Unpaid Taxes a Reduced Threat to Contractor's
Under a law that went into effect July 22, the ROC
is no longer required to investigate a licensee's tax obligations.
Thanks to a new law passed during the recently completed
legislative session, the Arizona Registrar of Contractors (ROC) will no longer
be required to investigate whether contractors and/or their officers are current
with their tax obligations. Also, the ROC can no longer suspend or revoke, on
its own initiative, a contractor's license for failure to pay income taxes,
withholding taxes or transaction privilege (sales) taxes.
Senate Bill 1170
provides for tax-related license suspension or revocation by the ROC only when
the Arizona Department of Revenue notifies the ROC that "a tax debt ... incurred
in the operation of the licensed business has become final" and the taxpayer
neglects or refuses to pay.
The new law removes the ROC's discretion to withhold
issuing a license or in suspending or revoking a contractor's license due to
issues relating to the payment of taxes. Many believed that the complexities of
city, state and federal taxes are outside the expertise of the ROC.
S1160 was sponsored by Senators Gail Griffin, David
Farnsworth, David Gowan, Darin Mitchell and David Stevens. It was signed into
law by Gov. Brewer on April 23 and went into effect July 22.