HB 2807
Initials VP/AA Page 1 Ways & Means
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
HB 2807: TPT; prime contracting; exemption; alterations
Sponsor: Representative Carbone, LD 25
Committee on Ways & Means
Overview
Modifies the definition of alteration and modification under the prime contracting classification.
History
Statute defines alteration as an activity or action that causes a direct physical change to existing
property with separate provisions for residential and commercial property. Also, the law allows for
the original contract amount to be exceeded by no more than 25% if the work performed qualifies
as an alteration. Modification is currently defined as construction, grading and leveling ground,
wreckage or demolition. (A.R.S. § 42-5075.R.1 and 6)
Provisions
1. Defines alteration as an activity or action that causes a direct physical change to existing
property and that does not increase the square footage of the existing residential structure
under the roof. (Sec. 1)
2. Provides that for all existing property other than existing residential property, that the definition
of alteration does not apply if the contract amount is more than $750,000. (Sec. 1)
3. Defines modification as construction, grading and leveling ground, wreckage, demolition or
other activities that increase the square footage of the existing residential structure under the
roof. (Sec. 1)
4. Defines residential. (Sec.1)
5. Provides an effective date of January 1, 2024. (Sec. 2)
6. Makes technical and conforming changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note