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They’re After the Money: Virginia Attempts State-wide Alarm Fee

No surprise. As states and cities find they are collecting fewer taxes, they are looking for more money in new taxes. New York is considering an 18 percent tax on soft drinks. California just reached a new tax and spending cut deal. Pennsylvania, Connecticut and Illinois, among others, face raising taxes or new taxes.

It will be tough for some to turn back the tax charge. But, thanks in part of the Security Industry Association (SIA); the Virginia legislature did just that, turning back a proposed new tax on alarm systems.

The state General Assembly had considered a bill (SB 1006 from Sen. Frederick Quayle, R-13th District) that would have required alarm monitoring companies to collect a fee of $2 on each system that they track, with the revenues to be deposited into the state’s Line of Duty Death and Health Benefits Trust Fund. The measure passed the Senate on Feb. 9 but was allowed to die in a subcommittee of the House of Delegates Appropriations Committee just days ago.

 SIA strongly opposed the bill, arguing that it would unfairly single out the alarm monitoring industry and require monitoring companies to become state tax collectors. SIA Director of Government Relations Don Erickson, and a Security Magazine columnist, testified before the Senate Finance Committee and met with several senators and delegates to urge them to find an alternate source of money for the trust fund.

 “This bill would have forced an expensive new burden onto alarm monitoring companies while making security less affordable for Virginia’s residents and businesses,” Erickson said. “Imposing new, unreasonable taxes makes little sense during these trying economic times. We are proud to have helped to stop this misguided proposal.”

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