| WAC 171 |
Building,
repairing or improving streets, roads, etc., which are owned by a municipal
corporation |
| SOURCE |
DOCUMENT |
DETER. NO |
DATE OF ISSUE |
DESCRIPTION |
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| WAC: |
458-20-171 |
|
07/22/1971 |
Building,
repairing or improving streets, roads, etc., which are owned by a municipal
corporation or political subdivision of the state or by the United States and
which are used primarily for foot or vehicular traffic. |
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| RCW: | 82.04.050 |
|
1993 |
"Sale at retail",
"retail sale" |
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82.04.250 |
|
1993 |
Tax on retailers. |
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82.04.190 |
|
1986 |
"Consumer" |
| |
82.04.270 |
|
1998 |
Tax on wholesalers,
distributors. |
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82.04.280 |
|
1994 |
Tax on printers, publishers,
highway contractors, extracting or processing for hire, cold storage
warehouse or storage warehouse operation, insurance general agents, radio and
television broadcasting, consumer as defined in RCW 82.04.190(6)--Cold
storage warehouse defined--Storage warehouse defined--Periodical or magazine
defined. |
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82.04.415 |
|
1965 |
Exemptions--Sand, gravel and
rock taken from county or city pits or quarries, processing and handling
costs. |
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82.08.020 |
|
1992 |
Retail Sales Tax Imposed |
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82.14.030 |
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1989 |
Sales and Use Taxes Authorized -
Additional Taxes Authorized - Maximum Rates |
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| ETA: | |
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3052.r109 |
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12/28/09 |
Retail sales tax: Road construction. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009. |
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3068.r109 |
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12/28/09 |
Taxability of highway construction contract projects administered by Washington State Department of Transportation. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009. |
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3153.r109 |
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12/28/09 |
Road construction - Contractors applying sand, gravel and rock - sales tax - use tax. Effective January 1, 2010, reseller permits will replace resale certificates as the means to substantiate wholesale purchases. Chapter 563, Laws of 2009. |
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3025.2009 |
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2/2/09 |
Construction of private roads intended to be dedicated to the county |
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3033.2009 |
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2/2/09 |
Public road construction for private individuals |
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3035.2009 |
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2/2/09 |
Paving cuts |
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3050.2009 |
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2/2/09 |
Dump truck operators |
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3052.2009 |
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2/2/09 |
Retail sales tax: Road construction |
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3053.2009 |
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2/2/09 |
Form oil purchased by building contractors |
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3067.2009 |
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2/2/09 |
Business & occupation tax: Contract assignments |
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3068.2009 |
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2/2/09 |
Taxability of highway construction contract projects administered by Washington State Department of Transportation |
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3071.2009 |
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2/2/09 |
Public Road Construction Materials – Measure of Tax |
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3134.2009 |
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2/2/09 |
Transactions between related entities |
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3148.2009 |
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2/2/09 |
Public road construction included in a lump sum general construction contract |
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3153.2009 |
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2/2/09 |
Road construction -Contractors applying sand, gravel and rock - sales tax - use tax |
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3154.2009 |
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2/2/09 |
Public road construction -- Off-site activities |
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4.8.12.171 |
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12/28/82 |
ROAD CONSTRUCTION - CONTRACTORS APPLYING SAND, GRAVEL AND ROCK SALES TAX - USE TAX Revised 2/2/09 See ETA 3153.2009 |
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16.12.171 |
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7/1/66 |
JOB SITE PLANTS AND PUBLIC ROAD CONSTRUCTION CONTRACTS Revised 2/2/09 See ETA 3071.2009 |
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49.04.171 |
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7/8/66 |
PUBLIC ROAD CONSTRUCTION INCLUDED IN A LUMP SUM GENERAL CONSTRUCTION CONTRACT Revised 2/2/09 See ETA 3148.2009 |
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52.04.171 |
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7/8/66 |
CONSTRUCTION OF HIGHWAY TUNNELS FOR PUBLICLY OWNED ROADS Cancelled Effective 03/28/08. This document explains that construction of tunnels for highways owned by the federal government is subject to the public road construction B&O tax classification, and a contractor installing linings in those tunnels is the consumer of the lining materials. There is no need for this information as WAC 458-20-171 provides sufficient information about the tax-reporting responsibilities of persons building roads owned by the federal government.
