Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-171 - Building, repairing or improving streets, roads, etc., which are owned by a municipal corporation or political subdivision of the state or by the United States and which are used primarily for foot or vehicular traffic

Current through Register Vol. 24-14, July 15, 2024
Definitions
As used herein:
The word "contractor" means a person engaged in the business of
				building, repairing or improving any street, place, road, highway, easement,
				right of way, mass public transportation terminal or parking facility, bridge,
				tunnel, or trestle which is owned by a municipal corporation or political
				subdivision of the state or by the United States and which is used or to be
				used primarily for foot or vehicular traffic, either as a prime contractor or
				as a subcontractor. It does not include persons who merely sell or deliver road
				materials to such contractors or to the public authority whose property is
				being improved. It also does not include persons who construct streets, roads,
				etc.
owned by the state of Washington.
(See WAC
				458-20-170 for the tax liability
				of such persons.)
The term "street, place, road, highway, etc." is used in the
				ordinary sense that the combination of such words implies. It includes docks
				used primarily by ferry boats operated in connection with a street, road or
				highway, but does not include railroads, wharves, moorings, hallways, catwalks,
				or runways, aprons or taxiways for the landing, take-off or movement of
				airplanes within airports or landing fields; nor does it include ferry boats,
				even though the ferry be operated in connection with a street, road or highway.
				It includes roads and walks which are not open to the public generally, but
				which may be restricted to use by the military or by employees of a department
				or instrumentality of the United States.
The word "place" means only an area similar to a street or
				pedestrian walk, such as thoroughfares in various cities designated "places"
				for the purpose of preserving the continuity of street names or house numbers;
				generally, a street of shorter length than others.
The term "building, repairing or improving of a publicly owned
				street, place, road, etc.," includes clearing, grading, graveling, oiling,
				paving and the cleaning thereof; the constructing of tunnels, guard rails,
				fences, walks and drainage facilities, the planting of trees, shrubs and
				flowers therein, the placing of street and road signs, the striping of
				roadways, and the painting of bridges and trestles; it also includes the
				mining, sorting, crushing, screening, washing and hauling of sand, gravel, and
				rock taken from a public pit or quarry. It also includes the constructing of
				road and street lighting systems, even though portions of such systems also are
				used for purposes other than street and road lighting; also the constructing of
				a drainage system in streets and roads, even though such system is also used
				for the carrying of sewage: Provided, That the drainage facilities are
				sufficient for disposal of the normal runoff of surface waters from the
				particular streets and roads in which the system is constructed or an ordinance
				authorizing the construction of a combined sewer system is incorporated by
				reference in the contract and the contract or specifications clearly indicate
				that the system is designed and intended for the disposal of the normal runoff
				of surface waters from the streets and roads in which the system is
				constructed.
The term includes any contract for the readjustment,
				reconstruction or relocation of the facilities of any public, private or
				cooperatively owned utility or railroad in the course of building, repairing or
				improving a street, place, road, etc., which is owned by a municipal
				corporation or political subdivision of the state or by the United States, the
				cost of which readjustment, reconstruction, or relocation is the responsibility
				of the public authority whose street, place, road, etc., is being built,
				repaired or improved. It also includes building or repairing mass
				transportation facilities owned by a municipal corporation or political
				subdivision of the state or by the United States.
Except as provided above, the term does not include the
				constructing of water mains, telephone, telegraph, electrical power, or other
				conduits or lines in or above streets or roads, unless such power lines become
				a part of a street or road lighting system as aforesaid; nor does it include
				the constructing of sewage disposal facilities, nor the installing of sewer
				pipes for sanitation, unless the installation thereof is within, and a part of,
				a street or road drainage system.
Business and Occupation Tax
Such contractors are taxable under the public road construction
				classification upon their total contract price.
The business and occupation tax does not apply to the cost of
				or charge made for labor and services performed in respect to the mining,
				sorting, crushing, screening, washing, hauling, and stockpiling of sand,
				gravel, and rock, when such sand, gravel, or rock is taken from a pit or quarry
				which is owned by or leased to a county or city and such sand, gravel or rock
				is
(a) Stockpiled in said pit or
			 quarry for placement on the street, road, or highway by the county or city
			 itself using its own employees, or
(b) Placed on the street, road, or highway by
			 the county or city itself using its own employees, or
(c) Sold by the county or city at actual cost
			 to another county or city for road use.
Retail Sales Tax
The retail sales tax applies upon the sale to such contractors
				of all materials including prefabricated and precast items, equipment and
				supplies used or consumed in the performance of such contracts.
The retail sales tax does not apply upon any portion of the
				charge made by such contractors.
The sales tax does not apply to charges made for labor and
				services which are exempt from business tax as indicated above.
Use Tax
The use tax applies to the use by all contractors of all
				materials including prefabricated and precast items, equipment and supplies
				upon which the retail sales tax has not been paid. This tax also applies in
				respect to articles produced or manufactured by them for commercial use. (See
				WAC 458-20-134.)
The use tax does not apply in respect to the use of any sand,
				gravel, or rock to the extent of the cost of or charges made for labor and
				services performed in respect to the mining, sorting, crushing, screening,
				washing, hauling, and stockpiling such sand, gravel, or rock, when such sand,
				gravel, or rock is taken from a pit or quarry which is owned by or leased to a
				county or a city, and such sand, gravel, or rock is either (1) stockpiled in
				said pit or quarry for placement or is placed on the street, road, place, or
				highway of the county or city by the county or city itself (i.e., by its own
				employees), or (2) sold by the county or city to a county or a city at actual
				cost for placement on a street, road, place, or highway owned by the county or
				city. This exemption shall not apply to the use of such material to the extent
				of the cost of or charge made for such labor and services, if the material is
				used for other than public road purposes or is sold otherwise than as here
				indicated.
(For lien of unpaid taxes on the retained percentage withheld
				on public improvement contract, see WAC
				458-20-217.)
Order ET 71-1, § 458-20-171, filed 7/22/71; Order ET
				  70-3, § 458-20-171 (Rule 171), filed 5/29/70, effective
				  7/1/70.