Arizona Provides Exemption for Service Fees in Construction Contracts.

The Arizona Legislature has passed a bill exempting engineering and architectural services that are incorporated into a design-build construction contract. These services, charged for separately have always been exempt; however, they were taxable when included in a single contract. Now these services are exempt, even when incorporated into a prime contracting contract. This legislation retroactive to Oct 17, 1969. Refund claims must be submitted to the Department of Revenue by December 31, 2004. The aggregate total of a refund cannot exceed $100,000. (S.B. 1293 of 2004)

Posted on October 22, 2004