Manufactured building dealer
In short
A dealer in manufactured, mobile, or factory-built buildings. The state places the dealer inside the prime contracting classification; cities tax the same sales elsewhere.
In full
A manufactured building is a manufactured home, a mobile home, or a factory-built building, as those terms are defined in A.R.S. § 41-4001.
A manufactured building dealer is either a dealer licensed under A.R.S. title 41, chapter 37, article 4 who sells manufactured buildings to the final consumer, or a person who supervises, performs, or coordinates the excavation and completion of site improvements or the setup of a manufactured building, including contracting with any subcontractor or specialty contractor to complete the contract. Either prong is enough.
The classification is the part contractors miss. A.R.S. § 42-5075(A) states that the prime contracting classification comprises two businesses — prime contracting, and the business of manufactured building dealer. A dealer is therefore taxed under prime contracting, on the same sixty-five percent base, without being a prime contractor in the ordinary sense.
Three carve-outs appear in the same subsection. Sales for resale to another manufactured building dealer are not subject to tax, and a sale to a lessor of manufactured buildings is not a sale for resale. The sale of a used manufactured building is not taxable, and a lease of a used manufactured building is not a sale of one.
Where the tax is owed depends on delivery. If the dealer contracts to deliver the building to a setup site in Arizona or performs the setup, the taxable situs is the setup site. If not, the situs is the dealership location where the building is delivered to the buyer. If the setup site is outside Arizona, the transaction is excluded from tax.
Furniture, furnishings, fixtures, appliances and attachments that are not incorporated as component parts of the building or of the setup site are deducted from the prime contracting base, and their sale may be taxed separately under the retail classification.
At the city level the treatment differs. Model City Tax Code § 415 excludes gross income from the sale of manufactured buildings from construction contracting and directs it to a separate section.
A.R.S. § 42-5075(A), (B)(3), (N), (S)(4), (S)(5), (S)(12); Model City Tax Code § 415(a)(3)