AdministrationQuestion 87 of 110

A base permit fee is $290. The jurisdiction adds a 12 percent state surcharge on the permit fee plus a flat $40 plan-review fee. What is the total the contractor pays?

a.$330.00
b.$364.80
c.$372.80
d.$380.80

Explanation

Total = (290 x 1.12) + 40 = 324.80 + 40 = $364.80. The surcharge applies only to the permit fee, then the flat plan-review fee is added afterward. Applying the 12 percent to the plan-review fee as well would overcharge the customer.

Law Reference: UPC §103.4

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