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Arizona contractor taxpayer bonds.
From $100.

Before the Arizona Department of Revenue issues a transaction privilege tax license to a new or out-of-state contractor, it can require a Taxpayer Bond for Contractors (form ADOR 74-4023) guaranteeing the TPT you collect. The amount is tied to your primary contracting type — we price it at 4% of the bond amount, $100 minimum.

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Required under A.R.S. 42-5006 and 42-1102 before ADOR issues a TPT license to certain contractors
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Amount set by your primary contracting classification — commonly $2,000, $7,000, or $17,000
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4% of the bond amount, $100 minimum — enter the amount ADOR set and your exact price appears at the application
4% of amount$100 minimumExactprice shown at the applicationNo credit reviewnot even a soft pull
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Three steps. One sitting.

No underwriting queue for the standard taxpayer bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount ADOR set for your classification, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No credit section in the application and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with your TPT application

Submit the executed bond (form ADOR 74-4023) with your transaction privilege tax license application. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the taxpayer bond actually guarantees

Arizona contractors owe transaction privilege tax (TPT) on their gross contracting receipts. To protect that revenue before a contractor has an Arizona track record, the Department of Revenue can require a Taxpayer Bond for Contractors as a condition of issuing the TPT license — most often for new and out-of-state contractors, or applicants with a history of tax delinquency.

The bond is filed on form ADOR 74-4023, titled the “Taxpayer Bond for Contractor Under A.R.S. Section 42-5006.” The amount is set by your primary contracting classification — published tiers are commonly $2,000 for residential building, $7,000 for single-family and utility-line work, and $17,000 for nonresidential, industrial, and highway work — so confirm the figure ADOR assigned you.

It backs the tax, penalties, and interest you owe the state — not the quality of your work. Many contractors qualify for an annual bond exemption after establishing a clean filing history, and the exemption is reviewed each year. If the surety pays the state, you repay the surety.

A.R.S. 42-5006 / 42-1102 (form ADOR 74-4023)The Arizona Department of Revenue may require a Taxpayer Bond for Contractors under A.R.S. 42-5006, with bonding authority in A.R.S. 42-1102, filed on form ADOR 74-4023 before issuing a transaction privilege tax license to certain contractors (commonly new or out-of-state). The amount is set by primary contracting classification; many contractors later qualify for an annual bond exemption. Confirm the amount ADOR assigned on your notice.

You need this bond if you are

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A new Arizona contractor applying for a TPT license without an Arizona filing history
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An out-of-state contractor taking on Arizona contracting work
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Behind on Arizona taxes or carrying a history of TPT delinquency
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Re-applying for a TPT license after a lapse that reset your bond requirement

One application, issued on the spot.

Submit the application with the amount ADOR set for your classification — the executed bond is generated instantly, ready to file.

Start the application →
FAQ

Common questions.

How much is the Arizona contractor taxpayer bond?The premium is 4% of the bond amount, with a $100 minimum — priced by the amount, not by a credit or underwriting tier. The bond amount itself is set by the Department of Revenue based on your primary contracting type — commonly $2,000, $7,000, or $17,000. Enter the figure ADOR assigned and your exact price appears at the application.
Who has to post it?Mainly new and out-of-state contractors applying for a transaction privilege tax license, plus applicants with a history of Arizona tax delinquency. Established contractors with a clean record often qualify for an annual exemption instead.
What does it guarantee?It guarantees the transaction privilege tax, penalties, and interest you owe Arizona on your contracting receipts — not the quality of your construction work. If the surety pays the state, you repay the surety.
Is there a credit check?The taxpayer bond application collects no credit information.
Can the bond requirement go away?Yes. After you establish a clean Arizona filing history, you can apply for ADOR’s annual bond exemption, which is reviewed each year. Until then, the bond must stay active for your TPT license to remain valid.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
Related bonds

Other Arizona bonds.

Contractor taxpayer bond, issued today.

Priced at 4% of the bond amount, $100 minimum. Enter the amount ADOR set and file with your TPT application the same day.

Your premiumfrom $100
Apply now →