Granite Construction Company 6/17/2025

2025 FEDERAL OVERLAY, W MUKILTEO BLVD – GLENWOOD AVE TO DOGWOOD DR PAGE SP25 OF SP123 SPECIAL PROVISIONS WORK ORDER #3842 April 15, 2025 FEDERAL AID# NHPP-2776(011) 1-07.2.RTF 1 1-07.2 State Taxes 2 3 Delete this section, including its sub-sections, in its entirety and replace it with the following: 4 5 1-07.2 State Sales Tax 6 (June 27, 2011 APWA GSP) 7 8 The Washington State Department of Revenue has issued special rules on the State 9 sales tax. Sections 1-07.2(1) through 1-07.2(3) are meant to clarify those rules. The 10 Contractor should contact the Washington State Department of Revenue for answers to 11 questions in this area. The Contracting Agency will not adjust its payment if the 12 Contractor bases a bid on a misunderstood tax liability. 13 14 The Contractor shall include all Contractor-paid taxes in the unit bid prices or other 15 contract amounts. In some cases, however, state retail sales tax will not be included. 16 Section 1-07.2(2) describes this exception. 17 18 The Contracting Agency will pay the retained percentage (or release the Contract Bond if 19 a FHWA-funded Project) only if the Contractor has obtained from the Washington State 20 Department of Revenue a certificate showing that all contract-related taxes have been 21 paid (RCW 60.28.051). The Contracting Agency may deduct from its payments to the 22 Contractor any amount the Contractor may owe the Washington State Department of 23 Revenue, whether the amount owed relates to this contract or not. Any amount so 24 deducted will be paid into the proper State fund. 25 26 1-07.2(1) State Sales Tax — Rule 171 27 28 WAC 458-20-171, and its related rules, apply to building, repairing, or improving streets, 29 roads, etc., which are owned by a municipal corporation, or political subdivision of the 30 state, or by the United States, and which are used primarily for foot or vehicular traffic. 31 This includes storm or combined sewer systems within and included as a part of the 32 street or road drainage system and power lines when such are part of the roadway 33 lighting system. For work performed in such cases, the Contractor shall include 34 Washington State Retail Sales Taxes in the various unit bid item prices, or other contract 35 amounts, including those that the Contractor pays on the purchase of the materials, 36 equipment, or supplies used or consumed in doing the work. 37 38 1-07.2(2) State Sales Tax — Rule 170 39 40 WAC 458-20-170, and its related rules, apply to the constructing and repairing of new or 41 existing buildings, or other structures, upon real property. This includes, but is not 42 limited to, the construction of streets, roads, highways, etc., owned by the state of 43 Washington; water mains and their appurtenances; sanitary sewers and sewage 44 disposal systems unless such sewers and disposal systems are within, and a part of, a 45 street or road drainage system; telephone, telegraph, electrical power distribution lines, 46 or other conduits or lines in or above streets or roads, unless such power lines become a 47 part of a street or road lighting system; and installing or attaching of any article of 48 tangible personal property in or to real property, whether or not such personal property 49 becomes a part of the realty by virtue of installation. 50 51