Since the recent South Dakota Supreme Court decision that self-storage units for rent aren't subject to the state sales tax, the door could be open for self-storage operators in the state to seek tax refunds.

Last month, the high court last month ruled that self-storage owners James Pirmantgen and Patricia Carlson of Sisseton, S.D., shouldn't have to pay state sales tax on their 32-unit facility because the rental of self-storage space is not a service subject to taxation. The couple's lawyer, Gordon Nielsen, said he expects his clients will file for a return of overpaid taxes.

David Wiest, deputy secretary for the South Dakota Department of Revenue and Regulation, said the department plans to introduce legislation asking state lawmakers to clarify the issue on mini-warehouse and self-storage units. The statuatory period for recoveries is three years.

South Dakota has a 4 percent sales tax. In Sioux Falls, self-storage owners pay extra because until Jan. 1, 2009, the city also had a 1.92 percent sales tax, which just increased to 2 percent.

Source: ArgusLeader.com, Court Decision Could Bring Some Tax Refunds