| WAC 223 |
Persons
performing contracts on the basis of time and material, or
cost-plus-fixed-fee. |
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| SOURCE |
DOCUMENT |
DETER. NO |
DATE OF ISSUE |
DESCRIPTION |
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| WAC: |
458-20-223 |
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03/30/1983 |
Persons
performing contracts on the basis of time and material, or cost plus fixed
fee. |
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| RCW: | 82.04.220 |
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1995 |
Business and occupation tax
imposed. |
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82.04.250 |
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1993 |
Tax on retailers. |
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82.08.020 |
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1992 |
Tax imposed-Retail sales-Retail
car rental. |
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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: |
None |
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NOTICES: |
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| DIRECTIVE: |
None |
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| RPM: |
None |
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| WTD: |
10 WTD 282 |
89-248 |
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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. |
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11 WTD 521 |
91-322 |
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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. |
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14 WTD 22 |
93-166 |
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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. |
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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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21 WTD 157 |
01-077 |
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[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. |
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21 WTD 157 |
01-077 |
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[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 |
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21 WTD 169 |
01-077R |
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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. |
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21 WTD 169 |
01-077R |
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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. |
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