HM Pacific Northwest Inc. 5/18/2023

I 1 1-07.2.RTF 111 2 1-07.2 State Taxes 3 4 Delete this section, including its sub-sections, in its entirety and replace it with the following: I 5 6 1-07.2 State Sales Tax 7 (June 27, 2011 APWA GSP) I 8 9 The Washington State Department of Revenue has issued special rules on the State 10 sales tax. Sections 1-07.2(1) through 1-07.2(3) are meant to clarify those rules. The II 1 Contractor should contact the Washington State Department of Revenue for answers to 12 questions in this area. The Contracting Agency will not adjust its payment if the 13 Contractor bases a bid on a misunderstood tax liability. 14 I 15 The Contractor shall include all Contractor-paid taxes in the unit bid prices or other 16 contract amounts. In some cases, however, state retail sales tax will not be included. 17 Section 1-07.2(2) describes this exception. I 18 19 The Contracting Agency will pay the retained percentage (or release the Contract Bond if 20 a FHWA-funded Project) only if the Contractor has obtained from the Washington State I 21 Department of Revenue a certificate showing that all contract-related taxes have been 22 paid (RCW 60.28.051). The Contracting Agency may deduct from its payments to the 23 Contractor any amount the Contractor may owe the Washington State Department of I 24 Revenue, whether the amount owed relates to this contract or not. Any amount so 25 deducted will be paid into the proper State fund. 26 I 27 1-07.2(1) State Sales Tax— Rule 171 28 29 WAC 458-20-171, and its related rules, apply to building, repairing, or improving streets, 30 roads, etc., which are owned by a municipal corporation, or political subdivision of the I31 state, or by the United States, and which are used primarily for foot or vehicular traffic. 32 This includes storm or combined sewer systems within and included as a part of the 33 street or road drainage system and power lines when such are part of the roadway I 34 lighting system. For work performed in such cases, the Contractor shall include 35 Washington State Retail Sales Taxes in the various unit bid item prices, or other contract 36 amounts, including those that the Contractor pays on the purchase of the materials, I 37 equipment, or supplies used or consumed in doing the work. 38 39 1-07.2(2) State Sales Tax— Rule 170 I 40 41 WAC 458-20-170, and its related rules, apply to the constructing and repairing of new or 42 existing buildings, or other structures, upon real property. This includes, but is not I 43 limited to, the construction of streets, roads, highways, etc., owned by the state of 44 Washington; water mains and their appurtenances; sanitary sewers and sewage 45 disposal systems unless such sewers and disposal systems are within, and a part of, a 46 street or road drainage system; telephone, telegraph, electrical power distribution lines, I47 or other conduits or lines in or above streets or roads, unless such power lines become a 48 part of a street or road lighting system; and installing or attaching of any article of 49 tangible personal property in or to real property, whether or not such personal property 50 becomes a part of the realty by virtue of installation. 51 I 2023 FEDERAL OVERLAY FEDERAL AID#STBGUL-2715(011) IWO#3788 March 2,2023 SP-19