428.1 The sale of or charge for the service of the storage of household goods through renting or leasing space for self-storage, including rooms, compartments, lockers, containers, or outdoor space, except general merchandise warehousing and storage and coin-operated lockers, are subject to sales and use tax.

428.2 The total amount charged for providing service of the storage of household goods is subject to tax. Charges associated with the cost of service of the storage of household goods, such as utilities, insurance, pick-up, delivery, locks or keys, are part of the taxable purchase price. Charges that the facility incurs as a result of a tenant who fails to pay including, but not limited to, auction fees and cut-lock fees are not part of the taxable purchase price. A security deposit is not part of the taxable purchase price unless it is converted into a rental payment.

428.3 “Household goods” means tangible personal property, including goods and products, used within households. “Household goods” include, but are not limited to, consumer electronics, appliances, tools, housewares, and home furnishings.

428.4 The following are examples of taxable storage of household goods:

1. (a) Rental of storage lockers or storage units in apartment complexes if the locker or unit is utilized at the option of a tenant upon payment of a fee in addition to the apartment rental; and
2. (b) Rental of a storage unit for the purpose of storing household goods in which the consumer customarily stores and removes the consumer's household goods on a self-service basis.

428.5 The following are examples of services which are not taxable storage of household goods:

1. (a) General warehousing and storage, where the warehouse is engaged in the operation of receiving, handling, and storing property for others using the warehouse's staff and equipment, and does not allow the consumer of the service separate access to the storage area used to hold the property;
2. (b) Monthly rental amounts for indoor storage of a boat during the winter months.

SOURCE: Final Rulemaking published at 62 DCR 4890 (April 17, 2015).