ADOR's reallocation right
In short
The Department's power to re-sort itemized charges that do not match the work described. It runs one way — a contractor has no matching right.
In full
On a mixed contract the charges are itemized by activity and the resulting percentages drive the outcome. The Evaluating Mixed Construction Contracts worksheet reserves the Department's right to reallocate those itemized charges where the contractual description or the itemized charges are not consistent with the chart.
This is a power ADOR holds, not a remedy available to the taxpayer. A contractor who allocated badly and wants the numbers re-sorted has no corresponding right and amends returns instead.
What it means in practice is that itemization protects the analysis only insofar as the itemization matches the work. Labeling a charge as replacement does not make it replacement. The worksheet says as much at the front, conditioning the whole analysis on amounts for each activity being separately identified and on the construction activity being accurately described in the contract or attached documents.
Two defaults nearby run the same direction. Where a contract on existing property carries a single lump sum and contains any alteration activity, the worksheet allocates the whole amount to alteration. And project elements may not be artificially separated from a contract to make a project qualify as an alteration — though on that one the burden of proof is the Department's.
ADOR Evaluating Mixed Construction Contracts worksheet, sections 1 and 2a