Fourth Annual Construction Industry Tax Issues Seminar

For Contractors, Homebuilders and Developers, Attend Steptoe’s Fourth Annual Construction Industry Tax Issues Seminar and get up-to-date information on the latest developments in Arizona’s sales taxation of contracting as well as Arizona’s property tax treatment of land owned by developers and homebuilders. On the federal income tax side, you will learn how a general contractor can be held liable for its subcontractor’s employment tax obligations (a scary scenario) and when the sale of land will give rise to capital gains and when it will not (the difference between being an investor and a dealer).

While most states make it easy and impose the sales tax on the sale of building materials to contractors, Arizona makes it difficult and exempts the sale of building materials but taxes the prime contractor’s gross receipts for the construction activity, while exempting subcontractors. And to complicate matters further, the cities’ contracting regime is not uniform with the state’s. This presentation will start with an informative overview of Arizona’s contracting sales tax structure and will then focus on many cutting edge issues, such as the difference between renting equipment and acting as a contractor, an update on the tax treatment of construction managers, the city speculative builder tax (Arizona’s hidden real property transfer tax), the tax treatment of off-site contractors in the context of the marketing arm, contracting arm homebuilder structure, current audit issues with the marketing arm, contracting arm dual structure, and many more.

Then join us for a dynamic and informative question and answer period during the lunch hour. Our speakers will be available to respond to your specific construction industry tax questions in an open forum discussion. Attendees will leave this seminar with a better understanding of the sales tax issues facing the construction industry.

The following Steptoe attorneys will speak:

• Pat Derdenger
• Dawn Gabel
• Bennett Cooper
• Randy Evans
• Mark Vilaboy
• Frank Crociata
  

Agenda:

8:00 a.m.     Registration and Continental Breakfast

8:30 a.m.     Overview of Arizona’s Construction Sales Tax Structure

8:55 a.m.     City Sales Taxation of Contracting: Major Differences from the State Structure

9:05 a.m.     Rental vs. Contracting – The Temp Power Case

9:20 a.m.     Update on The Marketing Arm-Contracting Arm Structur for Homebuilders – What’s the                     Impact of Private Letter Ruling LR 05-007?

9:40 a.m.     Homebuilders’ Land Deduction

9:50 a.m.     Taxation of Off-Site Contractors in the Marketing Arm Contracting Arm Context:                              Private Letter Ruling LR 06-003

10:00 a.m.   Ormond Builders: A Case Study of a Construction Manager  - Taxable or Not?

10:20 a.m.   City Speculative Builder Tax: Arizona’s Hidden Land Transfer Tax

10:40 a.m.    Managing State & City Exemption Certificates

10:50 a.m.    Break

11:05 a.m.    Recent Developments in Taxation of Design & Engineering Fees – The Department’s                       Final Ruling, Transaction Privilege Ruling TPR 06-2

11:15 a.m.    When a General Contractor Can Be Held Liable for its Subs’ Employment Taxes

11:25 a.m.    Hot Property Tax Issues for Homebuilders & Developers

11:45 a.m.    The Pitfalls in Claiming the Deduction or Filing a Refund Claim for Water Pipes 4" in                          Diameter and Larger

12:00 p.m.    Contracting for the Federal Government & On Indian Land

12:15 p.m.    When Does the Sale of Land Qualify for Capital Gain Treatment Versus Ordinary                              Income: The Difference Between an Investor and a Dealer?

12:25 p.m.    The Department of Revenue’s Implementation of the New Managed Audit Program

12:35 p.m.    Administrative Protests & Judicial Appeals

12:50 p.m.    Luncheon/Question & Answer Session

Please click here for more information.
 

COST:

• $80.00 for registered participants on or before May 31, 2007
• $100.00 for registered participants after May 31, 2007