Change to Annual Bond Exemption Certificates

Since the beginning of 2018, the Arizona Department of Revenue is no longer issuing paper Annual Bond Exemption Certificates to in-state contractors in good standing. Instead, the department now provides an electronic listing of qualified exempt contractors to each city.

When applying for a building permit, the local city building authorities may confirm with their city that a contractor is on the exemption list.

If not on the list, the city will not issue the permit without certification from the Department of Revenue that the contractor has satisfied bonding requirements as set forth in A.R.S. § 42-5007 or is exempt from bonding obligations for the project. The department may still issue a one-time exemption certificate for individual projects to qualified contractors.

Benefits of this new e-process include contractors no longer having to wait for a mailing from ADOR, cities now having access to all qualified contractors through an online information access system and the savings of taxpayer dollars from reduced processing time and supplies for the Department of Revenue.

Please reference Publication 539 Taxpayer Bonds.

For more information, go to www.azdor.gov or contact ADOR’s License and Registration Bond Team.

Wednesday, June 27, 2018