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The minimum penalty for contracting without a license as a first offense is a fine of $1,000 plus an 83% surcharge. A.R.S. § 32-1164(B). In most cases, an unlicensed contractor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious.
Arizona law allows unlicensed contractors to perform certain jobs as long as they cost less than $1,000, including labor, materials and other items. This is commonly referred to as Arizona's "handyman" exemption for a limited range of services.
WHAT IS TAXABLE? A construction contractor is taxable on the gross income derived from construction contracting performed within the City of Phoenix. A contractor who furnishes labor only (such as a handyman) is subject to the same provisions as a contractor who furnishes both labor and materials.
Minor work includes repairs and small alterations that don't require building permits. Unlicensed handyman in Arizona can do work, such as putting up drywall, assembling furniture, fixing windows, installing doors, and replacing fixtures. A handyman is typically paid around $25 an hour in Arizona.
Contractors who perform work worth over $1,000 must have an Arizona Contractors License. Work that is worth less than $1,000 and is of a casual or minor nature does not carry handyman license requirements. This is commonly known as the handyman exemption.
What can a Handyman do in Arizona? For jobs under $5,000 you can apply for the: R-62 Minor Home Improvements Contractor License. However, you are not allowed to perform any electrical, plumbing, or pool repair, structural work, masonry, HVAC, or concrete work.
Handyman Exemption As stated above, Arizona requires a license for any project over $1,000. If the labor and costs are less than $1,000, you may fall under the minor work exception.