Valley of the Sun, Phoenix, AZ

One of our estimators says that Box Culverts qualify as exempt under the large water pipe TPT credit.  I can't find anything from ADOR as to exactly what qualifies but some other opinions show that pipes, valves, and anything that is used in operating the pipes and valves qualifies. Would box culverts meet this definition?

Gary Blair CPA CCIFP - Controller

Office: 6939 E. Parkway Norte, Mesa, AZ 85212

Mail: 21738 E. Orion Way, Queen Creek, AZ 85142

Office: 480.595.8073   Fax: 480-575-0814

gary@blucor.com     www.blucor.com

Our research into this a few years back was a "yes", and is supported by an old tax ruling (TPR 02-2) where they note: Storm water drainage system . . . is "Not Taxable".  There was some discussion at the time about manufacturing the culvert at the site, or off-site.  If off-site and brought to the job for assembly, the thought was the entire cost would be exempted.  If built on site, we felt the DOR would likely only allow the materials portion of the culvert (thus, eliminating the labor, forming costs, eqt, etc.).