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How is the tax on the bid figured?

bid figured tax
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How is the tax on the bid figured?

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The State of Arizona and all cities give a 35% “discount” to contractors for sales tax charged on gross labor and materials. Normal sales tax is typically 7.4%, so less 35% leaves 4.81%. All materials Professional Images uses are purchased tax-free so tax is only paid once. Arizona DOR Pub 603 states all contracting must be taxed on both the labor and materials, see http://www.azdor.gov/brochure/603.pdf for exact wording.

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