HB 2727 Summary

• Increases the dollar threshold for contractor licensing exemptions from $1,000 to $2,500 for materialmen, manufacturers, retailers, and casual/minor work projects.

• Requires the Arizona registrar to annually adjust the $2,500 exemption amount for inflation starting December 31, 2023, using the GDP price deflator as defined in section 41-563.

• Simplifies the electrical appliance exemption criteria by removing the list format and clarifying that exemptions apply only to appliances that can be plugged into a common electrical outlet.

• Applies these increased thresholds and annual adjustments to paragraphs 4, 9, and 14 of section 32-1121 covering materialmen, retailers, non-fabricated products, and minor construction work.