Bill Aims To Tax Storage Unit Rentals In WA

A bill that's currently under consideration in the Washington House of Representatives is looking to tax storage units in the state.

House Bill 1907 (HB-1907) would change current laws that treat storage unit rentals like agreements between landlords and tenants and instead define them as retail transactions which are subject to Washington's primary business tax and sales-and-use tax.

The bill calls for storage unit renters to pay both state and local sales tax whenever they make a payment for the renting of a storage unit.

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Supporters of the legislation claim it would bring in nearly $58 million in revenue over the next biennium, and up to $90 million during the following two-year budget cycle, not including revenues for local governments.

The proceeds from HB-1907 would be directed towards affordable housing programs in the state, but the bill's language doesn't mandate that the money be used in such a way.

It's estimated that there are approximately 46 million square feet of rental store unit space in the state, which opponents of the measure say is largely used by low-income renters, members of the military, and people who are facing difficult circumstances - including homelessness, who would all be facing increased prices if the bill is passed.

Among the supporters of HB-1907 is the Association of Washington Cities, which has recently been under pressure to increase the use of urban lands in the state to expand housing opportunities.

The bill was introduced by 21st District Rep. Strom Peterson (D-Edmonds) and has six co-sponsors, all of whom are Democrats.

HB-1907 had its first reading on Feb. 10 and received a public hearing in the House Committee on Finance yesterday.