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46 <br /> 45.1. North Carolina sales tax and use tax, as required by law, apply to materials entering into county <br /> Work and such costs shall be included in all bid proposals and contract sums. <br /> 45.2. Local option sales and use taxes, as required by law, apply to materials entering into county Work <br /> as applicable and such costs shall be included in all bid proposals and contract sums. <br /> 45.3. The CMAR shall give the Owner a signed tax statement containing the information listed in G.S. <br /> 105-164.14(e)before any payment requests submitted will be due. <br /> 45.4. The Department of Revenue has agreed as of April 1, 1991 that in lieu of obtaining copies of sales <br /> receipts from Subcontractors, an agency may obtain a certified statement from the Subcontractor <br /> setting forth the date,the type of property and the cost of the property purchased from each vendor, <br /> the county in which the vendor made the sale and the amount of local sales and use taxes paid <br /> thereon. If the property was purchased out-of-state,the county in which the property was delivered <br /> should be listed. The Subcontractor should also be notified that the certified statement may be <br /> subject to audit. <br /> 45.5. In the event the CMAR makes several purchases from the same vendor, such certified statement <br /> must indicate the invoice numbers, the inclusive dates of the invoices, the total amount of the <br /> invoices,the counties, and the county sales and use taxes paid thereon. The position of a sale is the <br /> retailer's place of business located within a taxing county where the vendor becomes contractually <br /> obligated to make the sale. Therefore, it is important that the county tax be reported for the county <br /> of sale rather than the county of use.When property is purchased from out-of-state vendors and the <br /> county tax is charged, the county should be identified where delivery is made when reporting the <br /> county tax. Such statement must also include the cost of any tangible personal property withdrawn <br /> from the CMAR's warehouse stock and the amount of county sales or use tax paid thereon by the <br /> CMAR. Similar certified statements by its Subcontractors must be obtained by the CMAR and <br /> furnished. <br /> 45.6. The CMAR and its Subcontractors are not to include any tax paid on supplies,tools,and equipment <br /> which they use to perform their contracts and should include only those building materials, <br /> supplies, fixtures and equipment which actually become a part of or annexed to the building or <br /> structure. <br /> 45.7. Any sales tax refunds paid to the Owner shall be exclusively for the Owner's use and shall not in <br /> any way reduce the cost of the Project or impact the GMP. <br /> 46.PAYMENTS WITHHELD <br /> 46.1. The Project Designer may withhold a certificate for payment in whole or in part, to the extent <br /> reasonably necessary to protect the Owner. If the Project Designer is unable to certify payment in <br /> the amount of the application, the Project Designer will notify the CMAR and the Owner in <br /> writing.If the CMAR and Project Designer cannot agree on a revised amount,the Project Designer <br /> will promptly issue a certificate for payment for the amount for which the Project Designer is able <br /> to make such representations to the Owner. The Project Designer may also withhold a certificate <br /> for payment, in whole or in part, to such extent as may be necessary in the Project Designer's <br /> opinion to protect the Owner from loss for which the CMAR or the Subcontractor(s)is responsible, <br /> including loss resulting from acts and omissions,because of: <br /> 46.1.1. Defective Work not remedied; <br /> 46.1.2. Third party claims filed or reasonable evidence indicating probable filing of such claims <br /> unless security acceptable to the Owner is provided by the CMAR; <br /> Page 43 of 52 <br /> Revised 12/24,4/25 <br />