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WAC 17001 Government contracting--Construction, installations, or improvements to government real property.
WAC: 458-20-17001   05/01/1986 Government contracting - construction, installations, or improvements to government real property.  
RCW: 82.04.050   1997 "Sale at retail," "retail sale."
  82.04.190   1998 "Consumer."
  82.04.270   1998 Tax on wholesalers, distributors.
  82.04.280   1998 Tax on Public Road Construction -- Government Contracting.
  82.08.998   2008 Exemption - Weatherization of a residence
ETA: 3115.2009 2/2/09 Sales to the Washington State National Guard
  554.04/08.17001 1/2/92 SALES TO THE WASHINGTON STATE NATIONAL    GUARD Cancelled Effective April 12, 2007
  2038.08.17001 4/12/07 SALES TO THE WASHINGTON STATE NATIONAL    GUARD Explains the tax liabilities of suppliers and contractors doing business with the WA State National Guard. Distinguishes these tax liabilities from those of persons doing business with federal agencies, such as Dept of Army and US Property & Fiscal Office.
INDUSTRY GUIDES:   Oct-05 Construction Guide
DIRECTIVE: None      
RPM: None      
WTD: 3 WTD 165 87-173   FEDERAL CONTRACTORS -- USE TAX.  Contractors for the federal government are liable for use tax on the value of materials supplied to the contractors by the government.  Washington v. United States, 75 L. Ed. 2d 264 (1983). 
  4 WTD 417 88-6   RETAIL SALES TAX -- CONSUMER -- GOVERNMENT CONTRACTOR.  The retail sales or use tax must be paid by  government  contractors upon their  purchases and leases or rentals of tangible personal property used by them as consumers in performing government contracting.
  6 WTD 223 88-286   USE TAX -- MATERIALS AND EQUIPMENT -- GOVERNMENT CONTRACTS -- LIABILITY -- INSTALLING CONTRACTOR -- DEFINITION.  The installing contractor bears primary responsibility for the payment of the use tax on the value of materials and equipment. The installing contractor is the one who has possession and control of the equipment and materials.
  7 WTD 163 89-63   GOVERNMENT CONTRACTING -- FSLIC --INSTRUMENTALITY OF UNITED STATES.  When a project owner is taken over by the FSLIC, the tax liability of the contractor shifts from the retailing category to the government contracting category.  The FSLIC is an instrumentality of the federal government.  
  8 WTD 283 89-480   RCW 82.04.190 -- GOVERNMENT CONTRACTING --CONSUMER -- RETAIL SALES TAX.  A prime contractor working on government contracts is required to pay retail sales tax on all items of tangible personal property it purchases for incorporation into such projects.  
  9 WTD 71 90-34   RULE 170 -- B&O TAX -- GOVERNMENT CONTRACTING -- MAINTENANCE OF LAWNS AND GROUNDS -- GOLF COURSE.  A person who mows and waters the grass and otherwise maintains the grounds and golf course at a U.S. Army base is a landscape gardener B& O taxable under the Service category.
  9 WTD 276-11 90-127   FEDERAL CONTRACTORS -- USE TAX -- SETTLEMENT WITH NAVY.  Contracts awarded by Navy prior to September 30, 1983, even if still open and in performance after that date, are covered by settlement between Navy and State, thereby relieving contractors of liability for use and sales taxes. Such contracts which remained open after then and were affected by change orders resulting in substantial, additional   construction are subject to additional tax. 
  11 WTD 45 90-123   B&O TAX CLASSIFICATION -- GOVERNMENT CONTRACTING -- ENGINEERING SERVICES -- CONTRACTING PARTIES -- PROJECTS FUNDED BY UNITED STATES GOVERNMENT.  Where taxpayer has contracted with cities and counties to provide engineering services and those local governmental projects were funded by United States governmental grants, the taxpayer's income is not to be reported as subject to the Government Contracting classification of the B&O tax.  The taxpayer did not perform construction work to real property of or for the United States, its instrumentalities or a county or a city housing authority -- the name entities to which Rule 17001 applies.  The income is taxable under another appropriate tax classification.
