Airport Authorities are eligible for one tax incentive under the MRZ program: a transaction privilege tax (TPT) exemption on contracts for certain types of construction at an MRZ.
TRANSACTION PRIVILEGE TAX (TPT) EXEMPTION
If an airport authority is planning major construction or renovation, it can apply for TPT exemption on an eligible contract. The TPT savings is passed to the airport authority from the prime contractor through a reduced construction contract price.
- To apply for the TPT exemption the airport authority must complete an application through the Easy Application System (EASY).
- ACA will review the application once submitted. If the airport authority is eligible, ACA will issue a Letter of Eligibility and explain the next steps of the process.
- Before starting work on the contract, the prime contractor must apply for a Letter of Qualification from the Arizona Department of Revenue. Once the prime contractor requests the Letter of Qualification from Revenue, the prime contractor must forward a copy of the request letter to ACA; then, work under the contract may begin.
- Finally, within 30 days of completion of work on the contract the airport authority must submit a Completion Report to the ACA through the Easy Application System (EASY).