Washington Sales Tax for Contractors

Watch our short Youtube video on how Construction Management is taxed

Business and Occupation (B&O) Tax
Retail Sales Tax
Wholesale
Use as a Consumer
Purchases for Resale
Use Tax
Deferred Sales Tax
Gross Contract Price
Disputed Billing
Penalty Clause
Construction Activities
Construction Categories
Custom Construction
Prime Contracting
Subcontracting
Speculative Building
Federal Government Contracting
Public Road Construction
Logging Road Construction
Construction in Indian Country
Custom Prime Contractor
Custom Prime Contractor - Consumer
Bid, Contract, Pay Estimate, or Draw Request
Sales Tax Separately Stated - Example
Sales Tax Separately Stated – Scenario 1
Sales Tax Separately Stated - Scenario 2
Sales Tax Separately Stated - Scenario 3
Retainage
Retainage - Example
Line Item Billing
Line Item Billing - Example
Local Tax Rates
Paying Retail Sales Tax
Reseller Permit
Equipment Rental
Equipment Rental – Single Payment
Equipment Rental – Periodic Payments
Equipment Rental with Operator Services
Equipment Rental with Operator Services - Example
Equipment Rental with Subcontractor Services
Equipment Rental with Subcontractor Services - Example
Working Directly for Landowner
Services Rendered in Respect to Constructing
Responsible for the Performance
Professional Services
Land Development & Management
Construction Management
Related Parties
Solid Fuel Burning Devices
Other Income
Deductions
Sales Tax Paid on Materials
Out-of-State Construction
Manufacturing and R&D
High Unemployment Counties

Farmworker Housing
Youth Housing
Other Types of Prime Contracting
Subcontracting Activities
Land Ownership
Land Ownership - Example
Title Transfers
Selling during Construction
Joint Venture
Road Building on Speculative Projects
Government Contractor
Government Contractor - Consumer
Public Road Building Activities
Roads Dedicated to City or County
Public Road Contractor as Consumer
Off-site Asphalt Plant
Rock Removal
Job Site Plants
Rock Processing by Political Subdivisions
Material Providers
Bifurcation of Contract Activity
Contaminated Site Cleanup
Service Activities
Retail Activities
Hauling Activities
Bare Land or Water Cleanup
Combination Contracts
Construction Services performed in Indian Country by Non-Enrolled Persons
Indian Country – Prime Contractors
Indian Country – Subcontractors
Indian Country – Construction for Non-Indians
Indian Country – Federal Government Construction
Indian Country – Exemption Documentation
Indian Country – Current Tribes
Indian - Definition
Indian Country - Definition
Tribe - Definition
Materials - Definition
Consumables - Definition
Out-of-State Contractors
Out-of-State Contractors – Use Tax
UBI Numbers
Tax Paid at Source Deduction
Tax Paid at Source Deduction - Example
Sales Tax Paid to Other States
Other Scenarios – Public Road Construction
Other Scenarios – Government Contracting
Other Scenarios – State or Private Road Construction
Temporary Staffing
Summary – Prime Contractor
Summary – Subcontractor
Summary – Speculative Builder
Summary – Public Road Contractor
Summary – Logging Road Contractor
Summary – Government Contractor

This course gives a detailed overview of Washington sales and B&O tax as applicable to construction business. It also covers basic sales tax concepts which form the foundation of accurate filing and compliance. The specific topics covered have been listed below.

The intended audience for this course are contractors, their bookkeeper or CPA, and their suppliers. There is no prior knowledge pre-requisite as the course defines all the necessary basic concepts. After successful completion, the course taker would be in a better position to handle taxability of various sales and purchase transactions they encounter in their daily work.

The content has been adopted from resources published by the Washington State Department of Revenue (WA DOR). It is presented for educational purposes only and not meant to construe legal or tax advice.

Topics covered: