June 23, 2011
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property and use tax
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Ken:
I can't help adding to this conversation. When Brinks "leased" their equipment to the customers through their dealers, they agreed to bill the customer the property and use tax on that equipment and send it to the state where I installed it for them. Well, come to find out they didn't do this properly. Since they own the equipment, it was their responsibility. Well, guess who got stuck with the bill. When I made a comment to the Brinks tax department about their large outstanding tax obligation regarding this, his response was " tell me about it". They first agreed to pay this then stopped returning my phone calls and emails. My guess is this may be another reason why they got out of the business ...the possible outstanding expense with the states. Is this something we can go after Brinks or ADT to recover?
anon
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Ken
I have been following the articles about the Florida Sales Tax issues
on monitoring, service, and installation. What a mess. But Florida
dealers should be contacting their legislators to fix the problem
instead of "guessing" what is right and wrong.
In New Jersey we had similar issues in the past. Although it's a
little costly, the Legislature fixed things (by being greedy as
usual). They declared monitoring sales taxable services many years
ago. And under Mr. "Tax and Spend" Jon Corzine they declared alarm
installations and all service including labor sales taxable.
This makes it easy to collect and pay sales taxes. The only things
not taxable are customers that are exempt and then technically the
dealer is supposed to pay sales tax on parts used in those
installations and services.
Essentially they eliminated the sales tax exception for capital
improvement of real property for alarm systems, flooring (yes,
hardwood floors), and a few other items.
I recommend that Florida dealers and alarm associations write and call
their representatives to get clarity by writing a clearly understood
sales tax law regarding their work.
Glenn Smith
Owner Alarm Service Company of N.J.
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water damage claim
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Craig:
Devices fail. Even if they are installed properly, tested and signals sent to the monitoring facility.
David L. Myers
Myers Protection Services
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licensing issue
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Hi Ken,
as a follow up to Richards comments, I just happen to be fixing a security system at the city yard the other day and noticed 3 of the illegal signs (picture attached) that Lonestar places around town that have been picked up and put in the pen along with errant shopping carts. Please notice there is not even a license number presented on the advertisement (a big no-no in CA as the Bureau wants to be sure a consumer can verify your license before even calling on you). It’s a good thing that the California BSIS is doing their job pulling unprofessional alarm companies licenses that get in the way of ratified business concerns.
Yours for better security,
Steve Sopkin, President
Mijac Alarm
Rancho Cucamonga, CA
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Police Chiefs issue
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Ken... Thanks again for your respect for "freedom of speech", and the respect for the intelligence of your readers. Both of which may have been questioned by a reader in the June 6 Newsletter, when previewing a "Position Paper on Alarm Management" presented by the International Association of Chiefs of Police/IACP.
For over 50 years, the monitoring segment of the Alarm Security Industry (like ADT, Monitronics, CMS) has included the local public police as an integral part of the basic business model. More than 25 Million customers are paying $7.5 Billion annually, which has a market value exceeding $25 Billion. If the police are removed from the business model, the industry could collapse.
I believe the IACP Position Paper is nothing more than a transparent disclosure document. The local police are withdrawing, directly or indirectly, from that business model, or have already gone. Rightfully, it frightens some alarm associations because it clashes with industry agenda. Let your readers sort the facts from fiction by continuing honest debate.
... just my observations.
Lee Jones, Support Services Group