Arizona Taxpayer Bonds for Contractors
Arizona Contractor License Center specializes in providing taxpayer bond assistance for Arizona contractors. Our bonding specialists help guide you through the bond process, assist with bond applications, and help with filing so you can secure the required bond coverage as efficiently as possible.
Arizona Taxpayer Bond
A taxpayer bond may be required for certain Arizona contractors and transaction privilege tax applicants. These bonds should not be confused with performance bonds, bid bonds, payment bonds, or contractor license bonds.
Who May Have to Post a Taxpayer Bond?
- Certain transaction privilege tax license applicants who will engage in contracting.
- Certain prime contractors who have construction contracts valued at $50,000 or more.
- Persons who are delinquent in paying Arizona taxes or have a history of delinquency.
What Amount of Bond Must a New Applicant Post?
The primary type of contracting being performed determines the taxpayer bond amount.
| Required Bond Amount | Type of Contracting Being Performed |
|---|---|
| $2,000 | General contractors of residential buildings, other than single family housing; operative builders; plumbing, air conditioning and heating; painting, paper hanging, decorating; electrical work; masonry stonework and other stonework; plastering; drywall; acoustical and insulation work; terrazzo, tile, marble and mosaic work; carpentry; floor laying and other floor work; roofing and sheet metal work; concrete work; water well drilling; structural steel erection; glass and glazing work; excavating and foundation work; wrecking and demolition work; installation and erection of building equipment; special trade contractors; and manufacturers of mobile homes. |
| $7,000 | General contractors of single family housing, water, sewer, pipeline, communication, and power-line construction. |
| $17,000 | General contractors of industrial buildings and warehouses, non-residential buildings, and highway and street construction except elevated highways. |
| $22,000 | Heavy construction not elsewhere classified, such as dams, golf courses, and land drainage. |
| $102,000 | Bridge, tunnel, and elevated highway construction. |
How Long Must a New Applicant Maintain a Taxpayer Bond?
An applicant in the contracting business must maintain a bond for a minimum of 2 years. The department will not require the applicant to obtain a new bond if the taxpayer timely pays all taxes due during that 2-year period. If the taxpayer deposited cash, a certificate of deposit, or a U.S. Treasury bond with the department, the taxpayer must submit a written request for the bond to be released.
More information: Arizona Department of Revenue Publication 539
Need Help With an Arizona Taxpayer Bond?
Our bonding team can help you review the taxpayer bond requirement, complete the bond process, and move forward with your Arizona contractor business.
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