1. "Mini warehouse and
self-storage" rental service means providing a secured area such as a building,
a room in a building, locker, compartment, container, or a secured area within
a building for the purpose of storing tangible personal property in which the
consumer customarily stores and removes the consumer's tangible personal
property on a self-service basis. This term includes, but is not limited to,
storage lockers or storage units in apartment complexes (if the locker or unit
is utilized at the option of a tenant upon payment of a fee in addition to the
apartment rental), amusement parks, water parks, recreational facilities, and
other public locations where lockers are rented for self-storage.
For the purpose of this rule, mini
warehouse and self-storage rental services shall not include:
a. General warehousing and storage, where the
warehouse is engaged in the operation of receiving, handling, and storing
property for others using the warehouse's staff and equipment, and does not
allow the consumer of the service separate access to the storage area used to
hold the property; and
incidental to the lease of real property used for purposes other than the
storage of tangible personal property.
Example 1: A taxpayer is doing business at a location that
provides significant storage space for excess inventory or supplies. The
taxpayer is not purchasing mini warehouse and self-storage rental
Example 2: Tenant B leases an apartment. The apartment
complex offers storage facilities, separate and distinct from the residential
living space, to its residents as an amenity (i.e., Tenant B is not required to
pay an additional fee beyond his regular rental amount for the use of the
facility). Sales tax is not due on any portion of the amount paid by Tenant B
for the lease.
1. The gross proceeds or gross receipts
derived from mini warehouse and selfstorage services are subject to state and
local gross receipts taxes.
total amount charged for providing mini warehouse and self-storage services is
subject to tax. Charges associated with the cost of self-storage such as locks
or keys are part of the taxable purchase price. Charges that the facility
incurs as a result of a tenant who fails to pay including, but not limited to,
auction fees and cut-lock fees are not part of the taxable purchase price. A
security deposit is not part of the taxable purchase price unless it is
converted into a rental payment.