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ALARM PERMITS - ACTUALLY A TAX
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Ken,
Is an alarm permit fee actually a tax?
Cities, throughout Arizona, have jumped on board the Arizona Alarm Association's recommending of charging an alarm permit fee, instead of going to V/R.
Phoenix, for instance, charges a mandatory permit fee placed upon the owning of a home alarm, whether that alarm is monitored, or not monitored.
Arizona Constitution, Article 9. Section 2. Property subject to taxation; exemptions Paragraph (4) All household goods owned by the user thereof and used solely for noncommercial purposes shall be exempt from taxation, and such person entitled to such exemption shall not be required to take any affirmative action to receive the benefit of such exemption.
It seems that the Cities, being led by the AzAA, have already disregarded A.R.S. 32-1101.01, Arizona Constitution Article 9, Section 9 and now are disregarding the Arizona Constitution regarding the taxing of household goods, if this permit fee is actually just another name for a tax.
Can you imagine if Cities started charging a permit fee to own a T.V., a hot water heater, or a bed to sleep in? Owning an alarm system, especially a local alarm, is no different than owning a bed.
The Arizona Alarm Dealers Association will be working towards ending this abuse of power this year. So far, the Arizona Alarm Dealers has stopped Cities from requiring licensing of alarm companies, licensing of employees, demanding confidential client information without a warrant and the taxing alarm monitoring.
"You can't fight City Hall," is just a cop out for those who are too lazy to stand up to City Hall.
Can a City legally require a home owner to "register" an appliance that remains in their home? For instance, can you legally be required to register a television by a City? If it is the registering of an appliance, then that is easily challengeable. As easy challengeable, I mean it will be easy to bring forth legislation to end the Cities requiring any registering of house hold goods. Depending upon the make up of the Az Legislature this year, this could be a slam dunk!
Thanks for your continued service to the industry,
Roger D. Score, President
Arizona Alarm Dealers Association
(520) 419-4677
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RESPONSE
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You make good points. Especially about fighting city hall. Who is going to pay for this battle?
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TAKING OVER ADT ACCOUNT - ADVICE
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Ken-
We support a growing group of “Connected Home” dealers with a focus on the higher RMR that these systems command. We have a dealer in TN who will be replacing an ADT system with his more comprehensive version and the monthly will be $99. We have asked for the details of the ADT contract (term, amount) and are recommending that he advise the subscriber to continue paying the ADT amount until its expiration and to deduct that ADT amount from his monthly with the subscriber until ADT is paid in full. At that point, he will engage the full amount. He will be using your residential contract and we were planning to add an addendum explaining this. None of the ADT equipment will be used and the ADT connection will be removed as our dealer will assume the monitoring and responsibility for his installation.
If he continues to pay the monthly to ADT until it expires, wouldn’t that satisfy their (ADT’s) terms? Does it matter that our dealer will be disconnecting the ADT system as long as it is still being paid for?
This is more of a question about future and inevitable take overs as more of our dealers come online. In this actual case, the client has obtained a dollar amount from ADT to terminate and is fine with the payoff. In every case, we advise our dealers to acknowledge and pay off preexisting agreements until the earliest legal day to cancel.
Any advice?
Rob Gerhardt
Group Gerhardt, LLC
Tucker, GA
Office 770.934.8926
Home Office 770.934.4558
Cell 404.510.9264
www.groupgerhardt.com
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RESPONSE
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I suppose a good argument is made that as long as ADT's contract is paid ADT should have no issues. If ADT loses too many accounts this way it might wake this sleeping giant and it may pursue tortious breach of contract lawsuit, claiming it has expectation that account would remain active even once the monitoring contract expired. If probably can't win but it can make your life miserable for a while.
Probably get the same result if the sub just stops paying and can tolerate a few nasty collection letters.
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Webinar Anouncement - no charge to attend
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Title: Learn how to design sales presentations using tablets and computers.
When: October 8, 2014 12 noon to 1 PM EST. Sign in on your computer and dial in to participate. Register here (space limited so register now): https://attendee.gotowebinar.com/register/2478859221657647105
Description: This webinar will introduce you to sales techniques and tools using tablets and computers to do sales presentations. Puffington will customize your sales tools utilizing our templates and proven sales presentations designed specifically for the alarm / security industry.
Presenter: Luke Goetting Luke@Puffingston.com; 312-620-0704 Puffingston is listed on The Alarm Exchange under Technology that increases or preserves your RMR.
Who should attend: Alarm company owners and sales managers and sales personnel
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at 516 747 6700 x 312.
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Texas Burglar and Fire Alarm Association. October 1 - 4, 2014, annual convention at San Luis Resort Spa & Conference Center, Galveston, TX. Register here: http://tbfaa.org/tbfaa-2014-convention-trade-show-attendee-registration/
For more info contact Debi at 281-859-4569. Brad Shipp, Executive Director
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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