Pekin, IL, City Council Vetoes 5% Sales Tax on Self-Storage Rentals

A proposal by the Pekin, Illinois, city staff to add a 5% sales tax on self-storage rentals was shot down by councilmembers this week. A motion on the measure wasn’t seconded, so the council didn’t discuss it or take a vote, according to the source.

Pekin Economic Development Director Josh Wray proposed the tax as a way to bring in new revenue to the city. “While self-storage units are a necessary service to the community, they are very low use compared to other commercial uses,” Wray said. “Staff is proposing a self-storage unit tax to help recover the opportunity cost from using commercial land for storage.”

Two Pekin self-storage owners addressed the council during the public hearing to voice their opposition to the tax.

“If you pass this tax, I will fight it with everything I have. I'm already paying $100,000 in property taxes. Now you want to tax my rent rolls?” said Rick Evans, who owns Koch Street Mini-Storage with his wife, Diane. “You must think we make a lot of money in the self-storage business. Do you know how hard it is to start a business? It's not fun. I've worked hard for 20 years to keep my business going.”

Jacob Force, owner of Force Storage, reminded council members that many self-storage facilities in the city are locally owned.

Source: WCBU, Pekin City Council Shuts the Door on Proposal to Tax Self-Storage Unit Leases