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Old 04-16-2014, 11:21 AM
 
Location: Whatcom County, WA
13 posts, read 17,124 times
Reputation: 12

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New to Washington -- coming from a state with a state income tax. I'm curious if anyone has built a home in recent years and exactly what they had to pay in sales taxes on the cost of construction. At first I heard the sales tax was on the "labor" by the contractor/sub-contractors, but some research makes it look like its on the entire contract.

Even more important is the deductibility of this sales tax, which does seem possible if Congress extends it. Senator Cantwell is trying:

See the section here on Retail Sales Tax WAC 458-20-170: Constructing and repairing of new or existing buildings or other structures upon real property.
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Old 04-16-2014, 02:13 PM
 
Location: WA
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I have not built an entire home but have contracted for substantial renovations. Had to pay sales taxes on everything including the permits.
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Old 04-16-2014, 02:48 PM
 
Location: Whatcom County, WA
13 posts, read 17,124 times
Reputation: 12
Thanks. This makes renewal of the IRS tax deduction for sales taxes even more important. If our home building project runs $500,000 the sales taxes in Whatcom County could be $42,000 That's a nice big deduction if we can do it. Nobody gets rich on tax deductions ( not regular people anyway ), but better than no deduction.
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