New York May Tax Protective Services

Apr 1, 2004 12:00 PM

New York governor George Pataki has proposed an additional 3 percent sales tax on security services.

The tax has lawmakers and the security industry alike wondering whether the protective services tax would undermine the state's Homeland security efforts.

The tax is one of dozens of fees proposed in the governor's plan to raise $629 million in extra revenue, New York Newsday reports.

Pataki justifies the security surcharge, which would raise $29.3 million, by assuring that the money would be earmarked for various public safety measures, including installing technology so police can trace the location of emergency calls made from cellular phones.

The private security services industry has been telling legislators that building managers and private companies may end up cutting the amount of security staff they employ because of the higher costs, thus reducing some of the street-level protection that augments local police.

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