Self-service storage businesses

Updated January 2026

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Beginning April 1, 2026, self-service storage businesses are subject to business and occupation (B&O) tax on income from the rental or lease of self-service storage units, where customers have direct access to individual storage units by separate access. This income is taxable under the Service and Other Activities B&O tax classification. You do not have to collect sales tax on the rental or lease income.  

Before April 1, 2026, income received from the rental or lease of self-storage units was not subject to B&O tax because it was considered a rental of real estate.  

Sales of packing, moving, and storage supplies 

Retail sales by self-service storage businesses may include, but are not limited to sales of: 

• Moving boxes. 
• Rope. 
• Locks. 
• Packing tape. 

Income from sales of tangible personal property are taxable under the Retailing B&O tax classification and you must collect sales tax. 

Sales of storage unit contents 

Self-service storage businesses may place a lien and sell storage unit contents when the occupant defaults on terms of their rental agreement. The taxability of these sales is as follows: 

Retail sales: When a self-service storage business sells the contents of a storage unit to consumers, they must collect and remit retail sales tax. You may use the Tax Rate Lookup tool to determine proper tax rate and location code. 

Wholesale sales: A self-service storage business is not required to collect sales tax when the buyer provides a copy of their valid reseller permit or other approved exemption certificate that documents the wholesale nature of the transaction. You must keep copies of all documents provided by your customers. 

No B&O tax due: Because the self-service storage business is authorized to sell the occupant’s contents only for the purpose of satisfying the lien against the occupant, the sales proceeds are not subject to the B&O tax. You must report these sales under the appropriate B&O tax classification and then take a deduction for casual sales. 

Sales conducted by auctioneers 

A self-service storage business may choose to hire a third-party auctioneer to conduct sales of storage unit contents on their behalf. The auctioneer will generally collect and submit sales tax directly to the department on sales to consumers. 

However, if the auctioneer does not both collect and submit the sales tax, the self-service storage business is responsible for submitting the sales tax due. 

Registration requirements 

Self-service storage businesses must register if any of the following are true: 

• Their annual income is over $12,000. 
• They sell tangible personal property. 
• They conduct their own auctions.