A. City, county, school districts, state agencies, housing authorities, etc.
A. The public agency must file the form with the Department.
A. The form is available online or by calling (360) 704-5650.
A. No, only for public works jobs that are $35,000 or more, before sales tax.
"Public work" means all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. RCW 39.04.010(4)
A. We review the type of project and determine whether the project requires sales tax. A Reconciliation of Taxes is mailed to the general contractor. The contractor has 30 days to complete and return the form to the Department.
If the income from the contract is properly reported and taxes have been paid by the general contractor, we send a Certificate of Payment to the public agency and the general contractor. If taxes are not properly reported or paid, we will contact the contractor directly for payment. If payment is not received a lien on the retainage held by the public agency will be filed.
A. Generally, we mail a Reconciliation of Taxes and a copy of the Notice of Completion to the contractor. The contractor must return the completed Reconciliation of Taxes within 30 days so we can verify the taxes for the project have been reported and paid. On average, the entire process takes 30 to 45 days.
A. After completion of all the work on the contract.
A. No. We do not require the affidavits. We can begin our review after completion of the work.
A. We need to know where the work was done in order to verify that the correct sales tax rate(s) and location code(s) were used. This helps us send the local portion of the sales tax to the correct city or county.
A. Yes. Any company doing work in Washington must have an active UBI number. This is the number they use to report their state excise taxes to the Department of Revenue.
A. In order to release retainage, the public agency must first receive approval to release retainage from the Department of Revenue, the Employment Security Department, and the Department of Labor & Industries.
Also note there are other considerations for the release of retainage. This Q&A does not address claims filed by subcontractors, suppliers, workers, etc.
A. The contractor has not returned their Reconciliation of Taxes to the Department to verify all B&O and sales/use taxes have been paid. If the reconciliation is not returned, we cannot proceed with the contract clearance.
A. Complete the Bonded Information section. Include the bond number or attach a copy of the bond. In the Amount Retained field, enter "Bonded."
A. Yes, bonded retainage doesn't change the process. We still need to verify that the taxes have been reported and paid. If there are taxes owing and the general contractor doesn't pay the Department, we will file a lien against the retainage bond.
A. You can ask the general contractor to provide a Tax Status letter.
A. Please contact us at (360) 704-5650. Do not pay retainage or sales tax on the NOWD without consulting the Department's public works staff.
A. Please do not pay retainage or sales tax without consulting with us. Sales tax should never be remitted to a bonding company without approval of the Department.
A. Please call the person who signed the Certificate of Lien.
A. Yes. The order (RCW 60.28.040) is:
A. If the general contractor doesn't pay, we send a Certificate of Lien to the public agency. The public agency provides a copy of the lien to the bonding company.
A. Email the complete form to the Department of Revenue at PWC@dor.wa.gov. You must also send the form to ESD and L&I.
A. You can email questions to us at PWC@dor.wa.gov or call (360) 704-5650.
A. Refer to: