Sales Tax Articles
Sales Tax State Activity Update
February 2007
An "Alarming" Advisory Opinion from New York
The New York State Commissioner of Taxation and Finance recently issued an Advisory Opinion explaining how a security alarm services provider may purchase security equipment exempt for resale when leased separately from alarm services.
An alarm services provider is leasing equipment separately from services, when he retains ownership or the right to remove equipment, the installed equipment remains functional and could be rented by the customer for use as a local alarm service or in conjunction with central alarm service offered by other providers.
If the equipment is not otherwise functional as a local alarm service or used in conjunction with central office services offered by other providers, the installation of the equipment is considered part of the charge for security services. In this instance, the security equipment is used or consumed by the service provider and may not be purchased exempt for resale.
The full text may be accessed on the New York State Department of Taxation and Finance website.
(New York Commissioner of Taxation and Finance Advisory Opinion TSB-A- 06(31)S, 12/14/2007 )
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