House of Representatives

HB 2243

contract auditors; contingent fees; prohibition

Sponsor: Representative May

X	Committee on Ways and Means
	Caucus and COW
	Third Read
	As Passed the House

HB 2243 prohibits the state or cities from hiring contract auditors on a contingency fee basis.

History

According to the League of Arizona Cities and Towns, there are no cities or towns currently using contract auditors on a contingency fee basis. The Arizona Department of Revenue (DOR) also does not use contract auditors on a contingency fee basis to collect income and use taxes. However, DOR does hire contract auditors on a contingency fee basis for unclaimed property. According to DOR, the use of contract auditors for unclaimed property is a general practice among states.

Provisions

· Prohibits DOR from hiring contract auditors on a contingency fee basis.

· Prohibits cities and towns from hiring contract auditors on a contingency fee basis to collect transaction privilege (sales) taxes and use taxes.

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· 45th Legislature

· Second Regular Session 2 January 18, 2002

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