006.05.06 Ark. Code R. 005-GR-9.12

Current through Register Vol. 49, No. 10, October, 2024

Rule 006.05.06-005-GR-9.12 - SERVICES SUBJECT TO TAX - SECURITY AND ALARM MONITORING SERVICES

A. The gross proceeds or gross receipts derived from security and alarm monitoring services are subject to state and local gross receipts taxes.

B. DEFINITIONS.

1. "Security services" means video monitoring and security guard services utilized for the purpose of providing safety or security for property or persons without regard to the identity of the person or persons providing the services.

2. "Alarm monitoring services" means services that use devices located at a residence, place of business, or other fixed premises to receive signals from other devices located at or about such premises regarding a possible threat at such premises to life, safety, or property, from burglary, fire, vandalism, bodily injury, or other emergency. Alarm monitoring services do not include a service that uses a medical monitoring device attached to an individual for the automatic monitoring of an ongoing medical condition.

C. EXEMPTIONS FROM TAX. Security services provided by an employee, or a temporary or leased employee as defined by Ark. Code Ann. § 26-52-301(3)(B)(vii), of the business utilizing the services are not subject to the tax. Wireless tracking, recovery, communications, diagnostics systems, and similar services that provide security as a part of a more extensive package of services are not taxable, unless the services provided in addition to security services are also taxable services. (See GR-93.)

D. PERSONS RESPONSIBLE FOR COLLECTING AND REMITTING TAX. The tax shall be collected and remitted by the seller (the person or entity billing the consumer) of the security or alarm monitoring services. The installation of a security alarm is not a taxable service; however, if a fee for monitoring is charged and the installation fee is not separately stated on the invoice, the entire amount of the invoice is subject to tax.

E. LOCAL TAXES. For the purpose of determining the correct local gross receipts taxes to collect, security and alarm monitoring services are sourced based upon where the customer makes first use of the service. Video monitoring services, security guard services, and alarm monitoring services are specific to an actual location and the local taxes at the location of the residence, place of business, or other fixed premises where the services are rendered shall be applied.

006.05.06 Ark. Code R. 005-GR-9.12

Ark. Code Ann. § 26-52-316