APPENDIX
TWO OF FOUR EXPERIMENTAL INSTRUMENTS
(treatment in bold italics for this appendix only)
Cell 1, No Penalty, No Affidavit Correspondence
September 22, 2003
[FIRM NAME]
[FIRM ADDRESS]
Please review your purchases for possible unpaid use tax
Dear Taxpayer:
According to our records, you have recently reported use tax on your Combined Excise Tax
Returns. Because construction businesses typically owe use tax, we are asking you to review the
purchases you have made since January 1, 2000, for possible unpaid tax. Use tax is only due when
sales tax has not been paid.
What To Look For
Look for major purchases on which you may owe usé tax, such as:
• materials, hired contractors, and labor 4 tools and equipment
purchased for speculative building
• rental equipment with or without operator • office furniture, equipment, and supplies
Speculative huilders:
• are huilders who make improvements on land they own.
• owe sales or use tax on all huilding materials, all charges from other contractors, and all items
consumed in speculative huilding projects.
Custom huilders:
• are huilders who make improvements on land owned by another.
• do not owe sales or use tax on materials incorporated into custom construction projects.
• owe sales or use tax on all items consumed (tools, equipment, supplies, etc.).
If You Owe Additional Use Tax
Report the total cost of purchases described above on the following lines of your next Combined
Excise Tax Return:
• Use tax line (line 17)
• Local use tax line (line 23)
• Region Transit Authority (RTA) line, if you are located within the RTA district (line 26).
If You Do Not Owe Additional Use Tax
• No filing is required of you at this time.
For tax assistance, visit http://dor.wa.gov or call (800) 647-7706. To inquire about the availability
of this document in an alternate format for the visually impaired, please call (360) 486-2342.
Teletype (TTY) users please caU (800) 451-7985.
Cell 4, Penalty, Affidavit Correspondence
September 22, 2003
[FIRM NAME]
[FIRM ADDRESS]