Self-Storage Associations Defeat Tax Bills

The national Self Storage Association (SSA) and the Virginia Self Storage Association (VASSA) successfully pushed back against legislation that would have imposed a 4% sales tax on self-storage rentals in Virginia.

House Bills 900 and 978, which sought to classify storage of tangible personal property as a taxable service, were heard Feb. 9 by the Virginia House of Delegates Finance Subcommittee No. 3.

VASSA President Jim Mertz, along with board members John Lugar and Jack Carvalho, testified in strong opposition to the bills’ inclusion of storage services. Mertz warned that adding a sales tax to monthly rentals would raise costs for consumers and could push customers to seek storage in neighboring states where no such tax exists. Lugar emphasized the essential role storage facilities play in supporting communities, noting the tax would disproportionately burden lower-income users. Carvalho added that self-storage often serves people during transitional or difficult life events, and an additional tax would only increase stress during already challenging times.

Following testimony from VASSA and other impacted industry groups, the subcommittee voted to halt both bills until 2027, preserving the option to revisit the concept in a future session. At that time, the measure could return in its current form, be revised, or reappear under new language. For now, it’s a win for Virginia self-storage operators.