North Carolina DOR Issues Private Letter Ruling on Sales, Use Taxability of Customer Surveillance Solutions

The North Carolina Department of Revenue (DOR) issued a private letter ruling on the sales and use taxability of surveillance solutions at customer sites. The taxpayer’s pricing is based solely on the value of labor and equipment, and the taxpayer’s contract lists charges for setup, installation, and deployment and an additional charge for cameras, solar, battery, and various services. Customers control cameras at contracted locations by using web browsers or smart phones. The DOR determined that the taxpayer’s charges to its customers for tangible personal property and services, for a fixed term, meet the definition of a lease or rental. ...