, Inc. 11 Administrative Appeal 12 13 14 Thomas Hilton, being of full age, declares under penalty of: 15 I am a CPA and have been a member of the Anders, Minkler, Huber & Helm 16 accounting firm in St. Louis Missouri since 1983. In my 37 years of practice, I have 17 performed audits and I currently lead the firm's forensic accounting practice. A copy of my 18 CV is attached as Exhibit A. 19 2.I have reviewed documents which purport to be part of an audit file of Tax 20 Recovery Services, LLC ("TRS") from its audit of TracFone Wireless, Inc. ("TracFone") for 21 the City of Renton ("City"). In my experience, it is standard practice when conducting an 22 audit to maintain a segregated file that includes all correspondence with the taxpayer, 23 summaries of any interviews conducted, and third parties contacted as well as all schedules, 24 (including drafts) for each audit. TRS did not conform to this standard practice. 25 3.I was provided information produced by TRS in this proceeding. Among the 26 items l reviewed was TRS' calculation of the ratio of the population of zip codes partially DECLARATION OF THOMAS HILTON - I 1251 I 0.0002/83436 78.1 LANE POWELL PC 1420 FIFTH A VENUE, SUITE 4200 P 0. BOX 91302 SEATTLE. WA 98111-9402 206 223 7000 FAX 206 223.7107 29th Exhibit A 1 Curriculum Vitae THOMAS E. HILTON, MSF, CPA/ABV/CFF, CVA, CGMA POSITIONS Partner – Forensic and Litigation Services Group Anders Minkler Huber & Helm LLP 800 Market Street, Suite 500 St. Louis, Missouri 63101-2501 314-655-5515 thilton@anderscpa.com Adjunct Professor – Forensic Accounting Richard A. Chaifetz School of Business St. Louis University 2011 - Present Adjunct Professor – Forensic Accounting St. Louis University Madrid, Spain Campus 2018 - 2019 Adjunct Professor – Financial/Management Accounting Boeing Institute of International Business St. Louis University 2019 - Present EDUCATION AND PROFESSIONAL LICENSURE B.S., Business Administration, University of Missouri, St. Louis (1975) M.S., Finance, St. Louis University (1984) Certified Public Accountant, State of Missouri (1978) Certified Public Accountant, State of Florida (1986) Certified Public Accountant, State of Illinois (2007) Certified Valuation Analyst (1991) Accredited in Business Valuation (1999) Certified in Financial Forensics (2008) Certified Global Management Accountant (2012) PROFESSIONAL SOCIETIES AND AFFILIATIONS American Institute of Certified Public Accountants (AICPA) Member - AICPA Board of Directors (2011-2014) Member - Board of Directors AICPA Foundation (2011-2013) Chair - AICPA Forensic and Valuation Services Executive Committee (2007-2010) Member - AICPA Governing Council (2008-2014) Mentor - AICPA Leadership Academy (2009-2010) Member - AICPA Business Valuation, Forensic and Litigation Services Executive Committee (2004-2007) Member - AICPA Forensic Credential Task Force (2006–2008) Member - AICPA Nominating Committee (2006-2007) Chair - Business Valuation Committee (2001-2004) Member - Business Valuation Committee (1999-2004) 2 Florida Institute of Certified Public Accountants (FICPA) Missouri Society of Certified Public Accountants (MOCPA) Chair - MOCPA Board of Directors (2019-2020) Member - MOCPA Board of Directors (2015-present) Member – MOCPA Educational Foundation (2015-2018) National Association of Certified Valuation Analysts (NACVA) Chair - Executive Advisory Board (1998, 1999) Member - Executive Advisory Board (1996-1999) Member - Advisory Board (1994-1995) Charter Member - Board of Directors (1991-1993) CPA Associates International, Inc. Member - National Business Valuation Committee (1996-1998) Chair - National Tax Committee (1991-1993) AICPA Certificate of Educational Achievement Program Business Valuation Specialty: Instructor / Course Moderator (1995-1999) AWARDS AND RECOGNITIONS Business Professional of the Year – Professional Services – National Chapter - Beta Alpha Psi (2014) Joseph A. Boland S.J. Outstanding Alumni Award – Richard A. Chaifetz School of Business, St. Louis University (2013) Top 100 Most Influential Practitioners – CPA Magazine (2006) Top 100 Most Influential Practitioners – CPA Magazine (2005) AICPA Business Valuation Hall of Fame (2004) CPA All Star - Business Valuation Discipline - CPA Magazine (2003) Outstanding Member - National Association of Certified Valuation Analysts (1996) PUBLICATIONS Co-Author: Financial Valuation: Applications and Models. 4th Edition with Website, John Wiley & Sons, Inc. ©2017. Co-Author: Financial Valuation: Applications and Models. 4th Edition, John Wiley & Sons, Inc. ©2015. Co-Author: Financial Valuation: Applications and Models. 3rd Edition, John Wiley & Sons, Inc. ©2011. Co-Author: Financial Valuation: Applications and Models. 2nd Edition, John Wiley & Sons, Inc. ©2006. Co-Author: Financial Valuation: Applications and Models. John Wiley & Sons, Inc. ©2003. ARTICLES Indirect Methods of Income Reconstruction: What Forensic Accountants Can Learn from the Internal Revenue Service Financial Valuation and Litigation Expert, April/May, 2014. Calculation Reports in Litigation: Are You Cruisin’ for a Bruisin’? Financial Valuation and Litigation Expert, February/March, 2013. Aristotle’s Rhetoric and the 21st Century Testifying Expert, Financial Valuation and Litigation Expert, October/November, 2010. 3 Discovery of Draft Reports of Experts: How Do You Spell Relief? Financial Valuation and Litigation Expert, August/September, 2009. “That’s for Me to Know and You to Find Out….” The E-Discovery Amendments to Federal Rules of Civil Procedure Financial Valuation and Litigation Expert, August/September, 2007. You Have to be Believed to be Heard Financial Valuation and Litigation Expert, February/March 2007. The Damage Period: A Key Component in Economic Damages Financial Valuation and Litigation Expert, June/July 2006. Personal Foul: Roughing the Expert, How to Prevent the Exclusion of Your Expert’s Testimony Missouri Lawyers Weekly, February 14, 2005. PRESENTATIONS Managing the Business Risk of Fraud: Implementing a Fraud Risk Management Program, Institute of Internal Auditors, Springfield, IL, 2020. Tales from the Federal Courtroom: The Case of the Conniving CFO, Institute of Internal Auditors, Springfield, IL, 2020. Aristotle’s Rhetoric and the 21st Century Testifying Expert, Florida Society CPAs, 2020 Valuation, Forensic Accounting & Litigation Services Conference, Fort Lauderdale, FL, 2020. How to Become a Testifying Expert, AICPA 2019 Forensic and Valuation Services Conference, Las Vegas, NV, 2019. Aristotle’s Rhetoric and the 21st Century Testifying Expert, Kentucky Society CPAs, 2019 Business Valuation and Litigation Conference, Louisville, KY, 2019. Flip Sides of the Same Coin: Working with and Against the U.S. Prosecuting Attorney, American Accounting Association, 2019 Forensic Accounting Conference, St. Louis, MO, 2019. Finding Hidden Assets in Divorce, AICPA 2018 Forensic and Valuation Services Conference, Atlanta, GA, 2018. The Art of Persuasion: Aristotle’s Rhetoric and the 21st Century Testifying Expert, 2018 Joint ASA Advanced Business Valuation and International Appraisers Conference, Anaheim, CA, 2018. Accounting in Extraordinary Times, MOCPA Firm/Educator Summit, Columbia, MO, 2018. Accounting in Extraordinary Times, Nebraska Society of CPAs, 17th Annual Fall Conference, LaVista, NE, 2017. The Case of the Conniving CFO, Virginia Society of CPAs, 2017 Business Valuation, Fraud & Litigation Services Conference, Richmond, VA, 2017. Ethical Considerations in Business, American Red Cross Planned Giving Advisory Council, St. Louis, MO, 2017. Effective Management Interviews and Financial Analysis, AICPA 2016 Forensic and Valuation Services Conference, Nashville, TN, 2016. 