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<br /> CITY OF EVERETT SPECIAL PROVISIONS
<br /> Contractor's performance does not, and shall not, be intended to include review and
<br /> adequacy of the Contractor's safety measures in, on, or near the project site.
<br /> 1-07.2 State Sales Tax
<br /> Delete 1-07.2 and substitute the following: ,
<br /> 1-07.2(1) General
<br /> The Washington State Department of Revenue has issued special rules on the State
<br /> sales tax. Sections 1-07.2(1) through 1-07.2(4) are meant to clarify those rules. The
<br /> Contractor should contact the Washington State Department of Revenue for answers
<br /> to questions in this area. The City will not adjust its payment if the Contractor bases a
<br /> Bid on a misunderstood tax liability. I
<br /> The Contractor shall include all Contractor-paid taxes in the unit bid prices or other
<br /> contract amounts. In some cases, however, state retail sales tax will not be included.
<br /> Section 1-07.2(3) describes this exception.
<br /> The City will pay the retained percentage only if the Contractor has obtained from the
<br /> Washington State Department of Revenue a certificate showing that all Contract-
<br /> related taxes have been paid (RCW 60.28.050). The City may deduct from its
<br /> payments to the Contractor any amount the Contractor may owe the Washington State
<br /> Department of Revenue, whether the amount owed relates to this Contract or not. Any
<br /> amount so deducted will be paid into the proper State fund.
<br /> 1-07.2(2) State Sales Tax— Rule 171 – Use Tax
<br /> WAC 458-20-171, Use Tax, and its related rules, apply to building, repairing, or
<br /> improving streets, roads, etc., that are owned by a municipal corporation, or political
<br /> subdivision of the state, or by the United States, and that are used primarily for foot or
<br /> vehicular traffic. This includes storm or combined sewer systems within and included
<br /> as a part of the street or road drainage system and power lines when such are part of
<br /> the roadway lighting system. For Work performed in such cases, the Contractor shall
<br /> include Washington State Retail Sales Taxes in the various unit bid item prices, or
<br /> other contract amounts, including those that the Contractor pays on the purchase of
<br /> the materials, Equipment, or supplies used or consumed in doing the Work.
<br /> 1-07.2(3) State Sales Tax— Rule 170 – Retail Sales Tax
<br /> WAC 458-20-170, Retail Sales Tax, and its related rules, apply to the constructing and
<br /> repairing of new or existing buildings, or other structures, upon real property. This
<br /> includes, but is not limited to, the construction of streets, roads, highways, etc., owned
<br /> by the State of Washington: water mains and their appurtenances; sanitary sewers and
<br /> sewage disposal systems unless such sewers and disposal systems are within, and a
<br /> part of, a street or road drainage system; telephone, telegraph, electrical power
<br /> distribution lines, or other conduits or lines in or above streets or roads, unless such
<br /> power lines become a part of a street or road lighting system; and installing or
<br /> attaching of any article of tangible personal property in or to real property, whether or
<br /> not such personal property becomes a part of the realty by virtue of installation.
<br /> For Work performed in such cases. the Contractor shall collect from the City, retail
<br /> sales tax on the full Contract price. The City will automatically add this sales tax to
<br /> each payment to the Contractor. For this reason, the Contractor shall not include the
<br /> retail sales tax in the unit bid item prices, or in any other Contract amount subject to
<br /> Rule 170, with the following exception.
<br /> Exception: The City will not add in sales tax for a payment the Contractor or a
<br /> Subcontractor makes on the purchase or rental of tools, machinery, equipment, or
<br /> Water Main Replacement"Q" Division 1 —GENERAL CONDITIONS July 8, 2016
<br /> -Broadway
<br /> WO No.—UP3612 SP -72
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