Crystal Lake, IL, Tables Discussion Regarding 5% Self-Storage Rental TaxCrystal Lake, IL, Tables Discussion Regarding 5% Self-Storage Rental Tax

The Crystal Lake, Illinois, City Council tabled consideration of a 5% self-storage rental tax after receiving pushback from local facility owners. Mayor Haig Halebin contacted area operators about the decision, saying the city would notify them if the tax will be reconsidered in the future, according to a source.

The proposal was initially on the meeting agenda for Dec. 3 but was removed that evening. Earlier that day, Liberty Self Storage Owner Jack Schaffer and Hawthorn Storage Owner James Keelan sent a letter to the mayor and council, expressing concerns that the measure would be costly and challenging for businesses to collect, and that self-storage owners weren’t properly notified, the source reported.

“If they sat down with the industry, they probably would’ve drafted a better bill,” Schaffer said.

The proposal also mentioned calls to law enforcement from self-storage operations, which city representatives said can drain resources. In total, there are 10 existing or planned facilities in the area, with five reports of burglaries since 2020, the source reported.

“While each facility may implement safety precautions, calls for police assistance at self-storage facilities are typically more time-consuming than responses for most service businesses,” city staff said.

Related:Village of Lake in the Hills, IL, Considering a 5% Self-Storage Sales Tax

The proposed revenue measure was part of the draft budget because self-storage services aren’t subject to the traditional sales tax. It would’ve functioned like the 5% tax applied to area hotels and motels, with businesses collecting the funds from customers on behalf of the city. The revenue generated would’ve been directed toward capital improvements. City staff estimated that the charge could bring in approximately $150,000 annually. It’s unclear if the proposed tax will be reconsidered.

The decision about the proposed self-storage tax comes shortly after neighboring Lake in the Hills, Illinois, balked at a similar plan that was discussed last month. Another was proposed and vetoed by the Pekin, Illinois, City Council in June. A 5% tax on self-storage facilities has been implemented in nearby municipalities including Carpentersville, McHenry and Mundelein.

Source: Shaw Local, Crystal Lake Tables 5% Self-Storage Tax as Businesses Raise Objections