4 The Art & Science of Convincing Expert Testimony, AICPA 2016 Forensic and Valuation Services Conference, Nashville, TN, 2016. The Case of Controlling CFO, ACFE Student Organization, University of Missouri, Columbia, MO, 2016. Issues in Accounting Ethics, Institute of Internal Auditors, St. Louis, MO, 2016. A Case Study in CFO Fraud, FICPA Fraud & Forensics Conference, Fort Lauderdale, FL, 2016. A Psychology of the Fraudster, 2015 MSCPA Fraud & Forensic Accounting Conference, St. Louis, MO, 2015. Embezzlement Case Walk-Through, AICPA 2015 Forensic and Valuation Services Conference, Las Vegas, NV, 2015. Common Sense Issues in Cost of Capital: V = I/R-G, AICPA 2015 Forensic and Valuation Services Conference, Las Vegas, NV, 2015. An Overview of Forensic Accounting, Kentucky Society of CPAs, Fraud & Forensic Conference, Louisville, KY, 2015. Key Compliance Issues in Family Law Engagements, AICPA Family Law Conference, Las Vegas, NV, 2015. Direct and Indirect Methods of Income Reconstruction: Tools for the Forensic Accountant, Kentucky Society of CPAs, 2014 Fraud and Forensic Accounting Conference, Louisville, KY, 2014. Direct and Indirect Methods of Income Reconstruction: Tools for the Forensic Accountant, FICPA 2014 Valuation, Forensic Accounting and Litigation Services Conference, Fort Lauderdale, FL, 2014. Direct and Indirect Methods of Income Reconstruction: Tools for the Forensic Accountant, AICPA 2013 Forensic and Valuation Services Conference, Las Vegas, NV, 2013. Valuation Conundrums: Getting the Elephant up on the Table, AICPA 2013 Forensic and Valuation Services Conference, Las Vegas, NV, 2013. Lost in a Lost Profits Fog: Making Sense of Lost Profits Calculations, New Jersey Business Valuation, Forensic Investigation & Litigation Services Conference, Edison, NJ, 2013. Concepts and Issues in Measuring Damages in Personal Injury and Wrongful Death Cases, FICPA 2013 Valuation, Forensic Accounting and Litigation Services Conference, Fort Lauderdale, FL, 2013. Calculations of Value in Litigation: Are You Cruisin for a Bruisin? (MSCPA) Forensic and Valuation Services Conference, St. Louis, MO, 2012. Best Practices in Time & Billing Techniques in an FVS Practice, AICPA 2012 Forensic and Valuation Services Conference, Orlando, FL, 2012. Calculations of Value vs. Conclusions of Value: Are You Cruisin for a Bruisin? AICPA 2012 Forensic and Valuation Services Conference, Orlando, FL, 2012. Family Law: Finding Hidden Assets, Understanding Tax Returns and Financial Statements and Discovering Hidden Assets Webinar, 2012. 5 Avoiding a Red Card and Staying in the Game: Strategies to Protect Your Opinion from Exclusion, Kentucky Society of CPAs Fraud & Forensic Conference, Louisville, KY, 2012. Engagement Letter Considerations, Missouri Society of Certified Public Accountants (MSCPA) Fraud & Forensic Conference, St. Louis, MO, 2011. Finding Freud in Fraud: A Psychology of the Fraudster, Leading Edge Alliance 2011 Chicago Conference, Chicago, IL, 2011. Engagement Letters, AICPA 2011 Family Law Conference, Las Vegas, NV, 2011. Key Considerations in Family Law Engagements, AICPA 2011 Family Law Conference, Las Vegas, NV, 2011. Fact or Fiction: Emerging Issues in the Authenticity of Electronically Stored Information, FICPA 2011 Valuation and Litigation Services Conference, Fort Lauderdale, FL, 2011. Psychology of the Fraudster, Missouri Society of Certified Public Accountants (MSCPA) Fraud & Forensics Conference, St. Louis, MO, 2010. Reconciling Values & Report Writing, AICPA National Business Valuation Conference, Washington, D.C., 2010. Caught in the Crossfire – The Expert Witness for Valuation (with Apologies to Stevie Ray Vaughan), AICPA National Business Valuation Conference, Washington, D.C., 2010. Playing for Keeps: Navigating the Section 6695A Appraiser Penalties, AICPA National Business Valuation Conference, Washington, D.C., 2010. One Toe over the Line: Valuation Considerations in Tax Practice, AICPA National Tax Conference, Washington, D.C., 2010. Testifying at Deposition and Trial: Providing Your Opinions, AICPA National Forensic Accounting Conference, Boston, MA, 2010. “Is it Real or is it Memorex?” Emerging Issues in Electronic Discovery, AICPA, Webinar Roundtable, 2010. Appraisers in a Choke Hold: Regulatory and Ethical Issues for Valuation Analysts in Tax Valuations, NACVA and the IBA 2010 Annual Consultants’ Conference, Miami, FL, 2010. Bobbin’ and Weavin’: How to Avoid the Knockout Punch of the Appraiser Penalties under Section 6695A, AICPA, Webinar Roundtable, 2010. Lost in a Lost Profits Fog on Such a Grey Day: Making Sense of Lost Profits Calculations, CPA Associates International, Webinar Roundtable, 2010. AICPA Business Valuation Standards: What? They Apply to Me?, Missouri Society of Certified Public Accountants (MSCPA) Business Valuation Conference, St. Louis, MO, 2009. Personal Foul: Roughing the Expert – How to Avoid Exclusion at Trial, Missouri Society of Certified Public Accountants (MSCPA) Fraud & Forensics Conference, St. Louis, MO, 2009. 6 “You Can’t Always Get What You Want…” Understanding & Identifying Fraud, InfraGard, St. Louis, MO, 2009. “Is it Real or is it Memorex?” Emerging Issues in Electronic Discovery, AICPA National Business Valuation Conference, San Francisco, CA, 2009. “Is it Real or is it Memorex?” Emerging Issues in Electronic Discovery, AICPA National Forensic Accounting Conference, Orlando, FL, 2009. “Is it Real or is it Memorex?” Emerging Issues in Electronically Stored Information (ESI), Law Education Institute, 26th Annual National CLE Conference, Vail, CO, 2009. “I Feel the Earth Move Under My Feet…” The Shifting Landscape and its Effect on the Testifying Forensic Expert, 9th Annual VSCPA Business Valuation, Fraud and Litigation Services Conference, Virginia Beach, VA, 2008. AICPA Business Valuation Standards: What? They Apply To Me?, FICPA 23rd Annual Accounting Show, Fort Lauderdale, FL, 2008. AICPA Business Valuation Standards: What? They Apply To Me?, Florida Accounting and Business Expo, Orlando, FL, 2008. Imposter or The Real McCoy? Emerging Issues in E-Discovery, National Litigation Support Services Association, Las Vegas, NV, 2008. “That’s for Me to Know and You to Find Out…” Emerging Issues in E-Discovery, Law Education Institute, 25th Annual National CLE Conference, Vail, CO, 2008. Appraisers in a Choke Hold? A Review of PPA Provisions Affecting Tax Valuations, Law Education Institute, 25th Annual National CLE Conference, Vail, CO, 2008. “That’s for Me to Know and You to Find Out…” Emerging Issues in E-Discovery, AICPA National Business Valuation Conference, New Orleans, LA, 2007. AICPA Business Valuation Standards and Professional Ethics Revisions, CPA Associates Business Valuation and Litigation Conference, Atlanta, GA, 2007. How to Create Value in Your Professional Practice, ACEC – Missouri Annual Conference, St. Louis, MO, 2007. Electronic Discovery & Evidence Spoliation, AICPA/ASA National Business Valuation Conference, Las Vegas, NV, 2005. How to Create Value in Your Professional Practice, ACEC – Illinois Succession Planning Conference, Lisle, IL, 2005. Loss of Business Value v. Lost Profits Damages: Avoiding the Double Dip, AICPA Fraud and Litigation Conference, Dallas, TX, 2005. Discount Rate Issues: An Advanced Workshop for the Seasoned Damages Expert, AICPA Fraud and Litigation Conference, Dallas, TX, 2005. How to Avoid Exclusion of Your Expert Report, CPA Associates International, Chicago, IL, 2005. Valuation of Professional Practices, AICPA National Business Valuation Conference, Orlando, FL, 2004. 