NCSSA Legislative Alert!

 Please donate to the NCSSA Legislative Fund, click here for information on how you can help fight the Sales Tax Assessment!

The North Carolina Self Storage Association wants to make you aware that a potential 4% Sales Tax assessment on self storage is being considered in the North Carolina Senate.  How does this affect you as a Storage Facility Owner/Operator?

  • With the current economic decline, occupancy rates tumbling and rental rates stagnant, the last thing our elected officials should do is place an additional tax on an already economically stressed client base.
  • Secondly, it will be incumbent on you, the owner/operator, to inform your current customers of this additional tax that will be interpreted by our clients as a rate increase.
  • Additionally you will incur the entire expense of notifying your customer base of this new tax.  This is inclusive of any codicil within the lease/rental agreement you are using.  For example: postage, letterhead, certified mail and lost time of owners, operators and employees attempting to contact customers.
  • With this new tax you, the owner/operator, will pay additional expenses for the collecting, reporting and accounting of potentially thousands of dollars of money that will be ultimately remitted to the state coffers and will reap no benefit from any reduced local or state property taxes.

The NCSSA vehemently opposes any bill drafting or legislative action regarding this matter.

This information has been brought to the attention of the Executive Board of the NCSSA and me through the tireless efforts of McGuireWoods Consulting.  This brief memo is being distributed to both NCSSA members and non-members in effort to inform and educate our peers in Legislative matters that will ultimately affect our industry.  As more information becomes available we will disseminated it as quickly as possible. 

In closing, if you are not a member of the NCSSA, we encourage you to visit our Web site at www.ncssaonline.org for information on joining, or contact the NCSSA office at 919.459.2074.

Dear Self Storage Owner/Operators:

The NCSSA has undertaken the task of trying to STOP Sales Tax on Self Storage in North Carolina.   As most of you probably know, the NC Senate is trying to introduce a financial plan that would tax self storage rentals at 4%.  We have hired a public relations firm, McGuireWoods Consulting, to help with this process.

Why is taxing Self Storage damaging:

  1. No other sectors of rental real estate are taxed. How is storage different than apartments, offices or rental Homes?;
  2. 34% of self storage tenants nationally have household incomes of less than $30,000;
  3. 21% are widowed or divorced;
  4. 90% of self storage operators are small business owners; and
  5. It recollects sales tax over and over again on same item.

Why should sales tax matter to you?

  1. It will become your responsibility to collect and pay the tax to the State, resulting in an extra cost for employees and accountant;
  2. It will be your responsibility to notify all your tenants of the sales tax, causing higher costs for postage and handling; and
  3. It lowers the value of your real estate by adding an extra expense.

We have two choices when it comes to the state sales tax: fight it or lie down and accept it. The NCSSA will fight the sales tax with all of our resources.  Unfortunately, resources are limited and we ask for your help.  Please help the NCSSA with any monetary donation possible.

If you are not a member of the NCSSA, we urge you to join.  With today’s challenging economy, this is the ideal opportunity for you to join the association that represents self storage professionals in North Carolina.  The NCSSA is an association whose primary goal is to provide leadership and open lines of communication on issues that affect the self storage industry in our state.  In today's marketplace, it is essential for operators to stay informed of the many changes and laws affecting, or that have the chance to affect, our business industry.  For information on joining, contact the NCSSA office at 919.459.2074 or via email at info@ncssaonline.org.

Sincerely,

Bobby Mann

Bobby Mann
President NCSSA 2009

 

North Carolina Self Storage Association 2501 Aerial Center Parkway, Ste. 103 Morrisville, NC 27560 Ph. 919.459.2074