Arizona Contractor's Exemption Certificate (TPT)

Contractor's Exemption Certificate (TPT)
Contractor's Certificate
Arizona Department of Revenue
Arizona Form
Contractor’s Certificate

5005

Prime Contracting and MRRA

The purpose of this Certificate is to provide a subcontractor with the validation required for prime contracting transaction privilege tax (TPT)
exemption, and for exemption from liability for an amount equal to retail TPT on materials incorporated or fabricated into maintenance, repair,
replacement or alteration (MRRA) projects. The Certificate can be provided for a particular project, for a period of time, or until revoked. This
Certificate establishes liability of the contractor issuing it for the prime contracting TPT and/or the amount equal to the retail TPT; therefore,
it must be completed by the contractor assuming the liability. The asterisked (*) items must be completed; otherwise, the Certificate is not
valid. The Department may disregard this Certificate pursuant to A.R.S. § 42-5008.01 or A.R.S. § 42-5075.E if the Certificate is incomplete
or erroneous. If disregarded, the subcontractor accepting the Certificate will have the burden of proving (pursuant to A.R.S. § 42-5008.01 or
A.R.S. § 42-5075.D), that it is not liable for the prime contracting TPT and/or the amount equal to the retail TPT.

Prime contractor should provide this Certificate to the subcontractor(s) and retain a copy for their records.

A. Contractor





* Name

*

* Address

City, Town or Post Office

AZ Contractor License Number

Phone Number

TPT License

Tribal Business License
State



Tribal Number

ZIP Code

 I am a Native American Contractor working on the reservation established for my tribe. (Provide your Tribal Business License or Tribal Number above.)
I am performing contracting work for a  Native American member or  the Tribe for which the reservation is established named below.
Name of Tribe

B. Subcontractor
* Name

* TPT License # (if none, write “N/A - MRRA only”)

* Address

City, Town or Post Office

AZ Contractor License Number

Phone Number

State

ZIP Code

C*. Type of Certificate (check one and provide requested information)

 Single Project Certificate
*PROJECT DESCRIPTION
* (For example; Building Permit #, Address, Subdivision,

 Blanket Certificate (check applicable box and fill in requested
information).*

OR

 Period From:	
 Until revoked

Book/Map/Parcel #s, and/or Legal Description)

	 Through:	

* NOTE: Blanket Certificate indicates the prime contractor is responsible
for every contract during the period regardless of contract designation.

 Specific Project Exclusion:

Project Designation (see instructions for definitions)

 MRRA
 Modification

 Description: 	
Designation:  MRRA  Modification

I hereby certify that I am the contractor issuing this form or I have authority to sign this Certificate on behalf of Contractor. I understand
that by executing this Certificate, Contractor is licensed for TPT purposes and is assuming the prime contracting TPT liability
and/or the amount equal to retail TPT liability applicable to the above referenced project(s).

	
	
SIGNATURE		

	
PRINT NAME

	
	
	
TITLE		
DATE SIGNED

ADOR 10313 (5/21) 	 This Form Superseded All Other Form 5005’s

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Contractor’s Certificate Instructions
	 GENERAL INSTRUCTIONS
In order to ensure the effectiveness of the Certificate, all required
fields must be completed.

		
Component: One of the parts of a compound or
		complex whole; helping to make up the whole of
		 something. A component may be part of a system.

A.	 The “NAME”, “ADDRESS”, and “TPT LICENSE NUMBER”
	 fields of the Contractor section must be completed.
	 The contractor is the entity responsible for the tax.

		
System:
A regularly interacting or interdependent
		 group of items (or components) forming a unified whole.

	
	
	

A contractor who is Native American, working on the
reservation established for their tribe will mark the box
indicating this.

	
	
	

A contractor working for the Native American or the Tribe
on the reservation established for the Tribe will mark the box
indicating this. The name of the Tribe must also be included.