7 AICPA Statement on Standards for Valuation Services No. 1, CPA Associates International, Washington, D.C., 2004. Lost Profits Damage Analysis, Florida Institute of Certified Public Accountants, Ft. Lauderdale, FL, 2004. AICPA Proposed Statement on Standards for Valuation Services No. 1, CPA Associates International, Baltimore, MD, 2003. Lost Profits Damages, Illinois CPA Foundation, Chicago, IL, 2002. Lost Profits Damages, AICPA National Business Valuation Conference, Las Vegas, NV, 2001. Front FLP's and Back FLP's: The Role of Family Limited Partnerships in Estate Planning, University of Missouri Continuing Legal Education Program, St. Louis, MO, 2000. Critical Issues in Valuation Engagements, University of Missouri Continuing Legal Education Program, St. Louis, MO, 1999. Substantiating Valuation Discounts, National Association of Certified Valuation Analysts, Annual Conference, Baltimore, MD, 1996. CIVIC AFFILIATIONS Cardinal Glennon Children's Medical Center President - Board of Governors (2012-2014) Member - Board of Governors (2000-present) President - Development Board (1997-1999) Chair - Phantom Benefit for Kids (1993) Chair - Columbia Golf Tournament (1990, 1991) Member - Planning and Corporate Underwriting Committees, Bob Costas Benefit (1990- 2015) Member - Development Board (1989-1999) St. Louis University Chair – Department of Accounting Dean’s Advisory Board (2011-2014) Member – Department of Accounting Dean’s Advisory Board (2007-present) Aquinas Institute of Theology Member – Board of Trustees (2009-2012) Pediatric Research Institute at Cardinal Glennon Children's Hospital President - Board of Directors (1998-1999) Catholic Charities of St. Louis Chair - Board of Directors (2004-2007) Chair - Executive Committee (2002-2004) Treasurer - Board of Directors (1999-2002) Member - Strategic Planning Committee (1997-2002) Member - Board of Directors (1997-2007) Missouri Athletic Club Member - Finance Committee (2011-2012) Member - Nominating Committee (1991, 1998, 2003) Member - Long-Range Planning Committee (1991-1994) 8 St. Francis Xavier (College) Church Chairman and Founding Member - Endowment Committee (1997-2001) Visitation Academy of St. Louis Member - Board of Trustees (2001-2004) President - Red and White Club (1999-2000) SSM Healthcare, Inc. Board of Directors (2013-2014) SSM Health Ministries Board of Directors (2013-2014) Exhibit B  Estimated Retail Sales of Intrastate Telephone Service to Renton Residents [1]  Estimated Retail Value of Airtime Sold by Third Party Retailers  Estimated Tax Due @ 6%  Estimated Retail Sales of Intrastate Telephone Service to Renton Residents [2]  TRS Multiplier [2]  Estimated Retail Value of Airtime Sold by Third Party Retailers [2]  Total TRS Estimated Tax Base  Estimated Tax Due @ 6%  Difference Due to Zip Code Population Exclusion Error [3]  Difference Due to Inclusion of Estimated  Retail Value of Airtime Sold by Third Party Retailers  Total Difference 200720,905$                                     ‐$                                   1,254$              200724,347$                          4.56 110,912$                      135,259$          8,116$             1,147$                  5,714$                                6,861$                   200830,637                                       ‐                                     1,838                200835,608                            4.88 173,851                        209,459            12,568             1,754                    8,975                                  10,729                   200944,382                                       ‐                                     2,663                200951,396                            4.56 234,137                        285,533            17,132             2,338                    12,131                                14,469                   201072,384                                       ‐                                     4,343                201083,868                            4.88 409,472                        493,340            29,600             4,053                    21,204                                25,257                   201194,899                                       ‐                                     5,694                2011110,076                          3.76 414,096                        524,172            31,450             4,336                    21,420                                25,756                   2012116,661                                     ‐                                     7,000                2012135,767                          3.17 429,928                        565,695            33,942             4,776                    22,166                                26,942                   201355,348                                       ‐                                     3,321                201364,356                            2.70 173,998                        238,354            14,301             2,002                    8,979                                  10,980                   435,216$                                   ‐$                                   26,113$            505,417$                        1,946,395$                   2,451,812$       147,109$         20,407$                100,589$                            120,996$               Notes:[1] See Schedule 4.[2] See Schedule 5.[3] See Schedule 3.  Assumptions:Anders' calculation incorporates all of the assumptions put forth by TRS with the exception of the following:  ‐Anders' calculation revises the calculation of Renton population ratio to include the population of zip code 98178; and  ‐Anders' calculation excludes the multiplier to estimate the retail value of airtime sold by third party retailers in accordance with RCW 35A.82.060.Tax Calculation Per Anders CPAs & Advisors, LLP Tax Calculation Per Tax Recovery Services, LLC (TRS)TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals HearingSchedule 1Tax Calculation ComparisonDifference 2007200820092010201120122013City of Renton 60,290 78,780 83,650 90,927 92,590 93,910 95,54020072008200920102011201220139805520,151 19,888 20,228 20,603 19,863 19,890 20,1909805630,295 30,562 31,751 31,912 32,733 33,200 32,960980579,813 9,768 10,621 11,305 11,631 11,680 11,7609805841,080 40,762 41,061 41,326 40,371 40,450 40,8009805932,156 32,741 33,745 34,618 35,108 35,770 36,470ZIP Population Total per TPS: 133,495 133,721 137,406 139,764 139,706 140,990 142,1809817821,974 21,695 21,717 22,174 22,343 23,090 23,140ZIP Population Total Corrected:155,469 155,416 159,123 161,938 162,049 164,080 165,3202007200820092010201120122013City of Renton Population / ZIP Population Total Per TRS:45.16% 58.91% 60.88% 65.06% 66.27% 66.61% 67.20%City of Renton Population / ZIP Population Total Corrected:38.78% 50.69% 52.57% 56.15% 57.14% 57.23% 57.79% Percentage of Change: 14.13% 13.96% 13.65% 13.69% 13.79% 14.07% 14.00%Assumption Sources:City of Renton: Per TRS Assessment Schedule, the link in TRS's assessment schedule is not operablePopulation by ZIP Code:https://www.unitedstateszipcodes.orgCity of Renton Estimated Population PercentageTracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals HearingSchedule 2Calculation of Renton Estimated Population Percentage ‐ ZIP Code Population Exclusion Error CorrectedPopulation by ZIP CodePopulation for the City of Renton  Year  Tax Recovery Services, LLC Tax Calculation [1]  Tax Calculation ‐ZIP Code Error Corrected [2]  Difference Due to Zip Code Population Exclusion Error 2007 8,116                  6,968                  1,147                 2008 12,568                10,813                1,754                 2009 17,132                14,794                2,338                 2010 29,600                25,547                4,053                 2011 31,450                27,114                4,336                 2012 33,942                29,165                4,776                 2013 14,301                12,299                2,002                 Total: 147,109$            126,702$            20,407$             [2] See Schedule 4.Schedule 3TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals Hearing Difference Due to Zip Code Population Exclusion ErrorNotes:[1] See Schedule 5. ABCDA x (1‐B) x C x D = E F G F/G = HE x H = I  E + I = J J x 6% = K  Month  Year  Retail Sales [1]   Data  Usage %  [2]   In‐State  % [3]   Population  % [4]   Estimated Retail  Sales of Intrastate  Telephone Service to  Renton Residents   Wholesale  Airtime %  [5]   Retail  Airtime %  [5]  TRS Multiplier   Estimated Retail  Value of Airtime  Sold by Third  Party Retailers   Total TRS Estimated Tax  Base Calculated   Estimated Tax Due  @ 6%  1 2007 5,169.09$           0.00% 84% 38.78%1,685.22$                     82% 18% 4.56 7,677.11$            9,362.33$                              561.74$                       2 2007 4,739.22             0.00% 84% 38.78%1,545.07                       82% 18% 4.56 7,038.67              8,583.75                                515.02                          3 2007 5,424.01             0.00% 84% 38.78%1,768.33                       82% 18% 4.56 8,055.72              9,824.05                                589.44                          4 2007 4,699.11             0.00% 84% 38.78%1,532.00                       82% 18% 4.56 6,979.10              8,511.10                                510.67                          