101 Definition of Contractor

• Jurisdiction: Arizona

“Contractor” has been defined in Arizona statutes and cases.

The Arizona Supreme Court had the opportunity to define “contractor” in Moore v. Smotkin, 79 Ariz. 77, 283 P.2d 1029 (1955), in which the court was called upon to interpret the Excise Revenue Act of 1935 (forerunner of A.R.S. § 42-1301 et seq.). This act imposes an excise tax on the gross proceeds of persons engaged in the “business of contracting.” The taxpayers were engaged in the subdivision and improvement of residential lots, construction of residences on the lots, and sale of the house and lot as an integral package. The court held that the taxpayers were not subject to a tax on “contractors” because “a contractor is one who enters into a contract to do special work for another, according to price specifications, and terms agreed on.”...