Construction
1 The business activities
In Washington, a prime contractor on a custom job for a private owner collects retail sales tax on the whole contract price, and reports it under retailing B and O. Sundry knows whether your client is the prime contractor, a subcontractor or a speculative builder, and applies the right rule.
2 What's taxable
A speculative builder who owns the land is the consumer of the materials, and the sale of the finished home is subject to real estate excise tax, not sales tax, unless the buyer signs before the home is finished. And the local sales tax rate follows the job site, not the contractor's office.
3 The exemption proof it needs
A subcontractor on a custom job charges no sales tax when the prime gives him a reseller permit. Without one, he charges it.
4 The returns it files
A contractor working in several cities can owe B and O to each city that has one, based on where the jobs are, even with no office there. Pay late, and the penalty runs nine, then nineteen, then twenty-nine percent in total.