HB 2701
Initials VP Page 1 House Engrossed
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. Sets 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)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note