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Self-storage businesses now subject to B&O tax

Issue Date

Intended audience: Self-storage businesses  

Starting April 1, 2026, income from the rental or lease of storage space at self-service storage facilities is subject to business and occupation (B&O) tax under the Service and Other Activities classification.  

Self-storage businesses no longer qualify for active non-reporting (ANR) status if their annual income is more than $125,000, even if they do not make retail sales.  

What do I need to do?  

If you are currently on ANR status and your gross annual income is more than $125,000, you can update your filing frequency through My DOR or by calling us at 360-705-6705. 

If you are not registered, you must complete a business license application.  

How do I report my income? 

You will need to add the Service and Other Activities classification when you electronically file your next excise tax return. To add the new classification: 

  1. Log in to My DOR. 
  2. On the My DOR Services page, click Get Started. 
  3. In the Excise Tax Return panel, click the File Return link. 
  4. Click the Add/Delete Tax Classifications button. Add the Service & Other Activities classification. Click Next. 

Note: The Service and Other Activities B&O tax classification has three tax rates. You will use your business’ taxable income from the prior calendar year to determine the applicable tax rate for your business. See our special notice on Service and Other Activities Rate Changes. 
 

Definitions 

Self-service storage facility means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to the space for the purpose of storing and removing personal property on a self-service basis, but does not include a garage or other storage area in a private residence. No occupant may use a self-service storage facility for residential purposes. (RCW 19.150.010) 
 

More information 

RCW 82.04.290 Tax on service and other activities.

Engrossed Senate Substitute Bill (ESSB) 5794 Chapter 423, Laws of 2025, (Sec. 301, Sec. 302). 

Self-service storage businesses industry guide.

Questions

Please visit dor.wa.gov or call 360-705-6705.