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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
Senate: MAPS DP 7-0-0-0 | 3rd Read 28-1-1-0House: APPROP DPA/SE 14-0-1-0 |
SB 1335: deputy constable appointments; website notification
S/E: TPT; prime contracting; senior housing
Sponsor: Senator Shamp, LD 29
Caucus & COW
Summary of the Strike-Everything Amendment to SB 1335
Overview
Retroactive to January 1, 2023, expands the types of nonprofits that are eligible for the senior nonprofit housing deductions from the prime contracting transaction privilege tax (TPT).
History
Arizona levies TPT on various classifications of business activity. The tax base for prime contracting classification of TPT is 65% of the gross proceeds or gross income derived from prime contracting business, with certain amounts deducted before computing the tax base.
One of these deductions from the prime contracting TPT base is for contracts for the construction of a residential apartment housing facility that qualifies for a federal housing subsidy for low-income individuals over the age of 62, if the facility is owned by a 501(c)(3) nonprofit (A.R.S. § 42-5075).
Provisions
1.
Allows the senior nonprofit housing deduction
from the prime contracting classification of TPT to include:
a) Wholly owned subsidiaries of a 501(c)(3) corporation;
b) 501(c)(4) corporations or wholly owned subsidiaries of a 501(c)(4) corporation; and
c) Limited partnerships or limited liability companies in which the general partner or managing member is an eligible nonprofit corporation or single purpose entity that is wholly owned by one or mor eligible nonprofit corporations. (Sec. 1)
2. Defines federal housing subsidy. (Sec. 1)
3. Applies retroactively beginning in Tax Year 2023. (Sec. 2)
4. Makes technical changes. (Sec. 1)
Amendments
Committee on Appropriations
1. Adopted the strike-everything amendment.
2. Makes clarifying changes.
3.
4.
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6. SB 1335
7. Initials AF Page 0 Caucus & COW
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