Whats Wrong with Local

1
Whats Wrong with Local State Sales Taxes on
Self Storage?
An industry response kit
2
Talking Points Taxing Self Storage is the Wrong
Policy at the Wrong Time
U.S Foreclosure Activity
Source RealtyTrac
Further Burden on many Self Storage Tenants who
have Lost Their Homes and have no choice
3
Talking Points Sales Tax on Self Storage is Bad
Policy

• A sales tax on self storage rentals is bad policy
  because it
• Is unfair to tenants most of whom use storage
  out of necessity
• Taxing them at difficult periods lifestyle
  transition death in family relocation and
  retirement among other circumstances
• Dont have storage space in small apartments,
  condos, townhouses
• Burdens many tenants who come from low-income
  circumstances
• 34 of storage tenants have household income of
  less than 30k
• 55 of storage tenants have household income of
  less than 50k
• Taxes items in storage purchased previously, on
  a month after month basis
• - Items were taxed when purchased, again taxed
  repeatedly when stored

4
Talking Points Sales Tax on Self Storage is Bad
Policy

• Taxing self storage rentals as a sale is Bad
  Policy.
• The rental of self storage is
• The rental of real property
• - Landlords/Entrepreneurs who own storage
  facilities do not sell a product or service
  rather they rent space for use by tenants
• No different than apartment, retail space or
  healthcare facility rentals
• - Other real estate sectors are not targeted and
  burdened by a sales tax
• A necessity for tenants
• 49 of self storage tenants are changing
  residences
• 70 of long-term renters do not have storage
  space at their residence
• 9 are storing a students items
• 9 store inherited items due to a death in the
  family

5
Talking Points Sales Tax on Self Storage is Bad
Policy

• A sales tax on self storage rentals is bad policy
  because it
• Is unfair to owner/operators already invested in
  the area paying taxes
• Property taxes already make up an avg. of 23.1
  of a self storage facilities total business
  expense
• The avg. U.S. Self Storage Facility pays 58k in
  property taxes annually and some pay hundreds of
  thousands () in property taxes
• Collectively the self storage industry already
  pays 3 billion annually in property taxes

6
Taxing Lowest Income Segments
34 of Self Storage Tenants have Household Income
of Less Than 30,000
Source SSA Self Storage Demand Study
7
Many Self Storage Tenants are Divorced/Widowed
Source SSA Self Storage Demand Study
8
Nearly Half of Self Storage Tenants not
Employed-Full Time
Source SSA Self Storage Demand Study
9
Taxing Local Residents Already Paying Taxes
39 of Self Storage Tenants live within 10
minutes of their unit and already play local and
state taxes
Source SSA Self Storage Demand Study
10
Property Taxes Already Among Largest Expenses for
Self Storage Operators
Source SSA Financial Operational
Characteristics Study