006.05.212-GR-9.9. SERVICES SUBJECT TO TAX - MINI WAREHOUSE AND SELF-STORAGE RENTAL SERVICES:
AR ADC 006.05.212-GR-9.9Arkansas Administrative Code
Ark. Admin. Code 006.05.212-GR-9.9
006.05.212-GR-9.9. SERVICES SUBJECT TO TAX - MINI WAREHOUSE AND SELF-STORAGE RENTAL SERVICES:
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.
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.
2. The 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.
Credits
AUTHORITY: Ark. Code Ann. § 26-52-316
Current with amendments received through May 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.212-GR-9.9, AR ADC 006.05.212-GR-9.9
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