Business code
In short
The number on the return that says which classification income is being reported under. For a contractor it is the difference between taxing a contract and taxing materials.
In full
A business code identifies the classification income is reported under on the transaction privilege tax return. It is entered on the transaction detail page alongside the region code, and it determines the rate applied and the deductions available.
For contracting the codes are few and the distinctions between them are the whole subject. Prime contracting income is reported under 015. The retail equivalent on materials used in an MRRA project is reported under 315 — a separate code, not a variant of 015. Speculative Builder and Owner-Builder are city classifications with their own codes, and there is no state equivalent for either.
One consequence catches contractors out. All contracting revenue, including MRRA revenue, is reported under 015 as gross income; the MRRA portion is then removed by deduction code 500. MRRA income is not simply left off the return.
Code 315 is reported on the gross cost of the materials, with no markup, at the job-site rate, in the period the materials are used.
Codes are entered per region. A contractor working three jurisdictions files three rows, and a deduction claimed under the wrong code is a mismatch visible on the face of the return.
| Code | Reported under | What it carries |
|---|---|---|
| 015 | State and city | Prime contracting income, and all contracting gross income before the MRRA deduction |
| 315 | State and city | Retail equivalent on materials used in an MRRA project, at gross cost |
| 016 | City only | Speculative builder |
| 037 | City only | Owner-builder |
| 017 | State and city | Retail — the classification a materials vendor reports under |
ADOR TPT Deduction Codes listing, updated 2026-08-01; ADOR Modification v MRRA Summary; ADOR MRRA Contracting; A.R.S. § 42-5075