Services subject to tax — Mini-warehouse and self-storage rental services

# (a) Definitions

(a) Definitions. As used in this section:
(1)(A) “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.

(B) This term includes, but is not limited to, storage lockers or storage units in:

(i) 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);

(ii) Amusement parks;

(iii) Water parks;

(iv) Recreational facilities; and

(v) Other public locations where lockers are rented for self-storage.

(2) For the purpose of this section, “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

(B) Storage 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 services.
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.

# (b) Administration

(b) Administration.

(1) The gross proceeds or gross receipts derived from mini-warehouse and self-storage services are subject to state and local gross receipts taxes.
(2)(A) The total amount charged for providing mini-warehouse and self-storage services is subject to tax.

(B) Charges associated with the cost of self-storage such as locks or keys are part of the taxable purchase price.

(C) 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.

(D) A security deposit is not part of the taxable purchase price unless it is converted into a rental payment.