Classifications
7 entries in this section. Every term is a link — open one for the full definition, its sources, and related entries.
- Construction contracting classification The city-level name for contracting tax. Arizona cities tax construction contracting under the Model City Tax Code; the state taxes the same work under prime contracting.
- Modification Contracting work taxable under the prime contracting classification, covering new construction and alterations at or above the applicable threshold.
- MRRA Contracting work on existing property that is excluded from prime contracting tax. The tax applies to the materials rather than to the contract.
- Owner-Builder An owner who improves property and keeps it. The city tax arrives twenty-four months after the work is substantially complete, and only on what was built by contractors the owner released from liability.
- Prime contracting The state classification Modification work is taxed under, at 65% of gross. A classification, not a person — prime contractor is the role.
- Retail classification The classification taxing sales of tangible personal property. It reaches contractors twice — as buyers of materials, and as the fallback when prime contracting does not apply.
- Speculative Builder An owner who improves real property and sells it. The tax is a city tax on the selling price, and it accrues at close of escrow rather than on any contract.