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Contractors engaging in taxable construction projects or activities are required to obtain a TPT license. New contractors and out-of-state contractors are required to be licensed with the Registrar of Contractors and, in most cases, must post a bond with the Arizona Department of Revenue (ADOR). Because of the bonding requirements for a new contractor, the online application is not allowed. The Arizona Joint Tax Application (JT-1) used to apply for a TPT License (and other licenses) may be accessed by clicking the link below. Submit the appropriate bonding paperwork with the paper JT-1; include a copy of the bond.
Download Arizona Joint Tax Application (JT-1) Form (PDF)
Download Taxpayer Bond for Contractors
New contractors, out-of-state contractors without a principal business location in Arizona, and contractors who have displayed a history of TPT noncompliance are generally required to provide a bond to the Department to ensure payment of taxes. A principal place of business is defined by statute to mean that in the preceding 12 month period a contractor has maintained a facility in Arizona with at least one full-time employee.
The businesses subject to these bonds are grouped in accordance with the standard industry classifications by average business activity. The business classes and bond amounts are as follows:
|Taxpayer Bond for Contractors||Form 74-4023|
|Bond Exemption Application||Form 10205|
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.
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 e-process include contractors no longer having to wait for a mailing from ADOR, cities 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.
Publication 539 - Taxpayer Bonds
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 projects valued at $50,000 or more.
To qualify for an annual exemption you must meet all of the following criteri
You can email [email protected] or contact the city building authorities as they have access to the list of qualified contractors.
No. Annual Bond Exemption Certificates are no longer mailed out.
You can email [email protected] to determine if you did not qualify for the Annual Bond Exemption list and the reason(s) why.
All building authorities will have access to a list of qualified Annual Bond Exemption recipients.
Contractors that did not qualify for the Annual Bond Exemption would need to submit a one-time bond exemption request to [email protected].
This request must include:
No. The Annual Bond Exemption list is only run once a year.
The Annual Bond Exemption expires on July 31 of each calendar year.
The effective date of the Annual Bond Exemption is August 1 of each calendar year.
Yes. On August 1 when the list is run, if the contractor meets all the qualifying criteria, the contractor will be placed on the list.
For taxpayer bond information:
Call (602) 716-6056 or
Arizona Department of Revenue
Taxpayer Information & Assistance
1600 W Monroe Phoenix, AZ 85007
Email: [email protected]