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Is contractor labor taxable in Arizona?

In Arizona, contractors do not pay transaction privilege (sales) tax on the materials that they purchase. Instead, transaction privilege tax is calculated on the gross proceeds of the sales or gross income derived from the job, including labor.

How do I become a contractor in Arizona?

What are the steps to getting a contractor license in Arizona? Identify a Qualifying Party who meets minimum requirements. Pass examinations. Submit to background checks. Form a legal entity. Obtain a bond. Pay required fees. Provide Government issued identification. Complete and submit application.

How long does a contractor have to warranty his work in Arizona?

It is common sense that a contractor must meet the terms of their contract for a project, but the implied warranty is not as well known. Express warranties are covered by the two-year statute of limitations in Arizona, but implied warranties are generally covered for up to six years after the issue or defect is found.

Is it illegal to hire an unlicensed contractor in Arizona?

The minimum penalty for contracting without a license as a first offense is a fine of $1,000 plus an 83% surcharge. A.R.S. 32-1164(B). In most cases, an unlicensed contractor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious.

Are handyman services taxable in Arizona?

Voters in Arizona have overwhelmingly approved a constitutional amendment prohibiting state and local governments from taxing any service not subject to tax as of December 31, 2017. It also bans state and local governments from increasing existing taxes on services.

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