HB 2701
Initials VP Page 1 Ways & Means
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2701: TPT; prime contracting; tax base
Sponsor: Representative Biasiucci, LD 5
Committee on Ways & Means
Overview
Reduces the prime contracting classification tax base to 60% of the gross proceeds of sales or
gross income for contracts 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. Sets the tax base to 60% for contracts entered into beginning July 1, 2023 and ending June
30, 2024. (Sec. 1)
2. Sets the tax base to 55% for contracts entered into beginning July 1, 2024. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note