Form 5005 PDF Details

Understanding the intricacies of the Arizona Department of Revenue's Form 5005 is pivotal for contractors and subcontractors working within the realms of prime contracting and Maintenance, Repair, Replacement, or Alteration (MRRA) projects. This certificate plays a crucial role in ensuring tax compliance and liability clarity in construction and modification endeavors. Designed to provide subcontractors with the necessary validation for exemption from the prime contracting Transaction Privilege Tax (TPT) and the retail TPT on materials integrated into MRRA projects, Form 5005 underscores the distribution of tax liability. It clearly delineates the responsibilities of the prime contractor by requiring comprehensive completion - including contractor and subcontractor information, project specifics, and adherence to project or period designation. A failure to meticulously fill out the form as required not only invalidates the certificate but also shifts the burden of proof regarding tax liability onto the subcontractor, under specific Arizona statutes. It’s essential for prime contractors to understand that this form must be accurately completed and retained, thereby ensuring they assume the prime contracting TPT liability. This safeguard measure is further bolstered by the stipulation that incomplete or erroneous certificates can be disregarded by the Department, reflecting the form’s substantial role in Arizona's construction and contracting tax landscape.

QuestionAnswer
Form NameForm 5005
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namescertificate contractor, form 5005 az, az5005, arizona form 5005 fillable

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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

 

* TPT License #

 

 

 

 

 

 

 

* Address

City, Town or Post Office

State

ZIP Code

 

 

 

 

AZ Contractor License Number

Phone Number

 

 

 

 

 

 

 

B. Subcontractor

* Name

 

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

 

 

 

 

 

* Address

City, Town or Post Office

State

ZIP Code

 

 

 

 

AZ Contractor License Number

Phone Number

 

 

 

 

 

 

 

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

Single Project Certificate

*PROJECT DESCRIPTION

* (For example; Building Permit #, Address, Subdivision, Book/Map/Parcel #s, and/or Legal Description)

Project Designation (see instructions for definitions)

MRRA

Modification

OR

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

Period From: Through:

Until revoked

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

Specific Project Exclusion:

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 (4/20)

This Form Superseded All Other Form 5005’s

Contractor’s Certificate Instructions

GENERAL INSTRUCTIONS

In order to ensure the effectiveness of the Certificate, all required fields must be completed.

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.

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.

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.

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

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 PRIME CONTRACTING TPT LIABILITY

In most instances, the entity assuming the prime contracting transaction privilege tax liability for the prime 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.

ADOR 10313 (4/20) This Form Superseded All Other Form 5005’s

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