August 4, 2011

 

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Comment re auto arm - remote access

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    I use a smarter panel from HAI that gives me options and notification ability to my customer and myself.

    For commercial accounts, I never activate the auto bypass feature for just the concerns mentioned here.  I also have my commercial panels call the owner or person in charge if the system is not armed by a certain time of day.  All I have to do is write a few lines of code in the panel that

1)      Arm at a specific time of day, which can be adjusted by specific days if necessary

2)      Or call specific people in the event the alarm is not armed on time, which can occur due to an open zone, a forgetful employee, and intentional oversight etc.  They can dial into the panel and get an audible status update of the zone and system conditions enabling them to make the necessary adjustments.  The panel also calls when it is disarmed, if necessary or desired.

3)      Install enough back up battery support in case of a power failure and if necessary place power hungry devices on an external power supply to help maintain the clock time.

4)      Because there is an arming delay to allow proper time for exit, I can also have the system flash an outside light or trigger a short burst of the external siren once it is armed, notifying the person who just armed the system that it armed correctly before they drive away.

    The list of panel notifications is almost endless based on the needs of the owner.

Stephen

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NOTE:  The new Subscriber Enabled Monitoring Service Contract is latest contract to address the self monitored systems with remote access control.

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Is self monitoring a fool's game?  A danger to alarm companies?

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    Self Monitoring is a Fools game and dangerous for many reasons. As a dealer you make little to no money and should the customer during the night or day need outside help it won't be coming and may open you up to serious legal issues for selling this product.  In addition, possibly causing them or others to go to a location that may occupied by some nefarious individual that could put them in harm's way.

     Why would anyone want to sell or for that matter buy a system like that. It's also hard to respond when you're out of town, at dinner somewhere, the theater or asleep with the ringer turned down or off. 

    I guess my question is what kind of a security system is that and who would really want it after thinking about it?

    Also, is there some liability for selling this in the name of Security System or Alarm System should the unfortunate happen? My guess is there are quite a few Lawyers out there who might think so depending  on what it was called when sold.

    I believe we have a responsibility to point out these issues and advise it is a very low level advisory system at best  that won't be sending any help no matter what. There is no replacement for what a reliable Alarm System provides and we should be advising the public to these issues.

Bob K

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Ken,

    Regarding the exchange between Stephen and Daphne¦Let me pose a hypothetical business case and question to you:

    Joe and Peter both have taco stands on the streets of downtown San Antonio.  They sell delicious beef tacos and have both enjoyed reasonable success selling their tacos on the streets of San Antonio since 1980.  But they are seeing a disturbing trend.  Attitudes towards beef are changing and downtown San Antonio seems to have more and more vegetarians.  They are even asking Joe and Peter for tacos without beef.  Joe, in a state of defiance says, "This is heresy!  Real tacos have beef; that's the way its always been and that's the only tacos I sell.  I've been doing it this way since 1980 and I'm not changing!  Those vegetarians need to get a life and discover what a real taco is all about!

    Peter on the other hand, thinks to himself¦.Well I believe a beef taco is the only real taco, but people seem to think otherwise.  I guess I'll relent and offer vegetarian tacos and see what happens.  So he starts to sell vegetarian tacos and while he doesn't get as much revenue on these tacos, his gross profit margin is actually better because of the high cost of beef. 

    After one year in this model, his sales off are the charts and his total net profit is three times higher than his best previous year.  He becomes so successful that he opens up a restaurant chain catering to beef taco lovers, vegetarians and now even offers a vegan taco.  He becomes so wildly successful that the San Antonio Business Journal writes an article about him with a picture on the cover of the SBJ with him standing next to his Ferrari eating a vegetarian taco.

    Okay, so here's the question¦In this hypothetical business case, who represents Daphne and who represents Stephen?

Mark

San Antonio

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more on sales tax

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Ken,

    I spoke to NYS Dept of taxation MANY years ago. This what they told me.  The foil on the window is removable so its taxable. Even though you can never remove it and reuse it.  The wires snaked behind the walls is not taxable as part of a Home improvement.  The wires stapled on top of mouldings is removable so its taxable.  The keypad is removable so its taxable.  The alarm panel was a split decision.  If its installed in between the beams then it was NOT taxable. If it was installed on top of the sheet rock as most are, then it is a taxable sale.

    There's lots of confusion in this area.

    My advise is to get a good accountant.

Sincerely,

Yair Lax

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    Good answer. [see below] Capital improvement is not 100% tax free. There are rules to follow and the rules are never black & white. Tax varies from county to county and each county may have different view on what's capital improvement and what's not. The hardest part of any job is to deal with the government and it is not worth the trouble. You may get incorrect answer and nobody gives you anything in writing. The only thing you will get in writing from the government is harassment, fines, extortion and imprisonment threat.

Dusan

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Answer

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    I suggest you ask your accountant this question.  But, for what it's worth, I would recommend charging, collecting and paying over the sales tax.  The alarm and cctv system you are installing, pursuant to my Standard Contracts I hope, will state that the equipment is personalty, not a fixture, not affixed to the realty, and is removable.  This is an important feature, especially in New York, because there are statutes that prohibit some of the protective provisions found in the Standard Contracts when the work is for construction work for real property. 

    There are definite risks regarding sales tax and you need to know when to collect and when not to.  Mistakes are at your peril because you'll be required to pay it even if you didn't collect it, and you'll be required to return it after you paid it to the state, and the state won't refund what you paid, so that too will be out of your pocket.  Of course, you do have to get caught and your negotiations can have a different result. 

    I'll leave a better answer to any accountants or tax lawyers our there who are willing to comment.