2023 Annual AZ Construction Sales Tax Seminar

10/26/2023

On Thursday, October 26, Lewis Roca will host the Annual Construction Sales Tax Seminar. This year we will again provide the option for you to attend in-person or virtually so you can choose what works best for you. The seminar will provide you with up-to-date information on the industry. We hope you can join us.

Date: Thursday, October 26, 2023
Time: 9:00 am - 2:30 pm MST

Location: Virtual
Cost: $25 for the first registrant, free for additional registrants from your company.
Attend all the sessions or just the one that you want!

Location: In-Person
201 E Washington St., 2nd Floor Conference Room, Phoenix, AZ 85004
Cost: $50 for the first registrant, $25 for additional registrants for your company. Continental breakfast and lunch will be provided.

Agenda:

9:00 – 9:05 a.m. (5 minutes)
Welcome – Pat Derdenger
9:05 – 10:05 a.m. (60 minutes)
Overview of Arizona’s Unique Contracting Tax Structure – Pat Derdenger
10:05 – 10:50 a.m. (45 minutes)
Anything New on the MRRA Front – Karen Lowell
10:50 – 11:00 a.m. (10 minutes)
Break
11:00 – 11:45 a.m. (45 minutes)
Arizona's Secret Land Transfer Tax: The Spec Builder Tax – Pat Derdenger and Karen Lowell
11:45 a.m.– 12:35 p.m. (50 minutes)
Lunch Break
12:35 p.m. – 1:20 p.m. (45 minutes)
Pat’s and Karen’s Views – PART 1

A. Pinal Regional Transportation Authority Tax: What’s up with refunds of the half cent found to be illegal by the Supreme Court in 2022 (the Vangilder case) and why haven’t refunds been processed? Contractors that paid the tax on construction work in Pinal County are eligible for a refund, just like Pinal County retailers.
B. The Department’s Proposed Procedure for Contractors To Get a Credit for Sales Tax Paid to Vendors when a MRRA Job Turns into a Taxable Contracting (Modification) Job
C. How Does an MRRA Subcontractor Know Whether to Pay the Sales Tax on Materials or Not? Possible New Certificate Being Developed by DOR…
D. Leases and the Speculative Builder Tax:

- Does the sale of land subject to a ground lease where the lessee constructed and owns the Improvements trigger the tax?
- Is the tax imposed on initially entering into a long term lease with a tenant (that requires the lessor to construct the Improvements) or the subsequent sale of the completed Improvements and land to a third party investor?
- And how do you determine the sales price when a long term lease triggers the tax?

1:20 – 1:30 p.m. (10 minutes)
Break
1:30 – 2:00 p.m. (30 minutes)
Pat’s and Karen’s Views – PART 2:

A. Is Rock Excavation and Crushing (with the Crushed Rock Used in a Construction Project) Mining or Contracting, and Does It Matter?
B. Can The Department Go Back and Deny Deductions It Previously Allowed to Offset the Protested Tax Amounts after a Taxpayer Protests a TPT Assessment?
C. The Latest on the MRRA ‘Road Building’ Exclusion – Does it Extend to Road-Adjacent Improvements like Rest Stops?

2:00 – 2:30 p.m. (30 min)
Q/A: Ask the Tax Pros, Ask Them Anything – Pat Derdenger and Karen Lowell

2023 Annual AZ Construction Sales Tax Seminar

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