AZ HB2826

Amends Arizona's Transaction Privilege Tax (TPT) statute for prime contracting to expand exemptions related to agricultural operations.

Adds ditches, canals, and irrigation lines to the list of structures eligible for tax deduction when modified under contract with commercial agricultural producers.

Expands qualifying purposes for the agricultural deduction to include improving irrigation efficiency and water conservation, in addition to existing pollution prevention and control purposes.

The tax base for prime contracting remains at 65% of gross proceeds, with this exemption applying as a deduction before calculating the taxable amount.

Applies to contracts with persons engaged in commercial production of livestock, livestock products, or agricultural, horticultural, viticultural, or floricultural crops in Arizona.