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Taxes on Self-Storage Outside the U.S.

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  • Taxes on Self-Storage Outside the U.S.

    As numerous states and municipalities in the U.S. consider or implement taxes on self-storage, I am wondering what other nations around the world charge a tax on the service. If so, what's the percentage? Calling all international members to chime in!
    John Carlisle
    Community Manager Emeritus
    Still a Big Fan of Self-Storage!
    www.chicagoprowriter.com

  • #2
    Re: Taxes on Self-Storage Outside the U.S.

    In July here in Canada they will start charging HST (Harmonized Sales Tax) at 13% on the rental price, right now we charge GST @ 5%.

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    • #3
      Re: Taxes on Self-Storage Outside the U.S.

      Similar to what CindyM has stated about what is happening in Ontario, Canada we also have a transition to HST on July 1 which will add 7% more tax onto the 5% GST (Ontario was 6%) we already charge. This NEW tax was never specifically a tax against self storage but more a transition to a consumption tax will eliminating other behind the scenes taxes.

      Regardless, in BC this has been a hotly debated issues. From a storage perspective we are watching carefully to see the impact of how our customers react to a 7% increase next month. Not only in the cost of our product but if someone buys a new home it kicks in as well on the purchase and services to buy. That is also of concern. Both our national and local Association and ownership have actively met with our elected representative to try to seek exemption/compensation. There was some but that has now past. The most concerning part was we were just coming out of the mess of the last few years where most facilities had seen increasing vacancy, price sensitivity and many national economic concerns.

      The second big concern has been PROPERTY TAX. In BC there is a strong feeling that we are being grouped unfairly. Mature facilities in some regions saw increases of 20% to 28% percent this year! That's really hard to fathom when we are already paying 4 to 8 times more then residential property taxes which were high to begin with. Myself and a group from the local Association will be meeting with the Assessment office in charge of storage to see what avenues we can take.

      Otherwise, I watch carefully for anything brewing on the storage specific front and pay close attention to the precedents that occur in the States so that we can learn from experience and hopefully guide the Canadian industry on a good course whenever possible.

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