Arizona – Notice Addresses Changes To Prime Contracting Classification For TPT

SALT Report 3534 – The Arizona Department of Revenue has released a notice which addresses various questions and gives examples involving changes to the prime contracting classification for Transaction Privilege Tax (TPT).  A total of 18 questions and 17 examples are given.  Some of the Frequently Asked Questions include:

  • Who is a contractor?
  • Who is required to obtain a TPT license under the prime contracting classification?
  • Who is not required to obtain a TPT license under the prime contracting classification?
  • What are taxable modification activities, for purposes of the prime contracting TPT?
  • What are “maintenance”, “repair”, “replacement”, and “alteration” activities, which generally are not subject to prime contracting TPT?

For Further Information:

AZ DOR TPN 14-1