Questions and Answers
Monitoring of Alarm Systems
Kansas Retailers' Sales Tax
SUBJECT: MONITORING OF ALARM SYSTEMS
BASIS: Separately stated charges for the service of monitoring fire or security alarm systems are not taxable. These services are not among those listed in K.S.A. 2004 Supp. 79-3603 as being taxable.
When monitoring equipment is placed in a residence or commercial building, the equipment may be taxed in a variety of ways including on its selling price to the consumer or on its cost to the retailer. How the equipment is taxed depends on the terms of the contract entered into by the parties.
See In re Tax Appeal of AT & T Technologies, Inc. 242 Kan. 554, 561-2 749 P.2d 1003 (1988).
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