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18TH STREET PEDESTRIAN IMPROVEMENTS 3741 RMT July 03, 2024 17 1 The Contracting Agency will pay the retained percentage (or release the Contract Bond if 2 a FHWA-funded Project) only if the Contractor has obtained from the Washington State 3 Department of Revenue a certificate showing that all contract-related taxes have been 4 paid (RCW 60.28.051). The Contracting Agency may deduct from its payments to the 5 Contractor any amount the Contractor may owe the Washington State Department of 6 Revenue, whether the amount owed relates to this contract or not. Any amount so 7 deducted will be paid into the proper State fund. 8 9 1-07.2(1) State Sales Tax — Rule 171 10 11 WAC 458-20-171, and its related rules, apply to building, repairing, or improving streets, 12 roads, etc., which are owned by a municipal corporation, or political subdivision of the 13 state, or by the United States, and which are used primarily for foot or vehicular traffic. 14 This includes storm or combined sewer systems within and included as a part of the 15 street or road drainage system and power lines when such are part of the roadway 16 lighting system. For work performed in such cases, the Contractor shall include 17 Washington State Retail Sales Taxes in the various unit bid item prices, or other contract 18 amounts, including those that the Contractor pays on the purchase of the materials, 19 equipment, or supplies used or consumed in doing the work. 20 21 1-07.2(2) State Sales Tax — Rule 170 22 23 WAC 458-20-170, and its related rules, apply to the constructing and repairing of new or 24 existing buildings, or other structures, upon real property. This includes, but is not 25 limited to, the construction of streets, roads, highways, etc., owned by the state of 26 Washington; water mains and their appurtenances; sanitary sewers and sewage 27 disposal systems unless such sewers and disposal systems are within, and a part of, a 28 street or road drainage system; telephone, telegraph, electrical power distribution lines, 29 or other conduits or lines in or above streets or roads, unless such power lines become a 30 part of a street or road lighting system; and installing or attaching of any article of 31 tangible personal property in or to real property, whether or not such personal property 32 becomes a part of the realty by virtue of installation. 33 34 For work performed in such cases, the Contractor shall collect from the Contracting 35 Agency, retail sales tax on the full contract price. The Contracting Agency will 36 automatically add this sales tax to each payment to the Contractor. For this reason, the 37 Contractor shall not include the retail sales tax in the unit bid item prices, or in any other 38 contract amount subject to Rule 170, with the following exception. 39 40 Exception: The Contracting Agency will not add in sales tax for a payment the Contractor 41 or a subcontractor makes on the purchase or rental of tools, machinery, equipment, or 42 consumable supplies not integrated into the project. Such sales taxes shall be included 43 in the unit bid item prices or in any other contract amount. 44 45 1-07.2(3) Services 46 47 The Contractor shall not collect retail sales tax from the Contracting Agency on any 48 contract wholly for professional or other services (as defined in Washington State 49 Department of Revenue Rules 138 and 244). 50 51