Pima County Rate Increase –Pre existing contracts

 For prime contractors reporting under Class 15 only, prime contracting contracts entered into prior to the May 16, 2006 election may not be subject to the increase in the tax rate if the contract does not provide a provision that entitles the taxpayer to recover from the purchaser the amount of the additional tax levied.  Contractors having contracts meeting this condition are not subject to the increase in tax. Prior to filing in this class, a contractor must get authorization from the Department. Upon request from the Department, a contractor shall provide sufficient documentation to verify that a contract was entered into before the date of the election to authorize the tax and that the contract did not contain a provision entitling the contractor to recover from the purchaser the amount of additional tax.