  17 WTD 32 92-239   SALES TAX -- EXEMPTION -- CONTRACTOR --FEDERALLY CHARTERED CREDIT UNION.  12 USC §1768, which exempts federally chartered credit unions from most taxes imposed by states, does not exempt a contractor from taxes imposed on it.  The fact that the economic burden may be borne by the credit union does not invalidate the taxes or alter the liability of the contractor for them.
  19 WTD 116 Withdrawn See ETA 3133.2012 97-111ER 02/14/2003 The Department has learned that the critical facts described in this
determination are inaccurate. Therefore, the Department does not believe this determination provides helpful guidance.
  19 WTD 122 98-165   RETAIL SALES TAX -- WHOLESALING -- SERVICES RENDERED IN RESPECT TO CONSTRUCTION -- PUBLIC ROAD CONSTRUCTION -- GOVERNMENT CONTRACTING. A person hired for his skill, knowledge, and expertise in operating a water truck to compact soils at construction sites is rendering services in respect to construction.  The person is not merely renting equipment with an operator to perform work under the specific direction of a lessee.  The proper tax classification for such activities depends on whether the person is a prime contractor or a subcontractor, and/or whether the construction project is normal retail sale, or public road construction, or government contracting.
  19 WTD 447 99-147   GOVERNMENT CONTRACTING – USE TAX ON MATERIALS SUPPLIED -- CONSUMER.  Contractor or subcontractor who installs materials for the federal government is considered the consumer of the materials and is liable for the use tax based upon the material costs.  
  19 WTD 714 00-029   GOVERNMENT CONTRACTING – NONPERMANENT INSTALLATIONS – MATERIAL COSTS IN RELATION TO LABOR COSTS.  A person engaged in the business of constructing, repairing, decorating, or improving new or existing buildings or other structures for the United States government is a consumer of the installed materials even though the materials do not become a part of the realty by virtue of the installation and labor costs are minor in relation to material costs.
  20 WTD 261 97-032R   B&O TAX -- RENTAL -- EQUIPMENT WITH OPERATOR -- FIREFIGHTING.  Receipts from emergency equipment rental agreement with national forest are taxable under the retailing classification.  The national forest’s fire boss controls the equipment and operators clearing federal land for fire lanes and other tasks during and after fire emergencies.
  21 WTD 31 01-129   10 U.S.C. § 2875: RETAIL SALES TAX -- FEDERAL INSTRUMENTALITY.  An entity carrying out projects for the acquisition or construction of housing units suitable for use as military family housing or as military unaccompanied housing, established pursuant to 10 U.S.C. § 2875, is not an instrumentality of the United States for purposes of RCW 82.04.050(9), since it serves a commercial purpose for private profit which is separate and distinct from the purposes of the United States. 
  21 WTD 240 01-178   RCW 82.04.050, RCW 82.04.190, RCW 82.04.270: RETAIL SALES TAX – RENTAL OF EQUIPMENT WITH OPERATOR -- PUBLIC ROAD CONSTRUCTION.  A person hired by a county for his skill, knowledge, and expertise in bridge construction is not merely renting equipment with an operator to perform work under the specific direction of a lessee, but was acting as a subcontractor whose work was subject to contract specifications.  The proper tax classification for such activities is public road construction.
  34 WTD 001 13-0306 02/10/2015 RULE 17001, RULE 228; RCW 82.04.190, RCW 82.32.050, RCW 82.32A.020, RCW 82.32.105: USE TAX/DEFERRED SALES TAX, PENALTIES, INTEREST – GOVERNMENT CONTRACTING, WHOLESALING – SUBCONTRACTOR, WAIVER OF PENALTIES AND INTEREST: The Department denied the taxpayer’s petition for reversal of an assessment for use tax/deferred sales tax associated with the taxpayer’s status as a government contractor (the taxpayer acted as a subcontractor and performed jobs on federally-owned property). The taxpayer originally reported its income under the wholesaling classification because it obtained resale certificates/reseller permits from the prime contractors. The Department reclassified the taxpayer’s income to government contracting and assessed applicable use tax/deferred sales tax, plus penalties and interest. The Department also denied the taxpayer’s request for waiver of penalties and interest, finding that the taxpayer did not meet the statutory requirements for waiver.