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Vol. 15, No. 2 - February 3, 2009
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Virginia Assembly Legislations Threaten Alarm Industry

The Virginia General Assembly has introduced two bills that will change monitored burglar and fire alarm systems into a service to be taxed per account, per month.

The two Bills (Senate Bill 1006 and House Bill 1997) impose a monitoring tax per month and per account to be paid by the alarm dealer. The moneys collected are to be deposited in the "Line of Duty Health Benefits Trust Fund."

The Senate version of the Bill (S. B. 1006), the Line of Duty Act:

  • Sets a tax of $2.50/month/account.
  • The Senate Finance Committee will vote on it tomorrow, February 4, 2009. 
    It is currently in the General Government/Technology Subcommittee, on agenda for discussion today.
    If it passes through this committee to the Senate Finance Committee, it is expected to go to the Senate floor this week.
  • The legislation is evolving, having gone from taxing $1/month/account to $2.50/month/account. Also, there are some deliberations about extending the tax to local employees.

The House version of the Bill (H. B. 1997), the Line of Duty Act:

  • Sets the tax at $1.00/month/account.
  • The House of Delegates Appropriations Committee is considering the Bill.

"This bill, although filled with good intentions, is unfair as it is asking a small select percentage of the population of Virginia to support a service that 100% of the state uses," said John Kochensparger, president of the Virginia Burglar & Fire Alarm Association (VBFAA).

Even if you do not monitor accounts in Virginia, please get involved! With states feeling the pinch of decreased revenues, it is not unreasonable to expect that if these bills pass, they will be copied around the country.

"We are living in times where every attempt at a new revenue-generating scheme comes with a laudable title which is seemingly very altruistic," said Steve Doyle, Executive Vice President of the Central Station Alarm Association (CSAA).

"This Bill is not just a widows' and orphans' fund, but is a tax on the alarm industry to benefit everyone down to game wardens and dog catchers. The alarm industry is in danger of being fleeced in Virginia and if the Bills pass, the fees will only go up and the concept spread to other states," added Doyle.

"All alarm and monitoring companies who do business in the Commonwealth of Virginia need to realize that they will be affected regardless of where they are domiciled. Additionally, as an industry, we can no longer sit back and ask a few large companies to foot the bill for this fight. All companies conducting business in the Commonwealth of Virginia need to be a member of NBFAA and CSAA and in addition, be ready to step up to the plate financially when the time comes for the legal and legislative battles."

Links to the Bill are at:

Please CALL the General Assembly NOW and STATE YOUR OPPOSITION TO THESE BILLS! During business hours, please call the Constituent Viewpoint Opinion Line at 804-698-1990 or 800-889-0229. Please share this information with as many affected parties as you can.

Please ALSO contact your Virginia State Senate and House of Delegates representatives and communicate your views on overtaxing an industry made up of mainly small businesses.

Please act NOW!
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