ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: MAPS DP 7-0-0-0 | 3^rd Read 28-1-1-0

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SB 1335: deputy constable appointments; website notification

S/E: TPT; prime contracting; senior housing

Sponsor: Senator Shamp, LD 29

Committee on Appropriations

Summary of the Strike-Everything Amendment to SB 1335

Overview

Retroactive to January 1, 2023, expands the types of nonprofits that are eligible for the senior nonprofit housing deductions from the prime contracting transaction privilege tax (TPT).

History

Arizona levies TPT on various classifications of business activity. The tax base for prime contracting classification of TPT is 65% of the gross proceeds or gross income derived from prime contracting business, with certain amounts deducted before computing the tax base.

One of these deductions from the prime contracting TPT base is for contracts for the construction of a residential apartment housing facility that qualifies for a federal housing subsidy for low-income individuals over the age of 62, if the facility is owned by a 501(c)(3) nonprofit (A.R.S. § 42-5075).

Provisions

1. Allows the senior nonprofit housing deduction from the prime contracting classification of TPT to include:

a) Wholly owned subsidiaries of a 501(c)(3) corporation;

b) 501(c)(4) corporations or wholly owned subsidiaries of a 501(c)(4) corporation; and

c) Limited partnerships or limited liability companies in which the general partner or managing member is an eligible nonprofit corporation or single purpose entity that is wholly owned by one or mor eligible nonprofit corporations. (Sec. 1)

2. Defines federal housing subsidy. (Sec. 1)

3. Applies retroactively beginning in Tax Year 2023. (Sec. 2)

4. Makes technical changes. (Sec. 1)

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8.                   SB 1335

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