Fifth Annual Construction Tax Issues Seminar

Contractors, Homebuilders, and Developers are welcome to attend Steptoe’s Fifth Annual Construction Industry Tax Issues Seminar to 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 developers and homebuilders.

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 tax treatment of highway construction barricades (taxable as a rental or exempt sub-contracting), the taxability or not of "pre-construction" services, officers’ and shareholders’ personal liability for sales taxes owed by the contracting business, an update on the tax treatment of construction managers, the city speculative builder tax (Arizona’s hidden real property transfer tax) — including the exclusion of the value of leases assigned with the sale of the project and successor liability for buyers, an update on 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
• Ben Cooper
• Randy Evans
• Frank Crociata
• Benjamin Gardner

COST:

• $100.00 for registered participants on or before April 30, 2008
• $120.00 for registered participants after May 1, 2008

Please click here  for additional information.

AGENDA:

8:00 a.m. – 8:30 a.m.
Registration and Continental Breakfast

8:30 a.m. – 10:30 a.m.

•  General Overview of Arizona ’s Construction Sales Tax Structure (Pat Derdenger)
• City Sales Taxation of Contracting: Major Differences from the State Structure (Dawn Gabel)
• Overview of Southwestern States’ Construction Sales Tax Structure: CA, NV, UT, CO, & NM (Randal Evans)
• Ormond Builders Decision and Pending Legislation on the Tax Status of Construction Managers (Ben Cooper)
• Highway Construction Barricades—Taxable as Rentals or Exempt as Subcontracting (Randal Evans)
• The City Speculative Builder Tax—A Hidden “Land Transfer Tax” (Pat Derdenger)
• Is the Value of Leases Assigned in Connection with the Sale of a Shopping Center, Office Complex or other Rental Property Subject to the Speculative Builder Tax? (Frank Crociata)
• Are Buyers Subject to the Speculative Builder Tax if Not Paid by the Seller?—Successor Liability (Dawn Gabel)

10:30 a.m. – 10:45 a.m.

Mid-Session Break

10:45 a.m. – 12:45 p.m.

•  Update on the Deduction for Water Pipes 4” in Diameter and Larger (Pat Derdenger)
• Property Tax Issues for Homebuilders & Developers (Dawn Gabel)
• Contracting for the Federal Government & on Indian Land (Frank Crociata) 
• Update on the Marketing Arm–Contracting Arm Structure for Homebuilders (Pat Derdenger) 
• Homebuilders’ Land Deduction (Randal Evans) 
• Preconstruction Services—Are they Taxable? (Frank Crociata) 
• Action Marine Case—Are Officers & Shareholders Personally Liable for the Business’ Sales Tax? (Benjamin Gardner) 
• Green Tax Benefits for Homebuilders and Developers (Frank Crociata)

12:45 p.m. – 2:00 p.m.

Luncheon/Question & Answer Session