DOR Suspends Concrete Pumping Guidance
November 25, 2019
BIAW has positive news to announce regarding our efforts to prevent the Washington Department of Revenue (DOR) from enacting recent guidance around sales tax and concrete pumping. Friday, Nov. 22, DOR notified legislators that they will suspend implementation of the concrete pumping guidance immediately until April of 2020 to allow the Legislature time to consider legislative action.
As a reminder, DOR had quietly changed its enforcement guidance to require those hiring concrete pumpers to pay sales tax on the contract, even though the concrete then is resold as part of a whole building. Enforcement began on October 1, 2019, with no warning to the industry. DOR also started rulemaking to modify the WACs to enforce the policy in the guidance. BIAW, along with ABC Inland Pacific, Washington Aggregates and Concrete Association and their respective members attended a hearing on October 30, where BIAW General Counsel Jackson Maynard advocated against this change. BIAW’s Legal team also submitted written comment outlining what this regulation will cost our state and industry. In addition, at the request of BIAW’s Government Affairs team, legislators met with DOR and sent a letter requesting they back off.
In short these combined efforts worked. BIAW offers thanks to Senators Mark Schoesler (R-Ritzville), Shelly Short (R-Addy), Mike Padden (R-Spokane Valley), and Representatives Brian Blake (D-Aberdeen), Mike Chapman (D-Port Angeles), and Thomas Dent (R-Moses Lake). Their efforts, in tandem with the construction industry, played a pivotal role in delaying the implementation of the new guidance.
Our work does not end here as we will also be seeking a legislative fix in 2020. Otherwise, DOR will implement the guidance in April 2020. However, this outcome is the result of quick action by BIAW members reaching out to the association – part of the value of membership is having an organization like BIAW that has industry coalitions, relationships with legislators, and in the agencies that all helped give voice and stop a bad idea.
If you have questions, please contact BIAW Government Affairs Director Jan Himebaugh at 360-352-7800 ext. 135 or email janh@biaw.com.