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?
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