New York – State Issues Advisory Opinion On Monitoring Services Taxability

Advisory Opinion TSB-A-11(26)S – Petitioner asks whether it is required to collect sales tax on the receipts from the sale, lease, installation or repair of fire and burglar alarms, closed circuit television systems, and from the sale of monitoring services. It also asks when the Petitioner must pay sales or use taxes on its purchases.

The Department conclude that Petitioner’s monitoring services are subject to sales tax under Tax Law section 1105(c)(8) as protective services and Petitioner’s charges for the installation or repair of alarm or monitoring equipment will be subject to sales tax under the conditions outlined in the Opinion. The taxability of Petitioner’s purchases will depend on how they are used or consumed.

For More Information: Advisory Opinion TSB-A-11(26)S