New York – Taxability of Alarm or Monitoring Equipment and Services

SALT Report 1186 – The New York Department of Taxation and Finance has issued an advisory opinion regarding whether a taxpayer is required to collect sales tax on its receipts from the sale, lease, installation or repair of fire and burglar alarms, closed circuit television systems, or from the sale of monitoring services. The Department also addressed whether a taxpayer must pay tax on purchases of such items.

The opinion concluded that monitoring services are subject to sales tax under New York Tax Law §1105(c)(8) which designates these as “taxable protective or detective services.”  These taxable services and items include but are not limited to:
  • Protection against burglary
  • Theft protection
  • Fire protection
  • Water damage
  • Any malfunction of industrial processes
  • Any malfunction or damage to property or injury to persons
  • Detective agencies
  • Armored car services
  • Guard patrol and watchman services
All charges for the sale, lease, installation or repair of alarm or monitoring equipment are subject to tax whether or not tangible personal property is transferred as specified in the advisory opinion.
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