5 2007 4,004.25             0.00% 84% 38.78%1,305.46                       82% 18% 4.56 5,947.10              7,252.56                                435.15                          6 2007 5,128.96             0.00% 84% 38.78%1,672.14                       82% 18% 4.56 7,617.51              9,289.65                                557.38                          7 2007 4,979.03             0.00% 84% 38.78%1,623.26                       82% 18% 4.56 7,394.84              9,018.09                                541.09                          8 2007 4,739.00             0.00% 84% 38.78%1,545.00                       82% 18% 4.56 7,038.35              8,583.35                                515.00                          9 2007 5,968.89             0.00% 84% 38.78%1,945.97                       82% 18% 4.56 8,864.97              10,810.94                              648.66                          10 2007 5,233.94             0.00% 84% 38.78%1,706.36                       82% 18% 4.56 7,773.43              9,479.79                                568.79                          11 2007 7,188.53             0.00% 84% 38.78%2,343.60                       82% 18% 4.56 10,676.38            13,019.97                              781.20                          12 2007 6,849.53             0.00% 84% 38.78%2,233.07                       82% 18% 4.56 10,172.90            12,405.97                              744.36                          2007 Subtotal: 64,123.56           20,905.48                     95,236.08            116,141.56                            6,968.49                      1 2008 4,697.91             0.00% 84% 50.69%2,002.01                       83% 17% 4.88 9,774.51              11,776.52                              706.59                          2 2008 6,189.85             0.00% 84% 50.69%2,637.80                       83% 17% 4.88 12,878.66            15,516.45                              930.99                          3 2008 6,341.61             0.00% 84% 50.69%2,702.47                       83% 17% 4.88 13,194.41            15,896.88                              953.81                          4 2008 5,717.74             0.00% 84% 50.69%2,436.61                       83% 17% 4.88 11,896.38            14,332.99                              859.98                          5 2008 6,154.40             0.00% 84% 50.69%2,622.69                       83% 17% 4.88 12,804.90            15,427.59                              925.66                          6 2008 5,669.71             0.00% 84% 50.69%2,416.14                       83% 17% 4.88 11,796.45            14,212.59                              852.76                          7 2008 5,801.63             0.00% 84% 50.69%2,472.36                       83% 17% 4.88 12,070.92            14,543.28                              872.60                          8 2008 5,653.59             0.00% 84% 50.69%2,409.27                       83% 17% 4.88 11,762.91            14,172.18                              850.33                          9 2008 6,098.66             0.00% 84% 50.69%2,598.94                       83% 17% 4.88 12,688.93            15,287.86                              917.27                          10 2008 6,140.71             0.00% 84% 50.69%2,616.86                       83% 17% 4.88 12,776.42            15,393.27                              923.60                          11 2008 6,257.65             0.00% 84% 50.69%2,666.69                       83% 17% 4.88 13,019.72            15,686.41                              941.18                          12 2008 7,170.36             0.00% 84% 50.69%3,055.64                       83% 17% 4.88 14,918.72            17,974.36                              1,078.46                      2008 Subtotal: 71,893.82           30,637.47                     149,582.93         180,220.39                            10,813.22                    1 2009 7,268.45             0.00% 84% 52.57%3,212.30                       82% 18% 4.56 14,633.80            17,846.10                              1,070.77                      2 2009 5,704.62             0.00% 84% 52.57%2,521.16                       82% 18% 4.56 11,485.29            14,006.46                              840.39                          3 2009 7,910.16             0.00% 84% 52.57%3,495.90                       82% 18% 4.56 15,925.78            19,421.68                              1,165.30                      4 2009 7,861.30             0.00% 84% 52.57%3,474.31                       82% 18% 4.56 15,827.41            19,301.72                              1,158.10                      5 2009 9,268.98             0.00% 84% 52.57%4,096.43                       82% 18% 4.56 18,661.53            22,757.97                              1,365.48                      6 2009 8,823.07             0.00% 84% 52.57%3,899.36                       82% 18% 4.56 17,763.77            21,663.13                              1,299.79                      7 2009 8,977.98             0.00% 84% 52.57%3,967.83                       82% 18% 4.56 18,075.65            22,043.48                              1,322.61                      8 2009 8,726.24             0.00% 84% 52.57%3,856.57                       82% 18% 4.56 17,568.82            21,425.39                              1,285.52                      9 2009 9,247.06             0.00% 84% 52.57%4,086.75                       82% 18% 4.56 18,617.40            22,704.15                              1,362.25                      10 2009 8,397.17             0.00% 84% 52.57%3,711.14                       82% 18% 4.56 16,906.29            20,617.43                              1,237.05                      11 2009 8,347.12             0.00% 84% 52.57%3,689.02                       82% 18% 4.56 16,805.52            20,494.54                              1,229.67                      12 2009 9,889.68             0.00% 84% 52.57%4,370.75                       82% 18% 4.56 19,911.21            24,281.96                              1,456.92                      2009 Subtotal: 100,421.83        44,381.52                     202,182.48         246,564.00                            14,793.84                    1 2010 9,909.84             3.96% 86% 56.15%4,581.37                       83% 17% 4.88 22,367.88            26,949.26                              1,616.96                      2 2010 9,560.18             3.96% 86% 56.15%4,419.72                       83% 17% 4.88 21,578.65            25,998.38                              1,559.90                      3 2010 11,286.07           3.96% 86% 56.15%5,217.61                       83% 17% 4.88 25,474.22            30,691.84                              1,841.51                      4 2010 11,046.66           3.96% 86% 56.15%5,106.93                       83% 17% 4.88 24,933.84            30,040.77                              1,802.45                      5 2010 11,207.88           3.96% 86% 56.15%5,181.46                       83% 17% 4.88 25,297.74            30,479.20                              1,828.75                      6 2010 11,613.78           3.96% 86% 56.15%5,369.11                       83% 17% 4.88 26,213.91            31,583.03                              1,894.98                      7 2010 14,684.25           3.96% 86% 56.15%6,788.61                       83% 17% 4.88 33,144.39            39,933.00                              2,395.98                      8 2010 14,213.64           3.96% 86% 56.15%6,571.04                       83% 17% 4.88 32,082.16            38,653.20                              2,319.19                      9 2010 14,087.76           3.96% 86% 56.15%6,512.85                       83% 17% 4.88 31,798.03            38,310.88                              2,298.65                      10 2010 14,881.56           3.96% 86% 56.15%6,879.83                       83% 17% 4.88 33,589.74            40,469.57                              2,428.17                      11 2010 15,596.53           3.96% 86% 56.15%7,210.36                       83% 17% 4.88 35,203.53            42,413.89                              2,544.83                      12 2010 18,483.44           3.96% 86% 56.15%8,545.00                       83% 17% 4.88 41,719.69            