Cost Plus For Construction In Washington
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FAQ
Contractor expenses, often referred to as Overhead and Profit (O&P) is intended to cover the general contractor's overhead and operating costs, as well as profit. It is typically estimated at 20% of the total amount of the contractor's own rebuild or renovation estimate.
Professional services are generally not taxable in Washington State. However, some services are subject to sales tax. “Constructing and decorating real or personal property for others” is taxable.
Non-itemized charges: Generally, when IT products and services are sold as a non-itemized package, the entire transaction is subject to retail sales or use tax.
Services to individuals and businesses – things like haircuts, medical bills, consultant fees, etc. – are not “personal property,” and are most often not subject to sales tax. However, some services are subject to sales tax, as listed in RCW 82.04. 050.
