Change in Dept. of Revenue Release Threshold

Substitute House Bill 1328 was approved by the Legislative in the spring. One of the things this new law does is to increase the dollar threshold for when public agencies must obtain a release from the Washington State Department of Revenue. The Revenue release verifies that the contractor on a public works project has paid state excise taxes, and must be obtained by public agencies prior to release of retainage to the contractor. The legislation increases the threshold from $20,000 to $35,000. SHB 1328 went into effect on July 22, 2007.

According to the Department of Revenue, for any public works contract awarded prior to July 22, 2007, the $20,000 threshold applies. The new $35,000 threshold only applies for public works projects awarded on or after July 22, 2007.