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202.12.171 |
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9/2/66 |
CONSTRUCTION OF PRIVATE ROADS INTENDED TO BE DEDICATED TO THE COUNTY Revised 2/2/09 See ETA 3025.2009 |
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255.04.171 |
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9/23/66 |
PUBLIC ROAD CONSTRUCTION FOR PRIVATE INDIVIDUALS Revised 2/2/09 See ETA 3033.2009 |
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259.12.171 |
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9/23/66 |
SALES TO PUBLIC ROADS CONTRACTOR FOR USE OUTSIDE THE STATE Cancelled Effective 03/28/08. This document explains that a construction company that purchases materials in Washington that will be incorporated into a publicly-owned road outside of Washington is not subject to use tax on the value of those materials. While this is accurate, it is no longer necessary to have an ETA explaining it.
|
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264.12.171 |
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9/23/66 |
PAVING CUTS Revised 2/2/09 See ETA 3035.2009 |
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330.12.171 |
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12/28/67 |
ASPHALT MIXED AT PIT SITE Revised 2/2/09 See ETA 3071.2009 |
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366.04.171 |
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3/21/1973 |
ROAD CONSTRUCTION UNDER FEDERAL TIMBER PURCHASE AGREEMENTS - This document provides incorrect tax-reporting information. It states that a subcontractor performing logging road construction under the terms of a federal timber purchase agreement is considered a public road contractor. This is incorrect. Logging road construction, whether performed by the timber buyer or a subcontractor, is considered a part of the logging activity. (See also Lyle Wood Products vs. Dept. of Revenue, 91 Wn.2d 193, 588 P.2d 215.) ETA 366 also incorrectly notes that a timber buyer is not a consumer of road materials provided by the federal government if the timber purchase agreement does not contain a separately stated allowance for road construction. This is also incorrect. Cancelled by ETA 2003 -2s 6/30/00. |
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370.08.171 |
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6/12/70 |
RETAIL SALES TAX: OFF-SITE CONSTRUCTION Revised 2/2/09 See ETA 3154.2009 |
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372.04.171 |
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6/12/70 |
RETAIL SALES TAX: PUBLIC ROAD CONSTRUCTION Revised 2/2/09 See ETA 3052.2009 |
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373.08.171 |
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6/12/70 |
Retail sales tax: Logging performed as an incident to construction of privately owned roads -This document explains that the felling, bucking, and decking of logs while constructing a road is incidental to the road construction contracts. This document is no longer needed. WAC 458-20-13501 explains the taxability of logging performed as an incident to construction. Cancelled by ETA 2003 -3s 07/16/01 |
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433.04.170.171 |
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7/9/71 |
BUSINESS & OCCUPATION TAX: CONTRACT ASSIGNMENTS Revised 2/2/09 See ETA 3067.2009 |
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437.08.171 |
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8/11/71 |
TAXABILITY OF HIGHWAY CONSTRUCTION CONTRACT PROJECTS ADMINISTERED BY WASHINGTON STATE DEPARTMENT OF HIGHWAYS Revised 2/2/09 See ETA 3068.2009 |
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484.04.171 |
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7/31/74 |
CORPORATION AND STOCKHOLDER DISTINCT ENTITIES FOR BUSINESS AND OCCUPATION TAX PURPOSES Revised 2/2/09 See ETA 3134.2009 |
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| INDUSTRY GUIDES: |
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Construction Guide |
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NOTICES: |
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| DIRECTIVE: |
8171.1 |
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11/03/1987 |
Value of Rock from State or
Federal Pits Cancelled 7/17/2002 |
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8171.2 |
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11/04/1987 |
Paving Cuts |
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| WTD: |
1 WTD 353 |
86-292 |
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USE
TAX - ROAD CONSTRUCTION - EXTRACTED MATERIALS. The extraction and application
upon the roadway of materials by a road builder is a use of those materials
for use tax purposes. |
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1 WTD 353 |
86-292 |
|
USE
