Glossary · Forms & Certificates
Form 5000 — Transaction Privilege Tax Exemption Certificate
In short
Arizona's general exemption certificate. A purchaser completes it and gives it to the vendor to buy without tax; contracting is one of seventeen reasons it offers.
In full
Form 5000 is the Transaction Privilege Tax Exemption Certificate. Its stated purpose is to document and establish a basis for state and city tax deductions or exemptions — not to document a contract. The purchaser completes it and furnishes it to the vendor at the time of the sale, and the vendor retains it. It is not filed with the Department; the form carries no submission instruction.
It is a general certificate, and a contractor is one kind of purchaser using it. Section D lists seventeen exemption reasons, running from leased property and restaurant food to railroad rolling stock and prison food service. Reason 2 is the contracting one: tangible personal property to be incorporated into a taxable contracting project, or a maintenance, repair, replacement or alteration project.
That single box covers both classifications. Checking reason 2 records that the property is going into a construction project; it does not record whether the contract is Modification or MRRA, and the certificate asks nothing further about it. Where the materials end up on an MRRA contract, the retail equivalent is owed later under A.R.S. § 42-5008.01 — nothing on this certificate says so.
Two constraints are easy to miss. Only one category of exemption may be claimed on a certificate, and Section C forces one transaction type per certificate: with a business, with Native Americans, Native American businesses and tribal governments, with a U.S. Government entity, or with a foreign diplomat.
Two exclusions are printed on the first page. Form 5000 is not used to claim a sale for resale — Form 5000A is. And a contractor holding no TPT license does not use Form 5000 at all — Form 5000M is that certificate.
An incomplete certificate is not treated as accepted in good faith. A vendor accepting one in good faith is relieved of the burden of proving the deduction, and the purchaser may then be required to establish that the exemption was accurate.
Arizona Form 5000, Transaction Privilege Tax Exemption Certificate (ADOR 10308, 02/26); A.R.S. §§ 42-5009, 42-5008.01