50,264.68                              3,015.88                      2010 Subtotal: 156,571.59        72,383.91                     353,403.79         425,787.70                            25,547.26                    1 2011 19,250.07           18.65% 84% 57.14%7,513.32                       79% 21% 3.76 28,264.39            35,777.70                              2,146.66                      2 2011 17,840.34           18.65% 84% 57.14%6,963.10                       79% 21% 3.76 26,194.52            33,157.61                              1,989.46                      3 2011 19,446.29           18.65% 84% 57.14%7,589.90                       79% 21% 3.76 28,552.49            36,142.39                              2,168.54                      4 2011 19,406.33           18.65% 84% 57.14%7,574.31                       79% 21% 3.76 28,493.82            36,068.12                              2,164.09                      5 2011 21,274.91           18.65% 84% 57.14%8,303.61                       79% 21% 3.76 31,237.41            39,541.02                              2,372.46                      6 2011 19,373.00           18.65% 84% 57.14%7,561.30                       79% 21% 3.76 28,444.88            36,006.18                              2,160.37                      7 2011 20,050.17           18.65% 84% 57.14%7,825.60                       79% 21% 3.76 29,439.15            37,264.75                              2,235.88                      8 2011 22,034.95           18.65% 84% 57.14%8,600.26                       79% 21% 3.76 32,353.35            40,953.61                              2,457.22                      9 2011 22,031.15           18.65% 84% 57.14%8,598.78                       79% 21% 3.76 32,347.77            40,946.55                              2,456.79                      10 2011 20,068.65           18.65% 84% 57.14%7,832.81                       79% 21% 3.76 29,466.29            37,299.10                              2,237.95                      11 2011 21,086.77           18.65% 84% 57.14%8,230.18                       79% 21% 3.76 30,961.17            39,191.35                              2,351.48                      12 2011 21,280.55           18.65% 84% 57.14%8,305.82                       79% 21% 3.76 31,245.69            39,551.50                              2,373.09                      2011 Subtotal: 243,143.18        94,898.98                     357,000.91         451,899.89                            27,113.99                    1 2012 22,471.67           25.08% 83% 57.23%8,034.36                       76% 24% 3.17 25,442.13            33,476.49                              2,008.59                      2 2012 23,240.80           25.08% 83% 57.23%8,309.35                       76% 24% 3.17 26,312.93            34,622.28                              2,077.34                      3 2012 24,440.13           25.08% 83% 57.23%8,738.15                       76% 24% 3.17 27,670.80            36,408.95                              2,184.54                      4 2012 24,878.73           25.08% 83% 57.23%8,894.96                       76% 24% 3.17 28,167.38            37,062.34                              2,223.74                      5 2012 24,008.37           25.08% 83% 57.23%8,583.78                       76% 24% 3.17 27,181.97            35,765.75                              2,145.94                      6 2012 26,369.32           25.08% 83% 57.23%9,427.90                       76% 24% 3.17 29,855.00            39,282.90                              2,356.97                      7 2012 28,647.22           25.08% 83% 57.23%10,242.32                     76% 24% 3.17 32,434.01            42,676.33                              2,560.58                      8 2012 28,083.45           25.08% 83% 57.23%10,040.75                     76% 24% 3.17 31,795.72            41,836.47                              2,510.19                      9 2012 29,101.02           25.08% 83% 57.23%10,404.57                     76% 24% 3.17 32,947.80            43,352.37                              2,601.14                      10 2012 31,179.97           25.08% 83% 57.23%11,147.86                     76% 24% 3.17 35,301.56            46,449.42                              2,786.97                      11 2012 30,947.93           25.08% 83% 57.23%11,064.90                     76% 24% 3.17 35,038.85            46,103.75                              2,766.22                      12 2012 32,926.16           25.08% 83% 57.23%11,772.18                     76% 24% 3.17 37,278.57            49,050.75                              2,943.05                      2012 Subtotal: 326,294.77        116,661.07                   369,426.73         486,087.80                            29,165.27                    1 2013 34,557.06           38.42% 81% 57.79%9,972.49                       73% 27% 2.70 26,962.66            36,935.15                              2,216.11                      2 2013 34,616.58           38.42% 81% 57.79%9,989.67                       73% 27% 2.70 27,009.10            36,998.76                              2,219.93                      3 2013 37,217.92           38.42% 81% 57.79%10,740.36                     73% 27% 2.70 29,038.76            39,779.12                              2,386.75                      4 2013 36,232.29           38.42% 81% 57.79%10,455.93                     73% 27% 2.70 28,269.73            38,725.66                              2,323.54                      5 2013 49,168.94           38.42% 81% 57.79%14,189.19                     73% 27% 2.70 38,363.37            52,552.56                              3,153.15                      2013 Subtotal: 191,792.79        55,347.64                     149,643.62         204,991.26                            12,299.48                     Grand Total: 1,154,241.54$   435,216.06$                 1,676,476.53$    2,111,692.59$                      126,701.56$               Tax Recovery Services, LLC Assumptions: [2] TRS reduces the direct sales amounts for the portion of the sales attributable to data usage, which is not taxable. See Schedule 7. [3] TRS limits the taxable direct sales data amounts to sales attributable to intrastate usage. See Schedule 8. [5] TRS estimates retail value of airtime sold by third party retailers using nationwide TracFone Wireless, Inc. estimates of airtime usage for the United States of America. [1] TRS utilizes direct sales data from area codes 98055, 98056, 98057, 98058, 98059, and 98178 as detailed in Schedule 6. [4] TRS limits the taxable direct sales data amounts to its calculation of sales attributable to the City of Renton as calculated in Schedule 2. TRS erroneously excludes the population of ZIP Code 98178 from its calculation of population %. This error is  corrected in this column. Tax Calculation Per Tax Recovery Services, LLC ‐ ZIP Code Population Exclusion Error Corrected Schedule 4 TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals Hearing ABCDA x (1‐B) x C x D = E F G F/G = HE x H = I  E + I = J J x 6% = K  Month  Year  Retail Sales [1]   Data  Usage %  [2]   In‐State  % [3]   Population  % [4]   Estimated Retail  Sales of Intrastate  Telephone Service to  Renton Residents   Wholesale  Airtime %  [5]   Retail  Airtime %  [5]  TRS Multiplier   Estimated Retail  Value of Airtime  Sold by Third  Party Retailers   Total TRS Estimated Tax  Base Calculated   Estimated Tax Due  @ 6%  1 2007 5,169.09$           0.00% 84% 45.16%1,962.62$                     82% 18% 4.56 8,940.81$            10,903.42$                           654.21$                       2 2007 4,739.22             0.00% 84% 45.16%1,799.40                       82% 18% 4.56 8,197.28              9,996.68                               599.80                          3 2007 5,424.01             0.00% 84% 45.16%2,059.41                       82% 18% 4.56 9,381.73              11,441.14                             686.47                          4 2007 4,699.11             0.00% 84% 45.16%1,784.17                       82% 18% 4.56 8,127.90              9,912.07                               594.72                          5 2007 4,004.25             0.00% 84% 45.16%1,520.35                       82% 18% 4.56 6,926.02              