With economists projecting a $1.7 billion deficit in the Michigan state budget for the fiscal year starting Oct. 1, Governor Jennifer Granholm is proposing to tax services in the state, including self-storage. Last week the Self Storage Association of Michigan and the national Self Storage Association participated in a meeting to discuss this potential threat to facility operators and their customers. The SSA is helping to fund lobbying efforts to oppose the measure.
Michigan storage operators dodged this legislative bullet in December 2007 when a law affecting a 6 percent sales tax on services was repealed only hours after it went into effect. Lawmakers instead adoped a 21.99 percent surcharge on the new business tax, which went into effect Jan. 1, 2008.