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August 18, 2009

Det. No. 08-0222, 28 WTD 89 (2009) Single family home builders appeal two assessments of retail sales tax and retailing business and occupation (B&O) tax claiming that they acted as speculative builders on certain transactions, as opposed to prime contractors.  The taxpayers claim that in these transactions they acted as joint venturers with the landowners to build a single home that would be sold to a third party.  We find that the taxpayers acted as joint venturers in five of the seven agreements in question.  We also find that the taxpayers received absolute payments subject to retail sales tax and retailing B&O tax under those five joint venture agreements when they received construction draws for the services they provided to the joint ventures.  Because the assessment only included retail sales tax and retailing B&O tax on the construction draws received by the taxpayers, we uphold the assessment.

Det. No. 08-0233E, 28 WTD 100 (2009) The taxpayer, an oncology and hematology clinic, petitions for correction of assessment and refund with respect to its receipts from administering chemotherapy drugs to patients.  We conclude that the Audit Division properly classified the taxpayer’s receipts from administering chemotherapy drugs to patients under the Service & Other Activities B&O tax classification and deny the taxpayer’s petition.









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