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Minnesota Taxes?

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  • Minnesota Taxes?

    Good Morning!

    I'm new to the site, like many others I have been watching, reading, and absorbing all of the information you guys have been posting. This has been an amazing help! We are starting up a new indoor, climate controlled, self storage facility and I was wondering if anyone knew if there was sales tax on the units in Minnesota? I have been trying to find some information on this and am getting cross information. I just want to have all my ducks in a row before we open up!

    Thanks!

  • #2
    Welcome to the forum. Someone from Minnesota will chime in.
    "Never let the inmates run the asylum!"

    Comment


    • #3
      Thanks!

      Comment


      • #4
        I Googled "Minnesota self-storage and sales tax" and found this.


        https://jux.law/storage-and-warehousing-services/

        It looks like you should be charging sales tax to your tenants BUT it also looks like if they are storing a car or any motor vehicle it does not get charged sales tax.

        Do you happen to have a lawyer on retainer OR an accountant?
        Also, do you have any direct competition in your neighborhood?
        You may want to put together a welcome package, a bag of chocolate or a small gift card and walk into that office and ask to speak to the manager and pick his/her brain.

        Don't put off until tomorrow, what you can do today.

        Comment


        • #5
          Found this too

          http://www.revenue.state.mn.us/busin...eets/FS164.pdf

          Could you just call the local State Tax Office and ask?
          Maybe they even have an email address and you can enquire via email.
          Don't put off until tomorrow, what you can do today.

          Comment


          • #6
            Lady,

            So doesn't this snippet count as us not having to charge tax?
            • Self-storage services and storage of motor vehicles, recreational vehicles, and boats (when those services cannot be deducted as a business expense)
            Since we are a self storage service? I understand what you are saying, its just i'm confused because above on that site it says if you have documents and tangible storage to tax them. Isn't that pretty much self storage its going to be tangible and you might put documents in there like I can't control what you put in there haha (well with in guidelines I can)
            Yes, we have an attorney, so should probably just ask him huh.
            Kind of. There is a self storage, but they are outdoor rental units.
            We went to our neighboring town and did that. Unfortunately the manager we talked with couldn't really give us the answers we were looking for. :/
            Some of them were answered/confirmed, but the only thing I think that is left to do before we open is knowing about sales tax.

            Thank you!

            Comment


            • #7
              Have you tried to contact your local municipalities tax office OR your state's tax office?
              Don't put off until tomorrow, what you can do today.

              Comment


              • #8
                Try and call this number

                Sales and Use TaxI found that on this website....
                http://www.revenue.state.mn.us/pages...t_us_page.aspx
                Don't put off until tomorrow, what you can do today.

                Comment


                • #9
                  Simly call your States Department of Revenue. Ask the question and you will get an answer from the proper authority than getting speculation here.

                  I am in Iowa, though could be different from Minnesota. We are taxed on all storage income.
                  I started in the Construction business over 35 years ago and it was very unclear about what construction jobs were and were not taxable.
                  When I started to put up a few storage building on the back of my Construction property, I call the state and was advised that all storage income was taxable and to just run it under the same sales tax permit.
                  Now I have closed the construction company down, all I had to do was change the name of the permit to the storage bunsiness name. It made it so much easier to compute taxes.

                  I also look at it as- Charge tax and you can't be wrong. Don't tax, and you may be paying a big bill when you are audited
                  Last edited by Newco; 16th May 2018, 04:49 PM.

                  Comment


                  • #10
                    Good Morning!

                    Update on taxes. The lady from Sales & Use Tax Division, Policy Services of Minnesota Department of Revenue said the following:

                    The rental of a self storage unit that is not portable is exempt from sales tax.

                    The rental of a portable storage unit is taxable.

                    Thank you so much for your guys' help!

                    Comment


                    • #11
                      Good to hear you got a straight clear answer.

                      Comment

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