ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2734: Prime contracting; study committee |
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PRIME SPONSOR: Representative Cobb, LD 5 |
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Establishes the Taxation of Prime Contracting
Study Committee (Committee).
History
Interim committees operate between legislative sessions and undertake studies and investigate issues about which the Legislature desires further information (azleg.gov). Prime contractors must obtain transaction privilege tax (TPT) licenses and are subject to TPT under the prime contracting classification. TPT is a tax on a vendor for the privilege of doing business in the state. Various business activities are subject to transaction privilege tax and must be licensed (A.R.S. §42 Chapter 5). Prime contractors perform, coordinate or supervise modification work, including contracting with any subcontractors (A.R.S. §42-5075).
Provisions
1. Establishes the Committee consisting of the following members:
Voting Members
a. Three members of the Senate who are appointed by the President of the Senate, not more than two of whom are members of the same political party. The President of the Senate will designate one of these members as co-chairperson of the Committee.
b. Three members of the House of Representatives who are appointed by the Speaker of the House of Representatives, not more than two of whom are members of the same political party. The Speaker of the House of Representatives will designate one of these members as co-chairperson of the Committee.
Advisory Members
c. Two persons who are actively engaged in the business of prime contracting appointed by the President of the Senate.
d. One person who represents an association of counties in this state appointed by the President of the Senate.
e. One person who represents a city or town in this state with a population of more than 500,000 people and who has experience in the administration of TPT appointed by the Speaker of House of Representatives.
f. One person who represents a city or town in this state with a population of 500,000 people or less who has experience in the administration of TPT appointed by the Speaker of House of Representatives.
g. One person who is considered an expert in the field of TPT appointed by the Speaker of the House of Representatives.
h. One person who represents a statewide taxpayer association appointed by the Speaker of the House of Representatives.
i. The director of the Department of Revenue (DOR) or the director's designee. (Sec. 1)
2. Mandates the Committee to:
a. Analyze the legal framework surrounding the taxation of prime contracting.
b. Study the best practices of other states and policy experts on the taxation of prime contracting.
c. Study compliance elements, including ways to decrease noncompliance with the taxation of prime contacting. (Sec. 1)
3. Allows the Committee to:
a. Request information, data and reports from the DOR.
b. Hold hearings and receive public testimony. (Sec. 1)
4. Permits the study Committee to convene at any time and in any place deemed necessary or convenient by the co-chairpersons and all meetings shall be open to the public. (Sec. 1)
5. Specifies that the Committee members are not eligible to receive compensation. (Sec. 1)
6. Clarifies that only the Committee members who are members of the Legislature are voting members and counted to constitute a quorum; all other members are nonvoting advisory members. (Sec. 1)
7. Requires the Committee to submit a report on its findings and recommendations to the Governor, The President of the Senate and the Speaker of the House of Representatives on or before November 15, 2019. (Sec. 1)
8. Contains a repeal date of September 30, 2020. (Sec. 1)
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12. Fifty-fourth Legislature HB 2734
13. First Regular Session Version 4: House Engrossed
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