Whether an owner building to sell may buy materials exempt, and from which taxes
Sent to ADOR Tax Policy on October 7, 2026. A response is outstanding.
The question
ADOR's Contracting Guidelines page says contractors other than the owner may buy materials exempt, and the owner is not permitted to. Model City Tax Code guideline TG 2001-01 says an owner building improvements to sell may claim an exemption from city tax on direct materials, on a written declaration with its city license number. The question asks which taxes such an owner may buy exempt from, and what documentation establishes it.
When an answer is expected
ADOR Tax Policy states a response time of 25 business days for Transaction Privilege Tax questions, answered in the order received. Follow-ups are sent on business day 25 and every 10 business days after that. The next follow-up is due November 13, 2026.
The answer is recorded on this page when it arrives, with every place it changed something on this site.