AZ SB1064

Amends Arizona Revised Statutes Section 42-5075 to modify the prime contracting transaction privilege tax classification for design-build and similar construction services.

Exempts the actual direct costs of design phase services and professional services from the prime contracting tax when provided through construction-manager-at-risk, construction services, design-build construction services, and job-order-contracting construction services.

Defines "design phase services" to include activities such as site evaluation, design document preparation, cost estimation, and subcontractor selection that occur before or concurrent with construction work.

Clarifies that the exemption applies only to design and professional services incorporated into a contract executed before modification begins, and does not include construction phase services or administrative supervision during the construction execution.

Adds new definitions for construction-manager-at-risk, construction services, design-build, job-order-contracting, and professional services by cross-reference to Section 34-101.