Investigation, security, security monitoring, and armored car services now subject to sales tax

Intended audience: Businesses that provide investigation, security, security monitoring, and armored car services.

Beginning Oct. 1, 2025, businesses must collect retail sales tax on investigation, security, security monitoring, and armored car services. Additionally, gross income from these activities is subject to business and occupation (B&O) tax under the Retailing classification.

Which services do I collect tax on?

Investigation, security, security monitoring, and armored car services include, but are not limited to:

• Background checks.
• Security guard and patrol services.
• Personal and event security.
• Armored car transportation of cash and valuables.
• Security system services and monitoring.

Note: This does not include locksmith services.

How do I report these services?

On your excise tax return, report gross income from these activities under the Retailing B&O, retail sales and local sales tax classifications.

If you have not previously reported retail sales, you may need to add these classifications. To add classifications:

1. Log in to My DOR.
2. On the My DOR Services page, click Get Started.
3. In the Excise Tax Return panel, click the File Return link.
4. Click the Add/Delete Tax Classifications button. Add the retailing, retail sales, and local sales tax classifications. Click Next.

The retail sales tax is based on the location where your customer receives your services or product. Use our tax rate look up tool to determine the correct rate.

More information

Section 101, chapter 422 (Engrossed Substitute Senate Bill 5814), Laws of 2025.

Our Services newly subject to sales tax webpage will be kept updated with additional resources, answers to frequently asked questions, and opportunities to engage with the department.

Questions?

Please call 360-705-6705.