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Contractor’s Certificate Instructions
GENERAL INSTRUCTIONS
Component: One of the parts of a compound or
In order to ensure the effectiveness of the Certificate, all required complex whole; helping to make up the whole of
fields must be completed. something. A component may be part of a system.
A. The “NAME”, “ADDRESS”, and “TPT LICENSE NUMBER” System: A regularly interacting or interdependent
fields of the Contractor section must be completed. group of items (or components) forming a unified whole.
The contractor is the entity responsible for the tax.
Tangible personal property installed in existing
A contractor who is Native American, working on the property: Property installed into existing real property
reservation established for their tribe will mark the box that can still be identified after installation, that does not
indicating this. lose its character and can be removed in essentially the
same form.
A contractor working for the Native American or the Tribe
on the reservation established for the Tribe will mark the box Alteration: An activity or action that causes a direct
indicating this. The name of the Tribe must also be included. physical change (e.g., adding or expanding square footage)
to existing property that cannot be classified as
B. The “NAME”, “ADDRESS”, and “TPT LICENSE” fields of the maintenance, repair or replacement and that is under the
Subcontractor section must be complete. following thresholds. For residential property (see
explanation below) the alteration amount is less than 25%
C. Either the “Single Project Certificate” box or the “Blanket of the property’s value as determined by the county
Certificate” box of the Type of Certificate section must be assessor. For commercial property (see explanation
checked. below), the alteration amount is for less than $750,000.
If the “Single Project Certificate” box is checked, the If the above thresholds are exceeded, then the project is a
“PROJECT DESCRIPTION” must be supplied. The modification project (see below).
project description must be sufficient to identify the Modification: Activities encompassing “ground up”
location of the single project or the Certificate will be construction, grading and leveling ground, and wreckage
deemed incomplete by the Department. or demolition, or other new contracting activity where none
Additionally, if the “Single Project Certificate” box is previously existed to the extent such activity cannot
checked, a project designation description must be otherwise be characterized as maintenance, repair,
provided. See below for definitions. replacement or alteration (“MRRA”).
If the “Blanket Certificate” box is checked, either the Residential: Existing property classified as class
“From: Through:” box or the “Until revoked” box two property and that is used for residential purposes
must be checked. If the “From: Through:” box is (see A.R.S. § 42-12002(1)(c)); class three property
checked, the “From: Through:” dates must be (see A.R.S. § 42-12003), or class four property
provided. The “Specific Project Exclusion” box is optional (see A.R.S. § 42-12004).
and allows the “Prime Contractor” to exclude specific Commercial: All other existing property not classified as
projects or time periods from the Blanket Certificate. residential (classes one, five, six, seven, eight, and
If the “Specific Project Exclusion” box is checked, details nine). See A.R.S. §§ 42-12001, 42-12005, 42-12006,
including the project’s description and designation or the 42-12007, 42-12008, and 42-12009.
excluded time periods must be provided.
The “SIGNATURE”, “TITLE”, “PRINT NAME” and RETROACTIVE EFFECT
“DATE SIGNED” FIELDS of the Signature section If a Certificate is not signed contemporaneously with the
must be completed. commencement of a contracting project intended to be within the
Failure to complete these fields as specified may result in scope of the Certificate, the Department will accept the Certificate
the Department disregarding the incomplete Certificate. as evidence of the alleged facts. However, the person receiving
the Certificate may not receive the benefit of the Certificate if
the Department determines that any of the facts set forth in the
MRRA AND MODIFICATION DEFINITIONS Certificate are inaccurate.
Maintenance: The upkeep of property or equipment. ASSUMPTION OF TPT LIABILITY
Repair: Returning existing property to a usable state from In most instances, the entity assuming the transaction
a partial or total state of inoperability or non-functionality. privilege tax liability for the contracting project(s) referenced
in the Certificate will legally be the prime contractor
Replacement: Removal from service of existing property for such project(s). However, in some instances such
of a: (i) component; or (ii) system; or (iii) type of tangible entity may not legally be the prime contractor for such
personal property, and replacement with another one that project(s). If an entity is not the prime contractor for such
provides the: (i) same; or (ii) similar; or (iii) upgraded design project(s), the Certificate will nevertheless be effective and will
or functionality; regardless of whether the existing subject such entity to the transaction privilege tax liability of the
component or system or existing tangible personal entity receiving the Certificate.
property is physically removed from the existing property.
ADOR 10313 (5/21) This Form Superseded All Other Form 5005’s
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