November 19, 2011

 

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Question on sales tax

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Ken:

On your contracts there is an asterisk below the Total Installed Equipment Cost that says "* excludes taxes". Do we need to be adding the asterisk to Total Installed Equipment Cost* that we fill in?

I have not been doing that and tell the customer that the deposit does not include tax and they will be billed on the final bill for taxes. Now I am faced with any attorney for a client not wanting to pay taxes.

Thanks in advance.

John

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Answer

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First, I do not believe any of my Standard Form Contracts have an asterisk and language that excludes sales tax. The contracts do state, plus sales tax, if any. Unless there is specific consumer statute in your state that requires you to disclose the entire purchase price including sales tax, sales tax is not part of the purchase price. It's an add on that is imposed by the state. Your obligation is to collect it, hold it in trust, and pay it over to the tax department. You do not impose the tax. I think if your contract is silent on sales tax and disclosed a price you should be able to add on the sales tax. Restaurants don't show a price plus tax. It's just charged. Same with other retail businesses, unless there is a state law that requires the disclosure.

I suggest you get the Standard Form Contracts, without the asterisks.

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Covert cameras in house

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Question

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Ken

Do not install covert cameras inside a residence?

Kasey Hansen

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Answer

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Yes I did say that. Seemed like good advice at the time. There is a certain amount of expectation of privacy within the home, not limited to bathrooms and bedrooms. I know that covert cameras are used in homes; nanny cameras, and that many improper conduct has been discovered. I think it will come down to whether the cameras pick up images that are not illegal and are used in an inappropriate way. For example - the kids have sleep over friends and a covert camera in the living room or kitchen - not private areas- pick up naked kids running around. Ends up on the Internet. It's a very gray area and I think you need to address each scenario carefully.

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Question on terminating service

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Hello Ken,

 

we are currently using your contract and have a couple questions.

1. What is the process and or ramifications if we need to cancel a customer (turn off central station monitoring) for non payment?

2. What risk do we have if we do not have a contract with a customer?

All our customers own the equipment.

Thanks,

Jerry

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Answer

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You can terminate monitoring service for non paying subscribers. If you have my Standard Form Contract you don't have to give notice. However, even with the contract I suggest that you send a letter, regular mail is fine, or email or fax, that you are terminating service on a specific day and time. Then do it.

If you terminate a subscriber who is not actually in default then you are the one breaching the contract and you have liability. You can send as many warning letters you like offering the subscriber the opportunity to pay and cure any default. But once you decide to terminate, no more payment option. Pick you date and time and then terminate and sue if you want to.