WAC 223 | Washington Department of Revenue

Revised Codes of Washington (RCW)
Document Reference	Description	Date of Issue	Status
82.04.220	Business and occupation tax imposed.
82.04.250	Tax on retailers.
82.08.020	Tax imposed-Retail sales-Retail car rental.
82.14.030	Sales and use taxes authorized-Additional taxes authorized-Maximum rates.

Washington Administrative Codes (WAC)
Document Reference	Description	Date of Issue	Status
458-20-223	Persons performing contracts on the basis of time and material, or cost plus fixed fee.

Washington Tax Decisions (WTD)
Document Reference	Description	Date of Issue	Status
10 WTD 282	RETAIL SALES -- AMOUNTS PAID BY CONTRACTOR AND "REIMBURSED" BY BUYER -- SUBJECT TO SALES TAX. Amounts subject to sales tax that are paid by a contractor and "reimbursed" by the buyer are properly subject to sales tax, and such tax cannot be credited against the sales tax due on the contractor's fee.
11 WTD 521	SERVICE B&O TAX -- TIME AND MATERIALS CONTRACT -- PRIMARY BUSINESS ACTIVITY -- BASIC ORDERING AGREEMENT. A basic ordering agreement that outlined the general scope and subject matter of the work to be done in addition to listing the standardized terms and conditions of work, but which contemplated that the actual tasks and compensation would be determined at a later time, did not constitute a lump sum contract.
14 WTD 22	RETAILING B&O TAX -- PRIME CONTRACTOR --PAYMENT TO THIRD PARTIES BY OWNER -- GROSS INCOME. Taxpayer is a prime contractor subject to assessment based on the total amount of construction cost even if the owner paid the third party suppliers and subcontractors directly. The taxpayer benefited from such payments because they reduced or eliminated thetaxpayer's personal liability from the debts. The owner's payments were part of the contract's consideration received by the taxpayer and are considered gross income to the taxpayer.
19 WTD 270	COST PLUS CONSTRUCTION CONTRACTS – INCLUDABLE EXPENSES – Where the entity providing the cost plus services is liable for an expense, that amount is included in the total project cost even if the expense is paid by another individual.
21 WTD 157	[2] RULE 170, RULE 223; RCW 82.04.250, RCW 82.04.050, RCW 82.08.020; ETA 276:RETAIL SALES TAX – RETAILING B&O TAX – MEASURE OF TAX --PRIME CONTRACTOR.Payment by a consumer of a contractor’s liability is includable in the contractor’s tax measure.When a contractor rents certain equipment, the contractor is acting as a consumer and is personally liable for retail sales tax on the equipment rental.
21 WTD 157	[1] RULE 170; RCW 82.04.250, RCW 82.04.050, RCW 82.08.020:RETAIL SALES TAX – RETAILING B&O TAX – PRIME CONTRACTOR – CONSTRUCTION UPON LAND OWNED BY A CORPORATE OFFICER.Where a construction company performed construction services on land owned by its corporate office, it was deemed a prime contractor.
21 WTD 169	RETAIL SALES TAX – RETAILING B&O TAX – PRIME CONTRACTOR – CONSTRUCTION UPON LAND OWNED BY A CORPORATE OFFICER.Where a construction company performs construction services on land owned by its corporate office, it is deemed a prime contractor.
21 WTD 169	RETAIL SALES TAX – RETAILING B&O TAX – MEASURE OF TAX --PRIME CONTRACTOR –FORM OVER SUBSTANCE.Payment by a consumer of a contractor’s liability is includable in the contractor’s tax measure.Taxpayers are free to choose the form of their business relationship, and where their conduct is consistent with that form, there is no reason to disregard the form chosen by the taxpayers.