Laws & Regulations

Sales and Use Tax Exemption

Through our years of experience renting two way radios, we have worked with many companies that organize events on behalf of not for profit organizations. Throughout those times, we have realized that there is not a clear understanding of when those not for profit organizations are exempt from paying sales and use taxes for the purchase of tangible property and services.

The fact that the organization has qualified with the IRS to be exempt from federal taxes doesn’t automatically makes the organization exempt from Sales and Use taxes. Each state has its own rules. It’s the organization’s responsibility to apply for a Sale and Use certificate of exemption.

The following are links to the DC, Maryland and Virginia government websites where they explain who qualifies for a certificate of extension and how to obtain one. To find information about other states’ requirements, just visit their government websites and search for information on Sales and Use tax exemptions.

DC
Maryland
Virginia

FCC Narrow Banding

Beginning January 1st 2013 Narrow banding is the law of the land.

Radio Band Width refers to the amount of frequency width the radio is allowed to transmit on. On January 1st it changed from 25Khz to 12.5 Khz. What does this mean?

For the two way radio manufacturers, it means that they are not allowed to sell any two way radio which will only work in WIDE BAND mode for US use. Most, if not all, manufacturers have also taken the additional step of upgrading the software that programs their two way radios to only allow NARROW BAND functionality. This causes any radio previously programmed to WIDE BAND to automatically change to NARROW BAND functionality if it is plugged in to the computer and programmed by the new software.

Upgrades are also being included in to the new radio firmware for radios being shipped. If the dealer does not upgrade the programing software to the new version, newly arrived radios will not program on the old software. This guarantees that all radios programmed today will only operate on Narrow Band mode.

For radio Users, it requires changing their FCC license to designate they are using their radios in Narrow Band mode. Along with the change to the FCC license, they also have to program ALL their two way radio equipment to NARROW BAND operation. ALL equipment includes mobiles and repeaters. For customers who have equipment built within the last 10 years it is a simple programing change. Older equipment may require a new repeater or radio equipment.