8,446.37                               506.78                          6 2007 5,128.96             0.00% 84% 45.16%1,947.38                       82% 18% 4.56 8,871.40              10,818.78                             649.13                          7 2007 4,979.03             0.00% 84% 45.16%1,890.45                       82% 18% 4.56 8,612.07              10,502.52                             630.15                          8 2007 4,739.00             0.00% 84% 45.16%1,799.32                       82% 18% 4.56 8,196.90              9,996.21                               599.77                          9 2007 5,968.89             0.00% 84% 45.16%2,266.29                       82% 18% 4.56 10,324.20            12,590.48                             755.43                          10 2007 5,233.94             0.00% 84% 45.16%1,987.24                       82% 18% 4.56 9,052.98              11,040.22                             662.41                          11 2007 7,188.53             0.00% 84% 45.16%2,729.36                       82% 18% 4.56 12,433.77            15,163.13                             909.79                          12 2007 6,849.53             0.00% 84% 45.16%2,600.65                       82% 18% 4.56 11,847.41            14,448.06                             866.88                          2007 Subtotal: 64,123.56           24,346.64                     110,912.45         135,259.09                           8,115.55                      1 2008 4,697.91             0.00% 84% 58.91%2,326.82                       83% 17% 4.88 11,360.34            13,687.15                             821.23                          2 2008 6,189.85             0.00% 84% 58.91%3,065.76                       83% 17% 4.88 14,968.10            18,033.86                             1,082.03                      3 2008 6,341.61             0.00% 84% 58.91%3,140.92                       83% 17% 4.88 15,335.08            18,476.00                             1,108.56                      4 2008 5,717.74             0.00% 84% 58.91%2,831.93                       83% 17% 4.88 13,826.46            16,658.38                             999.50                          5 2008 6,154.40             0.00% 84% 58.91%3,048.20                       83% 17% 4.88 14,882.38            17,930.57                             1,075.83                      6 2008 5,669.71             0.00% 84% 58.91%2,808.14                       83% 17% 4.88 13,710.31            16,518.45                             991.11                          7 2008 5,801.63             0.00% 84% 58.91%2,873.48                       83% 17% 4.88 14,029.32            16,902.79                             1,014.17                      8 2008 5,653.59             0.00% 84% 58.91%2,800.15                       83% 17% 4.88 13,671.33            16,471.49                             988.29                          9 2008 6,098.66             0.00% 84% 58.91%3,020.59                       83% 17% 4.88 14,747.59            17,768.18                             1,066.09                      10 2008 6,140.71             0.00% 84% 58.91%3,041.42                       83% 17% 4.88 14,849.27            17,890.69                             1,073.44                      11 2008 6,257.65             0.00% 84% 58.91%3,099.34                       83% 17% 4.88 15,132.05            18,231.39                             1,093.88                      12 2008 7,170.36             0.00% 84% 58.91%3,551.39                       83% 17% 4.88 17,339.14            20,890.53                             1,253.43                      2008 Subtotal: 71,893.82           35,608.11                     173,851.38         209,459.49                           12,567.57                    1 2009 7,268.45             0.00% 84% 60.88%3,720.00                       82% 18% 4.56 16,946.67            20,666.67                             1,240.00                      2 2009 5,704.62             0.00% 84% 60.88%2,919.63                       82% 18% 4.56 13,300.54            16,220.17                             973.21                          3 2009 7,910.16             0.00% 84% 60.88%4,048.43                       82% 18% 4.56 18,442.84            22,491.27                             1,349.48                      4 2009 7,861.30             0.00% 84% 60.88%4,023.42                       82% 18% 4.56 18,328.93            22,352.35                             1,341.14                      5 2009 9,268.98             0.00% 84% 60.88%4,743.88                       82% 18% 4.56 21,610.99            26,354.86                             1,581.29                      6 2009 8,823.07             0.00% 84% 60.88%4,515.66                       82% 18% 4.56 20,571.33            25,086.99                             1,505.22                      7 2009 8,977.98             0.00% 84% 60.88%4,594.94                       82% 18% 4.56 20,932.51            25,527.45                             1,531.65                      8 2009 8,726.24             0.00% 84% 60.88%4,466.10                       82% 18% 4.56 20,345.57            24,811.67                             1,488.70                      9 2009 9,247.06             0.00% 84% 60.88%4,732.66                       82% 18% 4.56 21,559.88            26,292.54                             1,577.55                      10 2009 8,397.17             0.00% 84% 60.88%4,297.68                       82% 18% 4.56 19,578.33            23,876.01                             1,432.56                      11 2009 8,347.12             0.00% 84% 60.88%4,272.07                       82% 18% 4.56 19,461.63            23,733.70                             1,424.02                      12 2009 9,889.68             0.00% 84% 60.88%5,061.55                       82% 18% 4.56 23,058.17            28,119.72                             1,687.18                      2009 Subtotal: 100,421.83        51,396.01                     234,137.39         285,533.40                           17,132.00                    1 2010 9,909.84             3.96% 86% 65.06%5,308.22                       83% 17% 4.88 25,916.62            31,224.84                             1,873.49                      2 2010 9,560.18             3.96% 86% 65.06%5,120.93                       83% 17% 4.88 25,002.17            30,123.10                             1,807.39                      3 2010 11,286.07           3.96% 86% 65.06%6,045.40                       83% 17% 4.88 29,515.79            35,561.19                             2,133.67                      4 2010 11,046.66           3.96% 86% 65.06%5,917.16                       83% 17% 4.88 28,889.68            34,806.84                             2,088.41                      5 2010 11,207.88           3.96% 86% 65.06%6,003.52                       83% 17% 4.88 29,311.31            35,314.83                             2,118.89                      6 2010 11,613.78           3.96% 86% 65.06%6,220.94                       83% 17% 4.88 30,372.83            36,593.77                             2,195.63                      7 2010 14,684.25           3.96% 86% 65.06%7,865.64                       83% 17% 4.88 38,402.85            46,268.49                             2,776.11                      8 2010 14,213.64           3.96% 86% 65.06%7,613.56                       83% 17% 4.88 37,172.09            44,785.65                             2,687.14                      9 2010 14,087.76           3.96% 86% 65.06%7,546.13                       83% 17% 4.88 36,842.89            44,389.02                             2,663.34                      10 2010 14,881.56           3.96% 86% 65.06%7,971.33                       83% 17% 4.88 38,918.86            46,890.20                             2,813.41                      11 2010 15,596.53           3.96% 86% 65.06%8,354.31                       83% 17% 4.88 40,788.68            49,142.99                             2,948.58                      12 2010 18,483.44           3.96% 86% 65.06%9,900.69                       83% 17% 4.88 48,338.65            58,239.33                             3,494.36                      2010 Subtotal: 156,571.59        83,867.84                     409,472.41         493,340.26                           