B.	 The “NAME”, “ADDRESS”, and “TPT LICENSE” fields of the
	 Subcontractor section must be complete.
C.	 Either the “Single Project Certificate” box or the “Blanket
	 Certificate” box of the Type of Certificate section must be
	checked.
	 	If the “Single Project Certificate” box is checked, the
		 “PROJECT DESCRIPTION” must be supplied. The
		 project description must be sufficient to identify the
		 location of the single project or the Certificate will be
		 deemed incomplete by the Department.
	 	Additionally, if the “Single Project Certificate” box is
		 checked, a project designation description must be
		 provided. See below for definitions.
	 	If the “Blanket Certificate” box is checked, either the
		“From: Through:” box or the “Until revoked” box
		 must be checked. If the “From: Through:” box is
		checked, the “From: Through:” dates must be
		 provided. The “Specific Project Exclusion” box is optional
		 and allows the “Prime Contractor” to exclude specific
		 projects or time periods from the Blanket Certificate.
		 If the “Specific Project Exclusion” box is checked, details
		 including the project’s description and designation or the
		 excluded time periods must be provided.
	 	
The “SIGNATURE”, “TITLE”, “PRINT NAME” and
		“DATE SIGNED” FIELDS of the Signature section
		 must be completed.
Failure to complete these fields as specified may result in
the Department disregarding the incomplete Certificate.

	 MRRA AND MODIFICATION DEFINITIONS
	

Maintenance: The upkeep of property or equipment.

	
	

Repair: Returning existing property to a usable state from
a partial or total state of inoperability or non-functionality.

	
	
	
	
	
	
	

Replacement: Removal from service of existing property
of a: (i) component; or (ii) system; or (iii) type of tangible
personal property, and replacement with another one that
provides the: (i) same; or (ii) similar; or (iii) upgraded design
or functionality; regardless of whether the existing
component or system or existing tangible personal
property is physically removed from the existing property.

ADOR 10313 (5/21) 	 This Form Superseded All Other Form 5005’s

		
Tangible personal property installed in existing
		
property: Property installed into existing real property
		 that can still be identified after installation, that does not
		 lose its character and can be removed in essentially the
		 same form.
	
	
	
	
	
	
	
	
	
	
	

Alteration: An activity or action that causes a direct
physical change (e.g., adding or expanding square footage)
to existing property that cannot be classified as
maintenance, repair or replacement and that is under the
following thresholds. For residential property (see
explanation below) the alteration amount is less than 25%
of the property’s value as determined by the county
assessor. For commercial property (see explanation
below), the alteration amount is for less than $750,000.
If the above thresholds are exceeded, then the project is a
modification project (see below).

	
	
	
	
	
	

Modification:
Activities encompassing “ground up”
construction, grading and leveling ground, and wreckage
or demolition, or other new contracting activity where none
previously existed to the extent such activity cannot
otherwise be characterized as maintenance, repair,
replacement or alteration (“MRRA”).

	
	
	
	
	

Residential:
Existing property classified as class
two property and that is used for residential purposes
(see A.R.S. § 42-12002(1)(c)); class three property
(see A.R.S. § 42-12003), or class four property
(see A.R.S. § 42-12004).

	
	
	
	

Commercial: All other existing property not classified as
residential (classes one, five, six, seven, eight, and
nine). See A.R.S. §§ 42-12001, 42-12005, 42-12006,
42-12007, 42-12008, and 42-12009.

	 RETROACTIVE EFFECT
If a Certificate is not signed contemporaneously with the
commencement of a contracting project intended to be within the
scope of the Certificate, the Department will accept the Certificate
as evidence of the alleged facts. However, the person receiving
the Certificate may not receive the benefit of the Certificate if
the Department determines that any of the facts set forth in the
Certificate are inaccurate.

	 ASSUMPTION OF TPT LIABILITY
In most instances, the entity assuming the transaction
privilege tax liability for the contracting project(s) referenced
in the Certificate will legally be the prime contractor
for such project(s).
However, in some instances such
entity may not legally be the prime contractor for such
project(s). If an entity is not the prime contractor for such
project(s), the Certificate will nevertheless be effective and will
subject such entity to the transaction privilege tax liability of the
entity receiving the Certificate.