TAX - ROAD CONSTRUCTION - EXTRACTED MATERIALS - LOGGING ROADS - SALES TAX
COLLECTED FROM CUSTOMER. Use tax will
not be asserted on the use of extracted materials by persons building logging
roads where those persons held a reasonable and good faith belief that they
were performing a retail sale and they collected sales tax from their
customers on the total charge. |
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1 WTD 353 |
86-292 |
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USE TAX - VALUE OF ARTICLE USED
- ROAD CONSTRUCTION - MATERIALS EXTRACTED BUT NOT PROCESSED. Prior to December 28, 1982, under the terms
of Excise Tax Bulletin (ETB) 4.8.12.171, use tax is not applied to materials
extracted by road builders and used in building roads if the materials are
not processed or manufactured. As of
that date, under the terms of the ETB as revised, use tax is applicable. Under the ETB it is measured by the cost of
extraction. Where cost figures are not
available the tax is measured by the retail selling price, as nearly as
possible, of similar products. |
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5 WTD 147 |
88-147 |
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B&O/RETAIL SALES TAX --
CLASSIFICATION -- PUBLIC ROAD CONSTRUCTION -- STORM SEWERS. Construction of storm sewers that serve a
public road or street is taxable under the B&O category, Public Road
Construction, even though portions of such construction extend outside the
boundaries of the street right-of-way and even though the drain fields may
also accommodate some sewage on an incidental basis. |
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5 WTD 311 |
88-183 |
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CANONS
OF CONSTRUCTION--PUBLIC ROAD CONSTRUCTION -- CONTRACTOR -- "PILOT
CAR" AND " FLAGGING".
"Pilot car" and "flagging" activities do not fall
within the Rule 171 definition of contractor. |
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6 WTD 317 |
87-192A,85-125A |
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USE
TAX--PUBLIC ROAD CONSTRUCTION -- USE TAX ON ROAD MATERIALS -- DEFAULTING
SUBCONTRACTOR. A prime road
construction contractor who undertakes a public road installation contract of
a defaulting road subcontractor is itself the installing party who is liable
for use tax upon materials installed in performance of the subcontract. |
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6 WTD 465 |
88-389 |
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B&O
TAX -- CLASSIFICATION -- PUBLIC ROAD CONSTRUCTION -- DRAINAGE SYSTEM --
SURFACE RUNOFF. In order for the
construction of a drainage system in a street or road to qualify as public
road construction it must carry surface runoff from the streets and roads in
which the system is constructed. |
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7 WTD 299 |
89-197 |
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RCW
82.04.280 -- RCW 82.04.050 -- PUBLIC ROAD CONSTRUCTION -- MASS TRANSIT FACILITY -- BUS MAINTENANCE
AREA -- BUS STORAGE AREA. Bus
maintenance and storage facilities are considered to be mass transit
facilities and construction or modifications to such buildings are considered
public road construction, because such buildings are directly related to foot
and vehicular traffic. |
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9 WTD 231 |
90-108 |
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B&O
TAX -- EXTRACTING -- LOGGING ROAD CONSTRUCTION -- CONSTRUCTION CREDITS. Where taxpayer/extractor has purchased a
timber contract and builds logging roads, amounts received by the taxpayer as
"road building credits" are not credits against the purchase price
of the timber contract, but B&O taxable payments for building the logging
roads benefiting the seller of the timber contract. |
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10 WTD 25 |
90-232 |
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RCW 82.04.280 & RCW
82.04.050 -- PUBLIC ROAD CONSTRUCTION -- MASS TRANSIT FACILITY -- PHASED
CONSTRUCTION. Demolition contract for
the site preparation for a transit mall taxed under the public road
construction classification where the contract was done as part of an
approved plan to build the transit facility. |
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16 WTD 25 |
95-085 |
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B&O TAX -- RETAIL SALES TAX
-- PUBLIC ROAD CONSTRUCTION -- HOUSING DEVELOPMENTS. The construction of streets as part of a
housing development will be considered public road construction if it is
reasonably certain that the streets will be dedicated to a public body. Otherwise, such construction will be
treated as a retail sale. |
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17 WTD 278 |
95-052ER |
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PUBLIC ROAD CONSTRUCTION - MASS
PUBLIC TRANSPORTATION - WHAT CONSTITUTES.