29,600.42                    1 2011 19,250.07           18.65% 84% 66.27%8,714.91                       79% 21% 3.76 32,784.67            41,499.59                             2,489.98                      2 2011 17,840.34           18.65% 84% 66.27%8,076.70                       79% 21% 3.76 30,383.77            38,460.47                             2,307.63                      3 2011 19,446.29           18.65% 84% 66.27%8,803.75                       79% 21% 3.76 33,118.85            41,922.60                             2,515.36                      4 2011 19,406.33           18.65% 84% 66.27%8,785.66                       79% 21% 3.76 33,050.80            41,836.45                             2,510.19                      5 2011 21,274.91           18.65% 84% 66.27%9,631.60                       79% 21% 3.76 36,233.16            45,864.77                             2,751.89                      6 2011 19,373.00           18.65% 84% 66.27%8,770.57                       79% 21% 3.76 32,994.03            41,764.60                             2,505.88                      7 2011 20,050.17           18.65% 84% 66.27%9,077.14                       79% 21% 3.76 34,147.32            43,224.45                             2,593.47                      8 2011 22,034.95           18.65% 84% 66.27%9,975.69                       79% 21% 3.76 37,527.58            47,503.27                             2,850.20                      9 2011 22,031.15           18.65% 84% 66.27%9,973.97                       79% 21% 3.76 37,521.11            47,495.08                             2,849.70                      10 2011 20,068.65           18.65% 84% 66.27%9,085.50                       79% 21% 3.76 34,178.79            43,264.29                             2,595.86                      11 2011 21,086.77           18.65% 84% 66.27%9,546.43                       79% 21% 3.76 35,912.74            45,459.17                             2,727.55                      12 2011 21,280.55           18.65% 84% 66.27%9,634.15                       79% 21% 3.76 36,242.77            45,876.92                             2,752.62                      2011 Subtotal: 243,143.18        110,076.05                   414,095.61         524,171.66                           31,450.30                    1 2012 22,471.67           25.08% 83% 66.61%9,350.15                       76% 24% 3.17 29,608.81            38,958.95                             2,337.54                      2 2012 23,240.80           25.08% 83% 66.61%9,670.17                       76% 24% 3.17 30,622.22            40,292.39                             2,417.54                      3 2012 24,440.13           25.08% 83% 66.61%10,169.20                     76% 24% 3.17 32,202.46            42,371.66                             2,542.30                      4 2012 24,878.73           25.08% 83% 66.61%10,351.69                     76% 24% 3.17 32,780.36            43,132.06                             2,587.92                      5 2012 24,008.37           25.08% 83% 66.61%9,989.55                       76% 24% 3.17 31,633.57            41,623.12                             2,497.39                      6 2012 26,369.32           25.08% 83% 66.61%10,971.91                     76% 24% 3.17 34,744.37            45,716.28                             2,742.98                      7 2012 28,647.22           25.08% 83% 66.61%11,919.71                     76% 24% 3.17 37,745.75            49,665.46                             2,979.93                      8 2012 28,083.45           25.08% 83% 66.61%11,685.13                     76% 24% 3.17 37,002.92            48,688.05                             2,921.28                      9 2012 29,101.02           25.08% 83% 66.61%12,108.53                     76% 24% 3.17 38,343.68            50,452.21                             3,027.13                      10 2012 31,179.97           25.08% 83% 66.61%12,973.55                     76% 24% 3.17 41,082.91            54,056.46                             3,243.39                      11 2012 30,947.93           25.08% 83% 66.61%12,877.00                     76% 24% 3.17 40,777.18            53,654.18                             3,219.25                      12 2012 32,926.16           25.08% 83% 66.61%13,700.12                     76% 24% 3.17 43,383.70            57,083.82                             3,425.03                      2012 Subtotal: 326,294.77        135,766.71                   429,927.92         565,694.64                           33,941.68                    1 2013 34,557.06           38.42% 81% 67.20%11,595.53                     73% 27% 2.70 31,350.87            42,946.40                             2,576.78                      2 2013 34,616.58           38.42% 81% 67.20%11,615.50                     73% 27% 2.70 31,404.87            43,020.37                             2,581.22                      3 2013 37,217.92           38.42% 81% 67.20%12,488.37                     73% 27% 2.70 33,764.86            46,253.23                             2,775.19                      4 2013 36,232.29           38.42% 81% 67.20%12,157.65                     73% 27% 2.70 32,870.67            45,028.32                             2,701.70                      5 2013 49,168.94           38.42% 81% 67.20%16,498.50                     73% 27% 2.70 44,607.07            61,105.57                             3,666.33                      2013 Subtotal: 191,792.79        64,355.55                     173,998.33         238,353.88                           14,301.23                     Grand Total: 1,154,241.54$   505,416.91$                 1,946,395.50$    2,451,812.41$                      147,108.74$               Tax Recovery Services, LLC Assumptions: [2] TRS reduces the direct sales amounts for the portion of the sales attributable to data usage, which is not taxable. See Schedule 7. [3] TRS limits the taxable direct sales data amounts to sales attributable to intrastate usage. See Schedule 8. [5] TRS estimates retail value of airtime sold by third party retailers using nationwide TracFone Wireless, Inc. estimates of airtime usage for the United States of America. [4] TRS limits the taxable direct sales data amounts to its calculation of sales attributable to the City of Renton as calculated in Schedule 2. TRS erroneously excludes the population of ZIP Code 98178 from its calculation of population %. [1] TRS utilizes direct sales data from area codes 98055, 98056, 98057, 98058, 98059, and 98178 as detailed in Schedule 6. Tax Calculation Per Tax Recovery Services, LLC Schedule 5 TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals Hearing Date  APP Direct  Sales   Billing Platform  Sales   Total Retail  Sales  1/2007 5,169.09$           ‐$                       5,169.09$           2/2007 4,739.22             ‐                         4,739.22             3/2007 5,424.01             ‐                         5,424.01             4/2007 4,699.11             ‐                         4,699.11             5/2007 4,004.25             ‐                         4,004.25             6/2007 5,104.02            24.94                     5,128.96             7/2007 4,954.09            24.94                     4,979.03             8/2007 4,699.11            39.89                     4,739.00             9/2007 5,823.99            144.90                   5,968.89             10/2007 5,069.07            164.87                   5,233.94             11/2007 7,033.74            154.79                   7,188.53             12/2007 6,663.80            185.73                   6,849.53             1/2008 4,509.11            188.80                   4,697.91             2/2008 6,034.06            155.79                   6,189.85             3/2008 6,063.98            277.63                   6,341.61             4/2008 5,481.05            236.69                   5,717.74             5/2008 5,788.06            366.34                   6,154.40             6/2008 5,389.04            280.67                   5,669.71             7/2008 5,299.07            502.56                   5,801.63             8/2008 5,164.00            489.59                   5,653.59             9/2008 5,629.05            469.61                   