House of Representatives

HB 2622

sales tax; contractor's solar exemption

Sponsors: Graf, Anderson, Carruthers, et al

DP	Committee on Energy Utilities and Technology
X	Committee on Ways and Means
	Caucus and COW
	As Passed the House

Clarifies the current Transaction Privilege Tax (TPT) exemption for the installation of solar devices by contractors.

History

In 1991, the Arizona Legislature enacted two transaction privilege tax exemptions applicable to solar energy devices; one was for sales of such devices under the retail classification and the other was for the contractor's cost of the device installed under the prime contracting classification. At the time the exemptions were added, both exemptions were set to expire on December 31, 1996. However, the exemption under the retail classification was later amended to delete the expiration clause. Last year’s HB 2287 (Laws 2000 Chapter 214) reinserted the exemption for prime contractors and made the exemption applicable retroactively to January 1, 1997 with a sunset date of January 1, 2011. HB 2622 amends the existing prime contracting exemption for solar energy devices to clarify that both the sale and installation of the solar energy device, limited to a $5,000 deduction per contract, is exempt from the transaction privilege tax under the prime contracting classification.

Provisions

· Clarifies the a transaction privilege tax (TPT) exemption for the gross proceeds or gross income derived from a contract to provide and install a solar device.

· Makes technical and conforming changes.

· Contains blending language from legislative council that resulted from the passage of Prop. 302 in November, 2000 election.

HB 2622 passed the Committee on Energy Utilities and Technology unamended.

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45th Legislature

First Regular Session 2 March 5, 2001

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