At a recent construction industry conference our presentation brought to the attention of the Washington Department of Revenue certain problematic areas of tax administration. The Department took quick corrective action and responded to the issues by publishing new guidance on the distinction between subcontractor services (which may be purchased for resale) and rental of equipment with an operator (which is always subject to sales tax). Notably, the guidance clarified that concrete pumping services are presumed by the Department to be subcontractor services which are eligible to be purchased with a resale certificate or reseller's permit. This position was not consistently stated in the past so many contractors may have been given contradictory advice. 

 
Result #1: By instructing at the tax conference and working closely with the Department of Revenue to solve problematic areas of taxation, additional clarity has been obtained for the construction industry. More specifically, contractors who have previously paid sales tax on the purchase of concrete pumping services may be eligible for a refund. Several contractors have contacted us stating that they are due tax refunds exceeding $5,000. What a wonderful holiday gift!
 
If you know of a construction company that may have paid sales tax on concrete pumping services during 2005, they should be notified that a refund claim must be filed by 12/31/09. For more information on how to file refund claims, contact Darcy Kooiker, CPA, Principal, Director of State and Local Tax Services at 425.454.7990 or dkooiker@bpcpa.com.