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On Wednesday, March 20th the Senate Finance Committee will consider an amendment to HB 2111 that will make changes in the prime contracting statutue.  While we are awaiting the exact language of the amendment, these are the main points affecting commercial contracting:

1. Leave prime contracting in place for public road projects.

2. For commercial and residential projects allow the cities to keep prime contracting procedures as is. 

3. The state would abandon prime contracting and tax material for commercial and residential at the point of sale.

4. There may be adjustment of the 65 percent factor to try to equalize the total tax paid.

Since last summer ABA has been meeting with the Governor’s Transaction Privilege Task Force in an effort to simplify the TPT statute.  That effort appears to have failed and instead, the Legislature is considering an even more tortuous law than we now have!

Please contact the members of the Senate Finance Committee and ask them to oppose changing the current law on prime contracting.  The members of the Finance Committee are:


Chairman Steve Yarbrough – 602.926.5863 – syarbrough@azleg.gov

Vice Chairman Bob Worsley – 602.926.5760 – bworsley@azleg.gov

Senator Olivia Cajero Bedford – 602.926.5835 – ocajerobedford@azleg.gov

Senator Rich Crandall – 602.926.3020 – rcrandall@azleg.gov

Senator Steve Farley – 602.926.3022 – sfarley@azleg.gov

Senator Robert Meza – 602.926.3425 – rmeza@azleg.gov

Senator Michelle Reagan – 602.926.5828 – mreagan@azleg.gov


Thank you for your efforts.

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