Sales of alarm systems on an uninstalled basis are typically sales of tangible personal property that are subject to sales tax. Residential burglar and fire alarm systems that are installed to real property may qualify as a capital improvement that is exempt from New York sales and use tax. To qualify for this exemption, the alarm system must meet all of the following qualifications. (1) It must remain functional within the residence regardless of whether the property owner subscribes to the alarm service offered by the vendor of the tangible personal property. (2) It must be installed in such as manner as to be considered permanently affixed to the real property. (3) It must become the property of the homeowner upon installation and be sold without the vendor retaining any rights of ownership or rights of removal of the system. (Lombardi (Advisory Opinion), New York Commissioner of Taxation and Finance, TSB-A-04(5)S, February 27, 2004)