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Debate over taxing self‑storage rentals: proprietors warn of harm to small customers, advocates point to housing preservation uses
Summary
House Bill 19‑07 would change the tax treatment of self‑storage rentals and dedicate the revenue to affordable-housing preservation programs; the bill drew intense public testimony from both small operators and housing advocates.
A bill that would subject self-storage space rentals to retailing business-and-occupation tax and retail sales tax drew strong opposition from owners and trade groups, and support from housing advocates who want to use the revenue for affordable-home preservation.
Under current law the rental of individual self-storage spaces is treated as a rental of real property and is not subject to the retailing B&O or retail sales tax when customers have direct access and rentals last 30 days or longer. House Bill 19-07, introduced by Representative Strom Peterson, would define rental of self-storage space as a retail sale regardless of duration and subject such transactions to retail…
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