AZ HB2267

Repeals sections 42-5007 and 42-5008.01 Arizona Revised Statutes and reclassifies the "prime contracting" classification as the "manufactured building dealer" classification, renaming business activities related to construction contracting.

Modifies transaction privilege tax rates and distribution bases by eliminating certain prime contractor tax provisions and adjusting retail classification tax allocations effective January 1, 2017.

Establishes a new municipal tax under section 42-6013 levying a two percent tax on sales of tangible personal property to licensed contractors for building permit projects, with revenues distributed to cities and towns based on building permit values.

Creates transitional provisions preserving existing tax treatment for contracts entered into before January 1, 2017 at previous rates while new rates apply to contracts entered after that date.

Amends multiple tax code sections to update definitions, remove references to "prime contracting," and clarify exemptions related to manufactured buildings, environmental remediation, and contractor-related activities.