Sales Tax State Activity Update - April 2004

Certain Installations Of Home Alarm Systems Exempt in New York

The installation of residential burglar and fire alarm systems will qualify as a capital improvement to real property and therefore be exempt if three tests are met.

1) The alarm system must remain functional within the residence regardless of whether the property subscribes to the alarm service offered by the vendor,

2)The installation must be in a manner which is considered to permanently affix the system to the real property,

3) The system becomes the property of the homeowner upon installation and without the vendor retaining any rights of ownership or having the right of removal.

(Lombardi (Advisory Opinion), New York Commissioner of Taxation and finance, TSB-A-04 (5) s, February 27, 2004) 04/04

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address