Earthwork Solutions, LLC 1/15/2025

Fulton Street Pedestrian Bicycle Corridor PAGE 24 OF 114 CONTRACT FEDERAL AID # TAP-0420(026) WO #3785 September 6, 2024 1-07.2(1) State Sales Tax — Rule 171 1 2 WAC 458-20-171, and its related rules, apply to building, repairing, or improving streets, 3 roads, etc., which are owned by a municipal corporation, or political subdivision of the 4 state, or by the United States, and which are used primarily for foot or vehicular traffic. 5 This includes storm or combined sewer systems within and included as a part of the 6 street or road drainage system and power lines when such are part of the roadway 7 lighting system. For work performed in such cases, the Contractor shall include 8 Washington State Retail Sales Taxes in the various unit bid item prices, or other contract 9 amounts, including those that the Contractor pays on the purchase of the materials, 10 equipment, or supplies used or consumed in doing the work. 11 12 1-07.2(2) State Sales Tax — Rule 170 13 14 WAC 458-20-170, and its related rules, apply to the constructing and repairing of new or 15 existing buildings, or other structures, upon real property. This includes, but is not 16 limited to, the construction of streets, roads, highways, etc., owned by the state of 17 Washington; water mains and their appurtenances; sanitary sewers and sewage 18 disposal systems unless such sewers and disposal systems are within, and a part of, a 19 street or road drainage system; telephone, telegraph, electrical power distribution lines, 20 or other conduits or lines in or above streets or roads, unless such power lines become a 21 part of a street or road lighting system; and installing or attaching of any article of 22 tangible personal property in or to real property, whether or not such personal property 23 becomes a part of the realty by virtue of installation. 24 25 For work performed in such cases, the Contractor shall collect from the Contracting 26 Agency, retail sales tax on the full contract price. The Contracting Agency will 27 automatically add this sales tax to each payment to the Contractor. For this reason, the 28 Contractor shall not include the retail sales tax in the unit bid item prices, or in any other 29 contract amount subject to Rule 170, with the following exception. 30 31 Exception: The Contracting Agency will not add in sales tax for a payment the Contractor 32 or a subcontractor makes on the purchase or rental of tools, machinery, equipment, or 33 consumable supplies not integrated into the project. Such sales taxes shall be included 34 in the unit bid item prices or in any other contract amount. 35 36 1-07.2(3) Services 37 38 The Contractor shall not collect retail sales tax from the Contracting Agency on any 39 contract wholly for professional or other services (as defined in Washington State 40 Department of Revenue Rules 138 and 244). 41 42 1-07.5.GR1 43 Environmental Regulations 44 45 1-07.5.INST1.GR1 46 Section 1-07.5 is supplemented with the following: 47 48