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Contractor’s Certificate Instructions
GENERAL INSTRUCTIONS
In order to ensure the effectiveness of the Certificate, all required Tangible personal property installed in existing
fields must be completed. property: Property installed into existing real property
that can still be identified after installation, that does not
A. The “NAME”, “ADDRESS”, and “TPT LICENSE NUMBER” lose its character and can be removed in essentially the
fields of the Contractor section must be completed. same form.
The contractor is the entity responsible for the tax.
Alteration: An activity or action that causes a direct
B. The “NAME”, “ADDRESS”, and “TPT LICENSE” fields of the physical change (e.g., adding or expanding square footage)
Subcontractor section must be complete. to existing property that cannot be classified as
maintenance, repair or replacement and that is under the
C. Either the “Single Project Certificate” box or the “Blanket following thresholds. For residential property (see
Certificate” box of the Type of Certificate section must be explanation below) the alteration amount is less than 25%
checked. of the property’s value as determined by the county
assessor. For commercial property (see explanation
If the “Single Project Certificate” box is checked, the
below), the alteration amount is for less than $750,000.
“PROJECT DESCRIPTION” must be supplied. The
If the above thresholds are exceeded, then the project is a
project description must be sufficient to identify the
modification project (see below).
location of the single project or the Certificate will be
deemed incomplete by the Department. Modification: Activities encompassing “ground up”
construction, grading and leveling ground, and wreckage
Additionally, if the “Single Project Certificate” box is
or demolition, or other new contracting activity where none
checked, a project designation description must be
previously existed to the extent such activity cannot
provided. See below for definitions.
otherwise be characterized as maintenance, repair,
If the “Blanket Certificate” box is checked, either the replacement or alteration (“MRRA”).
“From: Through:” box or the “Until revoked” box
Residential: Existing property classified as class
must be checked. If the “From: Through:” box is
two property and that is used for residential purposes
checked, the “From: Through:” dates must be
(see A.R.S. § 42-12002(1)(c)); class three property
provided. The “Specific Project Exclusion” box is optional
(see A.R.S. § 42-12003), or class four property
and allows the “Prime Contractor” to exclude specific
(see A.R.S. § 42-12004).
projects or time periods from the Blanket Certificate.
If the “Specific Project Exclusion” box is checked, details Commercial: All other existing property not classified as
including the project’s description and designation or the residential (classes one, five, six, seven, eight, and
excluded time periods must be provided. nine). See A.R.S. §§ 42-12001, 42-12005, 42-12006,
42-12007, 42-12008, and 42-12009.
The “SIGNATURE”, “TITLE”, “PRINT NAME” and
“DATE SIGNED” FIELDS of the Signature section
must be completed. RETROACTIVE EFFECT
If a Certificate is not signed contemporaneously with the
Failure to complete these fields as specified may result in
commencement of a contracting project intended to be within the
the Department disregarding the incomplete Certificate.
scope of the Certificate, the Department will accept the Certificate
as evidence of the alleged facts. However, the person receiving
MRRA AND MODIFICATION DEFINITIONS the Certificate may not receive the benefit of the Certificate if
Maintenance: The upkeep of property or equipment. the Department determines that any of the facts set forth in the
Certificate are inaccurate.
Repair: Returning existing property to a usable state from
a partial or total state of inoperability or non-functionality. ASSUMPTION OF PRIME CONTRACTING TPT
Replacement: Removal from service of existing property LIABILITY
of a: (i) component; or (ii) system; or (iii) type of tangible In most instances, the entity assuming the prime contracting
personal property, and replacement with another one that transaction privilege tax liability for the prime contracting
provides the: (i) same; or (ii) similar; or (iii) upgraded design project(s) referenced in the Certificate will legally be the prime
or functionality; regardless of whether the existing contractor for such project(s). However, in some instances
component or system or existing tangible personal such entity may not legally be the prime contractor for such
property is physically removed from the existing property. project(s). If an entity is not the prime contractor for such
project(s), the Certificate will nevertheless be effective and will
Component: One of the parts of a compound or subject such entity to the transaction privilege tax liability of the
complex whole; helping to make up the whole of entity receiving the Certificate.
something. A component may be part of a system.
System: A regularly interacting or interdependent
group of items (or components) forming a unified whole.
ADOR 10313 (4/20) This Form Superseded All Other Form 5005’s
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