HB 2594
Initials VP/MG Page 1 Ways & Means
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HB 2594: TPT; prime contracting; exemption; alterations
Sponsor: Representative Carbone, LD 25
Committee on Ways & Means
Overview
Modifies the definitions of alteration and modification under the prime contracting
classification.
History
A.R.S. § 42-5075 defines alteration as an activity or action that causes a direct physical
change to existing property. For residential property, the definition of alteration does not
apply if the contract amount is more than 25% of the most recent full cash value (FCV) as of
the date of any bid for the work or the date of the contract, whichever value is higher.
Modification is defined as construction, grading and leveling ground, wreckage or demolition.
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. (Sec. 1)
2. Limits the contract amount of existing property that is not under the roof of the existing
residential structure to be defined as an alteration to 15% of the most recent FMV as of
the date of any bid for the work or the date of the contract. (Sec. 1)
3. Limits the contract amount for all existing property other than existing residential
property to be defined as an alteration to $750,000. (Sec. 1)
4. Defines modification as construction, grading and leveling grand, wreckage, demolition
or other activities or actions that increase the square footage of the existing residential
structure under the roof. (Sec. 1)
5. Defines residential as property that is properly classified as class two property and that
is used for residential purposes, class three property or class four property. (Sec. 1)
6. Applies to contracts, bids or other binding obligations entered beginning January 1, 2025.
(Sec. 2)
7. Makes technical and conforming changes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note