The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, and ammonia alarm systems are nontaxable fixtures and (2) alarm monitoring services are nontaxable services.
A nonprofit limited liability company who produces food and beverages entered into an agreement with a security and alarm company for the installation and monitoring of an alarm system.
Missouri taxes tangible personal property and designated services. The department ruled that although an alarm system is tangible personal property, it qualifies as a nontaxable fixture. Fixtures include items of tangible personal property that are adapted to and permanently attached to real property. Because the alarm systems were permanently attached to the company's buildings, they were fixtures. Additionally, the Department determined that alarm-monitoring services are not taxable.