61 Pa. Code § 60.12 - Self-storage services
(a)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Administrative supplies-
(i) Tangible personal property which is
consumed in one of the following manners:
(A)
Used but not transferred by a vendor in the performance of this
service.
(B) Transferred by a
vendor to another party in connection with the performance of the vendor's
services when the property is not a critical element of the service.
(ii) Examples of the property
include sales invoices, receipts, contracts, estimate sheets, confirmations or
other similar items.
Commercial warehouse-A business, such as a public warehouse, engaged in the operation of receiving, handling and storing property for others and the purchaser of the service does not have separate access to the storage area used to hold the property.
Facility for goods distribution-A building which is used for the receiving, holding, handling and distribution of business inventory which is being held for subsequent sale.
Self-storage service-The providing of a building, a room in a building, or a secured area within a building primarily for the purpose of storing personal property with a separate access for each purchaser of self-storage service.
(b)
Scope. Effective January
1, 1992, the sale at retail or use of self-storage service at a location in
this Commonwealth is subject to tax.
(c)
Examples of taxable
services. The following are examples of taxable self-storage services:
(1) The rental of a garage on an annual basis
for the storage of a boat. If the boat is only kept in the garage for 5 months,
the rental is taxable because the primary purpose for the use of the garage is
storage of the boat.
(2) The rental
of an entire building by a contractor for the storage of construction equipment
and materials.
(3) The rental of
the basement in a building for the purpose of storing business property which
is not intended for sale, such as records storage, office equipment storage or
construction equipment storage.
(4)
The rental of an airplane hangar if the purchaser rents or leases the entire
building or a secured area within the building with separate access for each
purchaser.
(d)
Examples of services which are not self-storage services. The
following are examples of services which are not self-storage services:
(1) Rental of a safe deposit box from a
bank.
(2) Storage of property in
meat lockers, refrigerators or freezers.
(3) Storage of merchandise or commodities
which are intended for sale.
(4)
Rental of a locker in a train station.
(5) Storage of shoes for eventual
distribution to the purchaser's various retail stores.
(6) Security deposits charged and
subsequently returned to the purchaser by the provider of self-storage
services.
(7) Public parking
garages.
(8) Rental of a garage in
which one half of the area is used for administrative functions and the other
half is used for storage.
(9)
Rental of a shoe store in a mall and the area rented is primarily used for
storage of inventory.
(10) Monthly
rental amounts for an apartment which includes a separate detached storage area
are not taxable unless the charges for the apartment and storage area are
separately stated
(e)
Purchase price.
(1) The
total amount charged for providing self-storage services is subject to tax.
Charges associated with the cost of self-storage such as utilities, insurance,
pick-up, delivery, locks or keys are part of the taxable purchase
price.
(2) If the primary use of
the facility being rented is not for self-storage services, the providing of an
area for storage is not taxable unless there is a separate charge for the
storage area.
(f)
Exclusions.
(1) Self-storage
services are exempt if purchased by qualified charitable organizations,
volunteer fire companies, religious organizations and nonprofit educational
institutions, except if used in an unrelated trade or business. The services
are also exempt if purchased by the Federal government or its
instrumentalities; or the Commonwealth, its instrumentalities or subdivisions
including public school districts. The manufacturing, mining, processing,
public utility, farming, dairying, agriculture, horticulture or floriculture
exclusion does not apply.
(2) Safe
deposit boxes rented from financial institutions.
(3) Storage of property in refrigerator or
freezer units.
(4) Charges for the
storage of property in commercial warehouses.
(5) Rental or lease of a facility for goods
distribution.
(6) Rental of lockers
in airports, bus stations, museums or other public places.
(7) The vendor of self-storage services may
claim the resale exemption upon its purchase of tangible personal property
which is transferred to its purchaser or a third party in the performance of
its self-storage services. The vendor may also purchase self-storage services
from another provider which the vendor resells to its customer. The vendor may
not claim the resale exemption upon its purchase of administrative supplies or
the purchase of other taxable services which it may use in the performance of
its self-storage services.
(i) The following
are examples of property which may be purchased exempt for resale when used in
the performing of self-storage services:
(A)
The purchase of tangible personal property which is transferred to the
purchaser by the vendor such as storage racks, bins, covers, tarpaulins, pad
locks or keys. If the vendor charges the purchaser for the use of the property,
tax shall be charged by the vendor.
(B) The rental of a building for the primary
purpose of subleasing the building to another is not subject to tax. The
sublease of the building may be taxable depending on the use of the building by
the sublessee.
(ii) The
following are examples of property which is taxable when used in the performing
of self-storage services:
(A) The purchase of
materials, equipment or supplies used in the construction, reconstruction,
remodeling, repair or maintenance of buildings which are used in the
performance of self-storage services.
(B) The vendor's purchase of utilities used
in connection with the providing of self-storage services are subject to tax
unless the utilities are resold through separate meters. If utilities are
resold through a separate meter in the providing of self-storage services, the
vendor is required to collect the applicable tax.
(C) Administrative supplies.
(g)
Storage services.
(1) For
the period October 1, 1991, to December 31, 1991, the total charge for the
storage of tangible personal property within a building or similar structure is
subject to tax.
(2) The following
are examples of services which are taxable under this category:
(i) Storage of furs, jewelry and other
valuables.
(ii) Safe deposit
boxes.
(iii) Cold storage and
freezer lockers.
(iv) Storage of
raw materials, in-process materials and finished products.
(v) Storage lockers.
(vi) Storage of administrative records, such
as files, folders, computer tapes, microfilm, and the like.
(vii) Vehicle, boat and aircraft
storage.
(viii) Self-storage
facilities.
(ix) The lease of
buildings or portions of buildings for the predominant purpose of storage of
tangible personal property.
(3) The following are examples of services
which are not taxable under this category:
(i) Vehicle parking in a parking lot or an
unenclosed parking garage.
(ii)
Vehicle, boat or aircraft storage outside of a building or similar
structure.
(iii) Separately stated
charges for the performance of services other than storage, such as
distribution, handling, packaging, assembling, inventory control, quality
control, product "break bulk," "pick and pack," and the like which are
performed in connection with the storage of tangible personal
property.
Notes
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