Q. Do security services include the installation of the security system wires and monitoring equipment?
A. No. However, all security system wires and equipment (parts) that are annexed must be taxed based on the installer's contractor option. Charges for contractor labor to install the security system may be taxable. See the notice titled "New Sales Tax Laws Affecting Contractors Beginning July 1, 2006."
All security system wires and equipment (parts) that are installed and remain tangible personal property after installation are retail sales, and the total amount charged for such items and installation is subject to sales tax.
If the installation of a security system involves the installation of both tangible personal property and building materials that are annexed for one contract amount, the total contract amount (materials and labor) is subject to sales tax.
Q. Is a business which provides security services required to collect sales tax on the charge to repair the security system?
A. Yes. The total amount charged to repair a security system is taxable. The charge is taxable regardless of whether the item repaired is annexed property or tangible personal property. See the notices titled "New Sales Tax Laws Affecting Contractors Beginning July 1, 2006" and "If you provide repair or maintenance services to tangible personal property."
Q. I accidentally locked my keys in the car and called a locksmith to open the vehicle for me. Is this a taxable security service?
A. No. This is not considered a taxable security service.
Q. Are security services contracts in effect prior to October 1, 2002, subject to tax?
A. Sales tax applies to all payments for security services recorded as a sale on and after October 1, 2002.
Q. Are charges for monitoring services for patients or residents of a nursing home subject to tax?
A. No. Nursing homes and other healthcare facilities are not retailers of security services.
Q. Are charges for in-home health care monitoring services subject to tax?
A. Yes. Charges for in-home medical and panic alarm monitoring services are subject to tax.
Q. Are off-duty police officers who only provide traffic control services providing security services?
A. No. However, if the officer is providing traffic control services and also has other security service responsibilities for which he or she is being paid, the total amount charged is taxable.
Q. Are off-duty police officers required to obtain a sales tax permit if they only provide security services to organizations or entities that are exempt from paying sales and use taxes?
A. Yes. Officers must obtain a sales tax permit by filing a Nebraska Tax Application, Form 20, and request to file an annual sales and use tax return. He or she must obtain from the exempt entity a properly completed Nebraska Resale or Exempt Sale Certificate, Form 13, to exempt the charges from tax.