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WAC 223 Persons performing contracts on the basis of time and material, or cost-plus-fixed-fee.  
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
       
WAC: 458-20-223   03/30/1983 Persons performing contracts on the basis of time and material, or cost plus fixed fee.
         
       
RCW: 82.04.220   1995 Business and occupation tax imposed.
  82.04.250   1993 Tax on retailers.
  82.08.020   1992 Tax imposed-Retail sales-Retail car rental.
  82.14.030   1989 Sales and use taxes authorized-Additional taxes authorized-Maximum rates.
         
       
ETA: None      
         
       
INDUSTRY GUIDES:      
         
       
SPECIAL NOTICES:      
         
       
DIRECTIVE: None      
         
       
RPM: None      
         
       
WTD: 10 WTD 282 89-248   RETAIL SALES -- AMOUNTS PAID BY CONTRACTOR AND "REIMBURSED" BY BUYER -- SUBJECT TO SALES TAX. Amounts subject to sales tax that are paid by a contractor and "reimbursed" by the buyer are properly subject to sales tax, and such tax cannot be credited against the sales tax due on the contractor's fee.
  11 WTD 521 91-322   SERVICE B&O TAX -- TIME AND MATERIALS CONTRACT -- PRIMARY BUSINESS ACTIVITY -- BASIC ORDERING AGREEMENT. A basic ordering agreement that outlined the general scope and subject matter of the work to be done in addition to listing the standardized terms and conditions of work, but which contemplated that the actual tasks and compensation would be determined at a later time, did not constitute a lump sum contract. Subsequent task orders which identified the actual task to be performed, the compensation to be received, and the time required for completion were subject to taxation based on the primary business activity engaged in while performing those tasks.
  14 WTD 22 93-166   RETAILING B&O TAX -- PRIME CONTRACTOR --PAYMENT TO THIRD PARTIES BY OWNER -- GROSS INCOME. Taxpayer is a prime contractor subject to assessment based on the total amount of construction cost even if the owner paid the third party suppliers and subcontractors directly. The taxpayer benefited from such payments because they reduced or eliminated thetaxpayer's personal liability from the debts. The owner's payments were part of the contract's consideration received by the taxpayer and are considered gross income to the taxpayer.
  19 WTD 270 99-159   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.
  21 WTD 157 01-077   [1] RULE 170; RCW 82.04.250, RCW 82.04.050, RCW 82.08.020:RETAIL SALES TAX – RETAILING B&O TAX – PRIME CONTRACTOR – CONSTRUCTION UPON LAND OWNED BY A CORPORATE OFFICER.Where a construction company performed construction services on land owned by its corporate office, it was deemed a prime contractor.
  21 WTD 157 01-077   [2] RULE 170, RULE 223; RCW 82.04.250, RCW 82.04.050, RCW 82.08.020; ETA 276:RETAIL SALES TAX – RETAILING B&O TAX – MEASURE OF TAX --PRIME CONTRACTOR.Payment by a consumer of a contractor’s liability is includable in the contractor’s tax measure.When a contractor rents certain equipment, the contractor is acting as a consumer and is personally liable for retail sales tax on the equipment rental. However, a prime contractor’s purchase of labor and materials to construct a building for a consumer is a purchase for resale, and retail sales tax is not due on those purchases.Where retail sales tax was improperly paid on the contractor’s purchases, it should not be included in the measure
  21 WTD 169 01-077R   RETAIL SALES TAX – RETAILING B&O TAX – PRIME CONTRACTOR – CONSTRUCTION UPON LAND OWNED BY A CORPORATE OFFICER.Where a construction company performs construction services on land owned by its corporate office, it is deemed a prime contractor.
  21 WTD 169 01-077R   RETAIL SALES TAX – RETAILING B&O TAX – MEASURE OF TAX --PRIME CONTRACTOR –FORM OVER SUBSTANCE.Payment by a consumer of a contractor’s liability is includable in the contractor’s tax measure.Taxpayers are free to choose the form of their business relationship, and where their conduct is consistent with that form, there is no reason to disregard the form chosen by the taxpayers.
       
       
       
       
         
       
OTHER: