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LT-2026-006 PUNCH PROJECTS
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<br />_______2026 County Lodging Tax Funding Agreement Page 4
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<br />e. Taxes: Contractor understands and acknowledges that neither the County will not withhold
<br />Federal or State income taxes from payments made to Contractor. Where required by State
<br />or Federal law, Contractor authorizes the County to make withholding for any taxes other
<br />than income taxes (e.g., Medicare). All compensation received by Contractor will be reported
<br />to the Internal Revenue Service at the end of the calendar year in accordance with applicable
<br />IRS regulations. It is the responsibility of Contractor to make its necessary estimated tax
<br />payments throughout the year, if any, and Contractor is solely liable for any tax obligation
<br />arising from Contractor’s performance of this Agreement.
<br />The County will pay sales and use taxes imposed on goods or services acquired hereunder as
<br />required by law. Contractor must pay all other taxes, including but not limited to: business
<br />and occupation tax; or taxes based on (1) Contractor’s gross or net income, or (2) personal
<br />property to which the County does not hold title. The County is exempt from federal excise
<br />tax.
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<br />f. Non-Transferability of Grant Assets: The Grantee is prohibited from pledging, mortgaging,
<br />assigning, or otherwise encumbering any grant funds or property acquired or improved with
<br />such funds. Any such attempt shall be considered null and void and unenforceable against
<br />Kittitas County.
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<br />Section 4. Indemnification.
<br />To the fullest extent permitted by law, Contractor agrees to indemnify, defend and hold the County
<br />and their departments, elected and appointed officials, employees, agents and volunteers, harmless
<br />from and against any and all claims, damages, losses and expenses, including but not limited to court
<br />costs, attorney's fees and alternative dispute resolution costs, for any personal or bodily injury,
<br />sickness, disease or death, for any damage to or destruction of any property (including the loss of
<br />use resulting therefrom), and for any other claims, damages, losses, and expenses sustained by the
<br />County, which (1) are caused in whole or in part by any act or omission, negligent or otherwise, of
<br />Contractor, its employees, agents or volunteers, or Contractor’s subcontractors, their employees,
<br />agents or volunteers; or (2) are directly or indirectly arising out of, resulting from, or otherwise
<br />connected with the performance of this Agreement; or (3) are based upon Contractor’s or its
<br />subcontractors’ use of, presence upon or proximity to the property of the County. This
<br />indemnification obligation of Contractor shall not apply in the limited circumstance where the claim,
<br />damage, loss or expense is caused by the sole negligence of the County. This indemnification
<br />obligation of Contractor shall not be limited in any way by the Washington State Industrial Insurance
<br />Act, RCW Title 51, or by application of any other workmen's compensation act, disability benefit act
<br />or other employee benefit act, and Contractor hereby expressly waives any immunity afforded by
<br />such acts. The foregoing indemnification obligations of Contractor are a material inducement to
<br />the County to enter into this Agreement, are reflected in Contractor’s compensation, and have
<br />been mutually negotiated by the parties.
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<br />The County reserves the right, but not the obligation, to participate in the defense of any claim for
<br />damages, losses or expenses, and such participation shall not constitute a waiver of Contractor’s
<br />indemnity obligations contained in any section of this Agreement.
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