Annual Bond Exemption Expires this Month
Phoenix, AZ—Construction Contractors - The Annual Bond Exemption will expire on July 31. The Arizona Department of Revenue is no longer issuing paper Annual Bond Exemption Certificates to in-state contractors in good standing. Instead, the Department provides an electronic listing of qualified exempt contractors to each city and town on August 1.
An Annual Bond Exemption serves as documentation to city building authorities that contractors have met the bonding requirements under A.R.S. 42-5007 for modification projects valued at $50,000 or more. To qualify for an annual exemption, you must meet all of the following criteria:
- The start date of the transaction privilege license must be at least one year before the current date.
- Cannot have more than two delinquencies in the past 12 consecutive months.
- No more than $500 in tax liabilities are currently due.
- The mailing or physical address must be an Arizona address.
- A minimum of $10.00 was paid in tax liability for the past 12 consecutive months.
Thursday, July 7, 2022