Sales Tax Refund! Deadline Approaching!

[jcarlisle]

Wow, this is the first post in the South Dakota thread. I feel like a pioneer.

Anyway, interesting article about the self-storage sales tax refund in this state. In December, the South Dakota Supreme Court ruled that gross receipts from self-storage rentals are no longer subject to sales tax, though taxes had been collected for several years. But the deadline for people to get a refund is Sept. 15:

http://www.insideselfstorage.com/hot...ax-refund.html

[Gina6k]

Oh my gosh! Customers collect taxes paid from the facility?! Eek! What an accounting headache.

So all I can say is hopefully there were no tax increases during the time period covered or that would just exacerbate the problem.

Any idea how many facilities are impacted in the great state of South Dakota?

[MisterJim444]

John:

The real problem that SD owners face, who apply for these refunds, is that it isn't their money. So if you apply and get it back the sales tax funds - you will face the accounting problem of issuing your own checks to customers who traditionally are never that great on giving us their new addresses.

I could see owners being aggressive in their offices with signage and maybe with a direct mail effort with their existing customers providing them the necessary form to apply themselves. Most customers, I am willing to bet, won't go through all the probmes on their own to get a check from SD for their back sales tax payments. However, the owner would still win by holding the customer's hands and providing them with the forms and steps necessary to apply for a refund. Nothing like standing shoulder to shoulder with your customers against "The Man"!

MisterJim444