Section 230. Burglar, security, and fire alarm systems

A. Monitored systems. As used in this section, the term "monitored systems" shall mean burglar, security and fire alarm systems which are furnished, installed and monitored under contract with the person furnishing and installing such systems. Systems which are monitored by a person other than the person who furnishes and installs such systems, e.g., those which are connected directly to the police or fire department, are not "monitored systems" as the term is used in this section.

Charges for monitored systems constitute charges for a service which is not subject to the tax. The person selling/leasing and installing the monitored system is deemed to be the consumer of all property used in providing the service and must pay the tax on such property at the time of purchase.

B. Nonmonitored systems. Persons engaged in the sale or lease and installation of burglar, security or fire alarm systems are engaged in making retail sales, the total charge for which is subject to the tax. Separately stated installation charges are not subject to the tax. Persons engaged in retail sales or leases must register as a dealer and collect and pay the tax with respect to such transactions. All items used by a dealer in installing such a system, for example wiring which remains a part of the building, nails and similar items, are taxable to the dealer at the time of purchase.

C. Other security devices. The sale of security and fire devices such as smoke detectors, and similar items which do not become attached to realty are retail sales of tangible personal property, the total charge for which is subject to the tax. Persons engaged in the sale and installation of other types of security devices such as permanent window bars and similar items which become permanently affixed to realty are contractors with respect to such transactions and must pay the tax on all property installed or used in installation at the time of purchaser withdrawal from nontax paid inventory.

Historical Notes

Derived from VR630-10-17.1, eff. January 1, 1985.

Statutory Authority

§ 58.1-203 of the Code of Virginia.