State representative Steve May (R-Paradise Valley) has introduced a bill that would allow contractors to sign multi-year contracts prior to the June 1 enactment of sales tax hike earmarked for education.
"Since margins in the construction industry are extremely low due to intense competition, tax-rate changes made after the initial bid will be a hardship to many," says a memo to Gov. Hull from the Arizona General Contractors Association. "Contractors are stuck with absorbing the tax increase as a loss."
The bill proposes that contractors who placed bids prior to the passage of the sales-tax increase last November should be exempt from paying the additional .06%.
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