Arizona Taxpayer Bond for Contractors
What it is & who requires it
Contractors licensed by the Arizona Registrar of Contractors whose principal place of business is outside Arizona, or who have conducted business in Arizona for less than one year. The Arizona Department of Revenue requires the bond to secure transaction privilege (sales) taxes; it can be waived after two years of timely tax payment.
Obligee: Arizona Department of Revenue (ADOR). Citation: A.R.S. § 42-5006 (Taxpayer bonds; out of state licensed contractors).
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Maintained for at least two years (per A.R.S. § 42-5006(A)).
Renewal: Held two years; the licensee may become exempt after two years of timely transaction-privilege-tax payment.
Filing
Filed with the Arizona Department of Revenue by out-of-state contractors and by contractors who have operated in Arizona for less than a year. The Department sets the amount from the transaction privilege tax you are expected to owe (a statutory minimum applies), so the bond is listed and the exact amount is confirmed when you apply. It is maintained for at least two years, and the Department may exempt a licensee with two years of timely tax payment. Authority: A.R.S. § 42-5006.
Source
This bond requirement is corroborated by multiple public sources; Arizona Department of Revenue (ADOR) sets the exact amount, which we confirm when you start your bond.
Related Arizona bonds
Frequently asked questions
- Who requires the Arizona Taxpayer Bond for Contractors?
- It’s required by Arizona Department of Revenue (ADOR) (A.R.S. § 42-5006 (Taxpayer bonds; out of state licensed contractors)). Contractors licensed by the Arizona Registrar of Contractors whose principal place of business is outside Arizona, or who have conducted business in Arizona for less than one year. The Arizona Department of Revenue requires the bond to secure transaction privilege (sales) taxes; it can be waived after two years of timely tax payment.
- How much is the Arizona Taxpayer Bond for Contractors?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the Arizona Taxpayer Bond for Contractors?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Maintained for at least two years (per A.R.S. § 42-5006(A)). Renewal: Held two years; the licensee may become exempt after two years of timely transaction-privilege-tax payment.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
