Common use of SALES TAX SAVINGS Clause in Contracts

SALES TAX SAVINGS. Per Act 2013-205 as codified in Title 40, Chapter 9, Article 14.1, Section (h) of the Code of Alabama, 1975, as amended: “The intent of this section is to lower the administrative cost for the governmental entity, contractor, and subcontractor for public works projects. It is not the intent of this section to change the basis for determining professional services from fair market value, which may include sales and use taxes.” If the Basic Fee is determined by a Basic Fee Rate, unless otherwise provided in the Special Provisions of the Agreement, the Architect shall be paid a Basic Fee to be based on a Cost of Work to include Sales Tax Savings. Once the construction contract has been awarded, the Architect shall modify the Agreement through an Amendment to include the Sales Tax Savings per DCM Form C- 3A as part of the Cost of the Work in order to correctly calculate the Basic Fee.