Arizona House Considers Tax Reform for Residential Contractors

February 13, 2023 Last Edit: June 5, 2025

NFIB urges lawmakers to support HB 2807 to simplify tax compliance for small to mid-sized contractors and subcontractors

Arizona House Considers Tax Reform for Residential Contractors

PHOENIX (Feb. 13, 2023) – Ahead of Committee hearing on HB 2807, which would simplify tax compliance for contractors and subcontractors, NFIB State Director Chad Heinrich issued the following statement: “The state’s official guidance on this issue is more than 20 pages long and provides at least 30 different scenarios for contractors and subcontractors to sort through. Tax compliance is arduous and time-consuming. By simplifying the tax code, lawmakers will ease the burden on small and mid-sized contractors and subcontractors – so they can spend more time doing what they do best.” Background: According to the Arizona Tax Research Association, HB 2807 simplifies the tax code by eliminating the 25% threshold for residential remodeling jobs that don’t expand the existing square footage of the home.

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Taxes

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