The South Dakota Legislature has established deadlines for business owners and customers to claim refunds for sales taxes improperly collected on self-storage unit rentals. The refunds are the result of a 2008 decision by the state Supreme Court declaring that self-storage is not subject to sales tax.
The deadline for customers to apply for tax refunds from self-storage businesses is Sept. 15, 2009. The deadline for business owners and taxpayers to apply to the Department of Revenue and Regulation is Oct. 1, 2009. Department officials have promised to advertise the availability of refunds along with the deadlines.
In December, the justices ruled 3-2 in favor of self-storage owners James Pirmantgen and Patricia Carlson, who own a facility in Sisseton. Gov. Mike Rounds in January asked the Legislature to pass a law overruling the decision. The Senate approved the governor’s legislation 18-17, but the House tax committee killed it on March 6 on a motion by House Democratic leader Bernie Hunhoff of Yankton.
The Revenue Department had been collecting tax on self-storage since 1995. Officials estimate an annual revenue loss of about $1 million.
Source: The Aberdeen American News, STATE: Legislature sets plan for storage-tax refunds