The term mass public transportation refers to urban, public
transportation systems"; citing,
Municipality of Metropolitan Seattle v. O'Brien, 86 Wn.2d 339, 342, 544 P.2d
729 (1976). |
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17 WTD 278 |
95-052ER |
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PUBLIC
ROAD CONSTRUCTION - MASS PUBLIC TRANSPORTATION TERMINALS AND PARKING
FACILITIES - MUNICIPAL AIRPORT TERMINAL.
An airport terminal owned and operated by a port district, which
terminal does not serve an urban public transportation or transit function,
is not included within the scope of the phrase mass public transportation
terminal and parking facility. Mere
ownership of an airport terminal by a municipality or a political subdivision
of this state does not make the terminal a mass public transportation
terminal. |
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17 WTD 278 |
95-052ER |
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PUBLIC ROAD CONSTRUCTION --
MASS PUBLIC TRANSPORTATION TERMINALS AND PARKING FACILITIES -- WHAT
CONSTITUTES. The phrase mass public
transportation terminals and parking facilities used in RCW 82.04.050(6),
RCW 82.04.280, and RCW 82.04.190 grants public road construction tax
treatment to those passenger terminals and parking facilities necessary for
passenger and vehicular access to and from urban public transportation
systems that are owned, or leased, and operated by municipalities as
defined by RCW 35.95.020(2), and by RTAs formed under chapter 81.112 RCW, and
those terminal and parking facilities necessary for such systems. |
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17 WTD 278 |
95-052ER |
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PUBLIC ROAD CONSTRUCTION --
MASS PUBLIC TRANSPORTATION TERMINALS AND PARKING FACILITIES -- PORT
DISTRICT -- AIRPORT. Because a port
district is not a municipality as defined by RCW 35.95.020, or an RTA, and
because a port district is generally not authorized to engage in a
transportation business, Taxpayer, as a port district, does not qualify for
public road construction tax treatment when it builds, repairs, or improves
an airport passenger terminal which does not serve an urban public
transportation system. |
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17 WTD 322 |
97-115 |
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SALES TAX -- TRUST FUND
ACCOUNTABILITY ASSESSMENT -- PUBLIC WORKS CONTRACT -- RETAINAGE --
APPLICATION OF. Retainage paid the
Department from a public works contract must first be applied to tax,
interest, and penalty liability arising directly out of the project for which
it was withheld before it may be used for other state tax arrearages. |
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17 WTD 322 |
97-115 |
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SALES
TAX -- TRUST FUND ACCOUNTABILITY ASSESSMENT -- PENALTIES AND INTEREST. A trust fund accountability assessment may
include penalties and interest that accrue on the tax debt of a defunct
corporation. |
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19 WTD 122 |
98-165 |
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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. |
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19 WTD 160 |
99-135E |
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RETAIL
SALES TAX EXEMPTION PUBLIC ROAD CONSTRUCTION. Legally required mitigation work performed
on wetlands does not qualify as public road construction when those wetlands
are physically separate from the actual county road construction project
and/or when the wetlands are owned by the state. |
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19 WTD 270 |
99-159 |
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COST PLUS CONSTRUCTION CONTRACTS
INCLUDABLE EXPENSES Where the entity providing the cost plus services is
liable for an expense, that amount is included in the total project cost even
if the expense is paid by another individual. |
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19 WTD 307 |
99-263 |
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RETAILING B&O TAX VS. PUBLIC
ROAD CONSTRUCTION B&O TAX SERVICES IN RESPECT TO CONSTRUCTING -- WATER
DRAINAGE SYSTEMS -- Contractor who installs lines that collect water from
downspouts on houses to drain the downspouts into sewer catch basins properly
taxed under the retailing classification.