6,098.66             10/2008 5,704.15            436.56                   6,140.71             11/2008 5,734.06            523.59                   6,257.65             12/2008 6,513.89            656.47                   7,170.36             1/2009 6,429.04            839.41                   7,268.45             2/2009 4,799.29            905.33                   5,704.62             3/2009 6,943.86            966.30                   7,910.16             4/2009 6,694.07            1,167.23               7,861.30             5/2009 8,283.75            985.23                   9,268.98             6/2009 7,658.78            1,164.29               8,823.07             7/2009 7,528.79            1,449.19               8,977.98             8/2009 7,473.90            1,252.34               8,726.24             9/2009 8,123.75            1,123.31               9,247.06             10/2009 7,033.91            1,363.26               8,397.17             11/2009 6,763.90            1,583.22               8,347.12             12/2009 8,018.56            1,871.12               9,889.68             1/2010 7,248.58            2,661.26               9,909.84             2/2010 6,968.85            2,591.33               9,560.18             3/2010 7,633.73            3,652.34               11,286.07           4/2010 7,448.66            3,598.00               11,046.66           5/2010 7,233.68            3,974.20               11,207.88           6/2010 7,048.75            4,565.03               11,613.78           7/2010 9,403.39            5,280.86               14,684.25           8/2010 8,598.46            5,615.18               14,213.64           9/2010 7,788.60            6,299.16               14,087.76           10/2010 7,718.54            7,163.02               14,881.56           11/2010 8,343.51            7,253.02               15,596.53           12/2010 9,843.49            8,639.95               18,483.44           1/2011 10,308.00          8,942.07               19,250.07           2/2011 8,708.49            9,131.85               17,840.34           3/2011 9,538.26            9,908.03               19,446.29           4/2011 9,163.37            10,242.96             19,406.33           5/2011 10,339.13          10,935.78             21,274.91           6/2011 8,612.20            10,760.80             19,373.00           7/2011 9,906.22            10,143.95             20,050.17           8/2011 11,505.90          10,529.05             22,034.95           9/2011 12,209.21          9,821.94               22,031.15           10/2011 11,624.94          8,443.71               20,068.65           11/2011 13,248.05          7,838.72               21,086.77           12/2011 13,538.70          7,741.85               21,280.55           1/2012 14,910.64          7,561.03               22,471.67           2/2012 15,007.85          8,232.95               23,240.80           3/2012 15,813.18          8,626.95               24,440.13           4/2012 16,001.78          8,876.95               24,878.73           5/2012 14,869.30          9,139.07               24,008.37           6/2012 16,809.25          9,560.07               26,369.32           7/2012 18,521.20          10,126.02             28,647.22           8/2012 17,725.40          10,358.05             28,083.45           9/2012 18,802.02          10,299.00             29,101.02           10/2012 18,583.55          12,596.42             31,179.97           11/2012 17,825.19          13,122.74             30,947.93           12/2012 19,256.51          13,669.65             32,926.16           1/2013 19,485.40          15,071.66             34,557.06           2/2013 20,032.77          14,583.81             34,616.58           3/2013 19,402.13          17,815.79             37,217.92           4/2013 17,944.04          18,288.25             36,232.29           5/2013 29,495.77          19,673.17             49,168.94           750,911.31$      403,330.23$         1,154,241.54$   Note:  TRS Includes sales from ZIP codes 98055, 98056, 98057, 98058, 98059,  and 98178, but excludes ZIP Code 98178 in its calculation of Renton's  population %. TracFone Wireless, Inc. / City of Renton  Utility Tax Assessment Appeals Hearing Schedule 6 Direct Sales Data for Area Codes 98055,  98056, 98057, 98058, 98059, and 98178 2007 2008 2009 2010 2011 2012 2013 20140.00% 0.00% 0.00% 3.96% 18.65% 25.08% 38.42% 41.77%Assumption:Data usage percentages are based on TracFone Wireless, Inc. nationwide data for the United States of America.TracFone Wireless, Inc. / City of Renton Utility Tax Schedule 7Data Usage Percentage for TracFone Wireless, Inc. 2007 2008 2009 2010 2011 2012 2013 2014Intrastate Percentage 84% 84% 84% 86% 84% 83% 81% 79%Interstate Percentage 15% 15% 15% 14% 16% 16% 17% 19%International Percentage 1% 1% 1% 0% 0% 1% 2% 1%Total: 100% 100% 100% 100% 100% 100% 100% 100%Assumption:Intrastate, Interstate, and International usage percentages are based on TracFone Wireless, Inc. nationwide data for the United States of America.TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Schedule 8Intrastate, Interstate, and International Usage Percentages for TracFone Wireless, Inc. Exhibit C  Interest Rate Calculated By  Authority  Interest End Date  Tax Base  Interest Calculated  Notes Tax Recovery Services, LLC Renton City Ordinance No. 5367 9/30/2019 147,109$      152,557$                 Actual Interest PaidTax Recovery Services, LLC Renton City Ordinance No. 5367 8/31/2017147,109$      114,311$                 Interest Per TRS Calculation Completed August, 2017Anders CPAs & Advisors, LLP State of Washington Methodology 11/6/2019 147,109$      30,426$ Interest Per Renton Ordinance No. 5944, See Schedule 2Note:This schedule has been prepared for comparison purposes only. It is not intended as a conclusion of interest owed by Tracfone Wireless, Inc.TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals Hearing Schedule 1Interest Methodology and Delay Comparison Tax Year2007200820092010201120122013TotalTotal Tax 8,115.55$ 12,567.57$ 17,132.00$ 29,600.42$ 31,450.30$ 33,941.68$ 14,301.23$ 147,108.74$ Interest Periods20086.41%20095%4.58%20103%3%2.75%20113%3%3%2.75%20122%2%2%2%1.83%20132%2%2%2%2%1.83%20142%2%2%2%2%2%1.83%20152%2%2%2%2%2%2%20162%2%2%2%2%2%2%20173%3%3%3%3%3%3%20183%3%3%3%3%3%3% Interest through 11/6/20192.54%2.54%2.54%2.54%2.54%2.54%2.54%Interest Factor35.95%29.12%24.28%21.28%18.37%16.37%14.37%Interest Amount 2,917.15$ 3,659.06$ 4,160.50$ 6,300.43$ 5,777.38$ 5,556.21$ 2,055.07$ 30,425.78$ TracFone Wireless, Inc. / City of Renton Utility Tax Assessment Appeals Hearing Schedule 2Interest Per Ordinance No. 5944 State of Washington Methodology STATE OF WASHINGTON DEPARTMENT OF REVENUE Research & Fiscal Analysis Division PO Box 47459  Tumwater, WA 98504-7459  (360) 534-1550  Fax (360) 534-1526 Research Report #2020-5 July 6, 2020 INTEREST RATES FOR STATE EXCISE TAXES Calendar Year 2021 Calendar Year 2021 interest rate s for assessments and refunds ha ve been calculated at 3%. The Legislature determines the method for calculating these interest rates, and this method is set forth in RCWs 82.32.050 and .060. The method determined by the Legislature for calculating these rates links the rates to the general level of interest rates prevailing in the U.S. economy. The methods for calculating these rates, and the rates themselves, have changed many times over the years. The following table shows the history of these rates. Interest Rate History Assessments Refunds Prior to 1992 9% 3% Calendar Year 1992 9 8 Calendar Year 1993 7 6 Calendar Year 1994 6 5 Calendar Year 1995 7 6 Calendar Year 1996 8 7 Calendar Year 1997 8 7 Calendar Year 1998 7 6 Calendar Year 1999 7 7 Calendar Year 2000 7 7 Calendar Year 2001 8 8 Calendar Year 2002 7 7 Calendar Year 2003 5 5 Calendar Year 2004 4 4 Calendar Year 2005 4 4 Calendar Year 2006 5 5 Calendar Year 2007 7 7 Calendar Year 2008 7 7 Calendar Year 2009 5 5 Calendar Year 2010 3 3 Calendar Year 2011 3 3 Calendar Year 2012 2 2 Calendar Year 2013 2 2 Calendar Year 2014 2 2 Calendar Year 2015 2 2 Calendar Year 2016 2 2 Interest Rate History Assessments Refunds Calendar Year 2017 3 3 Calendar Year 2018 3 3 Calendar Year 2019 4 4 Calendar Year 2020 4 4 Calendar Year 2021 3 3