Arizona Tax Update

There are two recent developments in the area of the Arizona sales taxation of contracting that we bring to your attention in this newsletter. The first is the legislation that clarifies that a developer that owns land and hires one or more contractors to improve that land (e.g. homes or condos) will not be taxable on the sale of improved real property even if it is "presold." The second is the Ormond Builders Court of Appeals case which held that a construction manager acting as the owner’s representative will not be taxable on payments made to the various trade contractors on the job.

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