ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: WM DP 6-4-0-0 | 3rd Read 31-28-1-0

HB 2701: TPT; prime contracting; tax base

Sponsor: Representative Biasiucci, LD 5

House Engrossed

Overview

Reduces the prime contracting classification tax base to 60% of the gross proceeds of sales or gross income for contracts, bids or other binding obligations entered into beginning July 1, 2023 and then to 55% beginning July 1, 2024.

History

The prime contracting classification is comprised of the business of prime contracting and the business of manufactured building dealer.  Current law provides that the tax base for the prime contracting classification is 65% of the gross proceeds of sales or gross income derived from the business.  (A.R.S. § 42-5075.B)

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal NoteSets the tax base to 60% for contracts, bids or other binding obligations entered into beginning July 1, 2023 and ending June 30, 2024.  (Sec. 1)

2.   Sets the tax base to 55% for contracts, bids or other binding obligations entered into beginning July 1, 2024.  (Sec. 1)

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6.                     HB 2701

7.   Initials  VP Page 0 House Engrossed

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