Effective June 11, 2020, House Bill 2229 amends RCW 82.04.051 regarding the taxation of land development and management.
Defines land development or management (see below).
Excludes land development or management activities from services rendered in respect to construction activities.
The amendment to the law does not affect the department’s position on how the law is applied. Rather, this amendment affirms the department’s prior and current position.
Land development or management activities are excluded from the definition of services rendered in respect to construction, if the person providing the land development or management services meets one of the following:
Is not responsible for the constructing, building, repairing, improving, or decorating activities.
Is responsible for the constructing, building, repairing, improving, or decorating activities, but the initial contract was only for land development or management services, and the person can prove that at the time of the first contract, it was not contemplated by the parties that the same person would be awarded both contracts.
For more information: Washington Department of RevenueWashington Department of Revenue
June 23, 2020