Glossary · Forms & Certificates
Form 5005 — Contractor’s Certificate
In short
The certificate by which a contractor takes on the tax liability for a project and tells its subcontractors so. It covers prime contracting and MRRA work alike.
In full
Form 5005 is the Contractor's Certificate for Prime Contracting and MRRA. The contractor issuing it assumes the liability; the subcontractors receiving it are the ones protected. It runs downward, from the contractor to the subcontractors, and the direction is the first thing to get right.
It does two things at once. It provides a subcontractor the validation required for exemption from prime contracting tax, and it provides exemption from liability for an amount equal to retail tax on materials incorporated into a maintenance, repair, replacement or alteration project. Which of those it is doing depends on how the project is designated on the form: MRRA or Modification.
Because it establishes liability, the form states that it must be completed by the contractor assuming that liability, and the signature certifies that the contractor is licensed for TPT purposes and is assuming the prime contracting tax liability, the retail-equivalent liability, or both.
It can be issued three ways. As a single project certificate, which requires a project description sufficient to identify the location. Or as a blanket certificate, either for a stated period or until revoked. The blanket form carries a consequence the certificate states plainly: the prime contractor is responsible for every contract during the period, regardless of contract designation. A specific project exclusion box is available to carve individual projects or periods back out.
Completion is not optional. The asterisked fields must be completed or the certificate is not valid, and the form provides that the Department may disregard an incomplete or erroneous certificate under A.R.S. § 42-5008.01 or § 42-5075(E). If it is disregarded, the subcontractor that accepted it carries the burden of proving it is not liable.
The prime provides the certificate to the subcontractors and retains a copy. It is not sent to the Department.
Arizona Form 5005, Contractor's Certificate — Prime Contracting and MRRA (ADOR 10313, 11/24); A.R.S. §§ 42-5075(D), (E), 42-5008.01