Security alarm company Sales Tax Question?

If a Florida security alarm company gives away an alarm as incentive to pay for monitoring do they have to pay sales tax on the alarm itself?

Yes, giving away something in this case is not an allowable tax deduction. The only way they would not have to pay for the tax is if the people that get the alarm system have a Tax exemption number. This would apply to things like a school.
Most of the time, the alarm equipment cost the alarm company less then $100.00 costs, which they make up in about a year on the monitoring kickbacks.

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