Bill > A6040

Introduced Session

This bill removes investigation and security services from the imposition of the sales and use tax. Under current law, investigation and security services are subject to the sales and use tax and are broadly defined as: (1) investigation and detective services, including detective agencies and private investigators, and fingerprint, polygraph missing person tracing and skip tracing services; (2) security guard and patrol services, including bodyguard and personal protection, guard dog, guard, patrol, and security services; (3) armored car services; and (4) security systems services, including security, burglar, and fire alarm installation, repair or monitoring services. The tax imposed on these services has increased the overall cost paid by consumers and served as a disincentive for the State's investigation and security services providers. The additional expense associated with the tax has forced certain recipients to reduce the overall level of investigation and security services they receive, and has led certain others to avoid sales tax liabilities through the development of proprietary, in-house investigation and security personnel. The elimination of the sales and use tax imposed on investigation and security services will alleviate the overall tax paid by consumers and reduce the burden imposed on investigation and security service providers in this State. The bill takes effect immediately upon enactment.

AI Summary

Committee Categories

Erik Peterson (R)*, 

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 11/15/2021)