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Why is an Arizona Taxpayer Bond for Contractors Required?
Contractors in Arizona are required to furnish a Taxpayer Bond to the state to guarantee compliance with the provisions of Arizona Revised Statutes Title 42, including payment of all transaction privilege taxes, penalties, and other obligations incurred by the bonded principal. The surety bond amount or coverage required ranges from $2,000 to $102,000 and is based on the primary type of contracting being performed.
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Arizona Department of Revenue Taxpayer Bond Information
As specified by the Arizona Department of Revenue, surety bond amounts for the type of contracting being performed are as follows:
$2,000 for 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 manufactures of mobile homes.
$7,000 for General contractors of single family housing, water, sewer, pipeline, communication and power-line construction.
$17,000 for General contractors of industrial building and warehouses; of non-residential buildings; and highways and street construction except elevated highways.
$22,000 for Heavy construction not elsewhere classified (e.g. dams, golf courses, land drainage, etc.).
$102,000 for Bridge, tunnel and elevated highway construction.