Such lines handle runoff from roofs, not the streets and roads in
which the lines are constructed. |
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19 WTD 447 |
99-147 |
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PUBLIC
ROAD CONSTRUCTION CONSUMER. Where a
contractor performs road construction for a municipality, the contractor will
be required to pay retail sales/use tax on the materials used. However, where the contractors activities
on a project were limited to supplying labor, and the contractor neither
purchased nor installed any materials, the contractor neither used nor
consumed any materials on which to assess retail sales or use tax. |
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20 WTD 32 |
00-028 |
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USE TAX PUBLIC ROAD
CONSTRUCTION vs. CUSTOM CONSTRUCTION DUTY TO KEEP AND PRESERVE
RECORDS. Whether a contractor/taxpayer
who performed work on road projects was engaged in custom construction or in
public road construction depended on whether the road projects were done on
state-owned land or on land owned by a city, county, or other political
subdivision of the state or the federal government. The taxpayer failed to keep and preserve
records to support his claim that the road projects were custom construction. |
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20 WTD 385 |
00-170 |
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B&O TAX PUBLIC ROAD
CONSTRUCTION B&O TAX -- HOOK-UP FEE CREDITS. Taxpayer, as landowner, owed hook-up fees
collected by the municipality as payment for the construction of a stormwater
treatment plant. Taxpayer, as
contractor, received hook-up fee credits as payment (income) for building the
stormwater treatment plant. The income
received as hook-up fee credits for building a stormwater treatment plant is
subject to public road construction
B&O tax. |
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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. |
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23 WTD 182 |
03-0269 |
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RETAIL SALES TAX USE TAX PUBLIC ROAD CONSTRUCTION
APPLICATION OF MATERIALS. A contractor
that applies sand, gravel, rock, and similar materials in performance of a
public road construction contract is the consumer of the materials, and is
liable for retail sales tax on the purchase of the materials, or use tax if
the materials were acquired under circumstances in which the retail sales tax
was not paid. The fact that the public
owner of the land later builds upon the surface created by the contractors
application of the materials does not make the public owner the consumer of
the materials. |
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23 WTD 182 |
03-0269 |
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USE TAX PUBLIC ROAD CONSTRUCTION USE OF MATERIALS TAKEN
FROM A COUNTY STOCKPILE. A public road
contractor is not exempt from use tax on its use of rock materials taken from
a county stockpile. The provision in
Rule 171 that partially excludes from the use tax the use of materials a
county or city has taken from its own pit and stockpiled for placement on its
own roadway is an exemption for cities and counties only. |
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23 WTD 182 |
03-0269 |
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USE
TAX ROAD CONSTRUCTION JOB SITE DESIGNATED STOCKPILES. Where building materials or components are
fabricated at a location off the job site, use tax is due on the use of the
materials, measured by the value of the materials, including the labor of
preparation. The exception that
recognizes asphalt and concrete mixing plants that the contractor has
temporarily located in the vicinity of the job as part of the job site, does
not extend to off-site county stockpiles of materials designated by the
county for use in the project. |
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23 WTD 276 |
03-0236 |
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RETAIL SALES TAX EXEMPTION PUBLIC ROAD CONSTRUCTION --
PARKING. Improvements to the portion
of a right of way that parallels a primary arterial and is used for motor
vehicle circulation, parking, and access for homes, businesses, and a
pedestrian pathway qualify for the public road construction exemption. |
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24 WTD 297 |
04-0093R |
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RETAIL
SALES TAX USE TAX PUBLIC ROAD CONSTRUCTION TAILGATE SPREADING OF
MATERIALS CONSUMER. A public road
contractor that incorporates road materials into the roadway by having its
materials supplier deliver the materials by tailgate spreading, is the
consumer of the materials, and retail sales tax applies to the sale of the
materials to the contractor. The
manner of delivery, by tailgate spreading, does not, by itself, make the
materials supplier the consumer of the materials. Mere hauling and tailgate spreading of
materials on public road jobs is not public road construction. The public road contractor who consumes the
materials in the performance of its contract to build the road is the person
liable for retail sales tax or use tax on the materials. |
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25 WTD 133 |
05-0162 |
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RETAIL SALES TAX - PUBLIC ROAD CONSTRUCTION - BOAT RAMP. Because a boat ramp is not used primarily
for foot or vehicular traffic, the ramps construction does not constitute
public road construction, and charges for the ramp's construction are subject
to retail sales tax |
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