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Alarm monitoring is usually a retail sale and subject to sales tax because it meets the definition of a digital automated service.
Clarification of sales tax collection
The Department recently issued guidance (ETA 3189.2018) that clarified that alarm monitoring is generally subject to sales tax. Previously, some service providers did not know that they should collect sales tax on alarm monitoring services.
Alarm monitoring definition
Alarm monitoring involves people using computers, software, and telecommunications to monitor homes and businesses for break-ins, fires, and other unexpected events. Alarm monitoring may involve a combination of automation and human effort. Sometimes, alarm monitoring is called home or business security, home or business monitoring, or security systems. Regardless of the name, this type of service is generally subject to sales tax.
