Get the FACTS

On Self Storage SALES TAX

Sales Tax on Self Storage is Bad Policy

It Harms the Most Vulnerable

·       34% of Self Storage Tenants have Household Income of Less than $30,000.

·       21% of Self Storage Tenants are divorced or widowed.

·       Nearly half of Self Storage Tenants are not employed full-time.

·       90% of Self Storage Operators are small business owners.

·       Many use self storage out of necessity due to death in family, lifestyle

     transition, relocation, retirement, etc.

·       Almost 10% of Self Storage Tenants are Students.

It Recollects Sales Tax Over and Over

·       Goods in self storage units were subject to sales tax when purchased, and

     may be family possessions handed down from generation-to-generation.

·       Indirectly taxing those goods over and over again by taxing the monthly rent paid to store the items is unfair.

Self Storage Is Rental Real Estate – NOT a “Service” that Should Be Subject to Sales Tax

·       As with other rental real estate operators, self storage involves making space available for tenants to use.

·       Just as there is no justification to applying the sales tax to rent paid for an apartment or an office, there is no logic to applying the sales tax to rent paid to store belongings that will not fit into a tenant’s apartment, home or office.

·       Imposing sales tax on self storage rents alone would create an inequitable, competitive imbalance within the commercial real estate industry.