Expiration of Annual Bond Exemption - July 31

The Arizona Department of Revenue (ADOR) reminds construction contractors that the Annual Bond Exemption program will run from July 1 though July 31. ADOR does not issue paper Annual Bond Exemption Certificates to in-state contractors in good standing. Instead, the Department makes the new electronic listing of qualified exempt contractors available to each city and town on August 1.

An Annual Bond Exemption provides documentation for city building authorities that contractors have met the bonding requirements under A.R.S. 42-5007 for modification projects valued at $50,000 or more. The qualifications for the Annual Bond Exemption List are the following:

• The start date of the transaction privilege license must be at least one year before the current date.
• A contractor cannot have more than two delinquencies in the past 12 consecutive months.
• Cannot have more than $500 in tax liabilities currently due.
• Must have a physical location in Arizona.
• A minimum of $10 was paid in tax liability for the past 12 consecutive months.

Contractors can verify whether they have met all five requirements by visiting AZTaxes.gov or by reviewing their records. To avoid being disqualified from the Annual Bond Exemption List, it is highly recommended that they file and pay their June period at the same time by 5 p.m. on July 30.

For questions regarding Annual Bond Exemptions Certificates, please refer to Bond for Contractors.