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Arizona Taxpayer Bond for Contractors

How much will my contractor tax bond cost in Arizona?

The Arizona Registrar of Contractors requires contractors with transaction privilege tax licenses and contractors who have contracts for construction projects exceeding $50,000 to post an Arizona taxpayer bond for contractor. The bond amount varies depending on the type of work being performed by the contractor.

Type 1 bond amounts are for contractors of residential buildings that are not single family based. Type 2 bond amounts are for single family residential housing, water, sewer, pipeline, communication and power-line construction contractors. Type 3 bond amounts are for industrial contractors who engage in non-residential building and roadway and highway construction. Type 4 bond amounts are for non-residential heavy construction contractors. Type 5 bond amounts are for bridge, tunnel and elevated highway construction contractors.

Bond Type Bond Amount Cost*
$2,000 Taxpayer Bond for Contractors (Type 1) $2,000 Starts at $100 Apply Now
$7,000 Taxpayer Bond for Contractors (Type 2) $7,000 Starts at $100 Apply Now
$17,000 Taxpayer Bond for Contractors (Type 3) $17,000 Starts at $100 Apply Now
$22,000 Taxpayer Bond for Contractors (Type 4) $22,000 Starts at $200 Apply Now
$102,000 Taxpayer Bond for Contractors (Type 5) $102,000 Starts at $500 Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Why do I need this bond?

The Arizona taxpayer bond for contractor ensures that the principal (contractor) will pay all transaction privilege taxes, penalties, and other obligations. If the principal fails to make the appropriate payments, the surety will compensate the state for any financial losses. These bonds are not required of all contractors in the state. The state might require a contractor to post this bond if the department experienced collection problems while a new license applicant was engaged in business under a prior license or if a new license applicant had a previous license revoked.

Need a surety bond for a construction project?

Payment bonds and performance bonds are often required for specific construction projects. No matter the state, SuretyBonds.com can get you the bond you need for your next job.

What’s the fine print?

The contractor’s industry classification and transaction privilege tax license number is required on the bond form. Arizona contractor tax bonds are continuous until canceled, and the surety company must provide written notice of the bond’s cancellation to the Registrar at least 30 days in advance only after the two year term has passed.

Additional Resources

Arizona Department of Revenue Taxpayer Bonds

Arizona Department of Revenue Taxpayer Bond for Contractor form

Arizona Revised Statutes Title 42 - Taxation

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