Opinion ID: 1829624
Heading Depth: 2
Heading Rank: 1

Heading: The Definition of Public Storage Warehouse

Text: What are the identifiable and traceable elements of a public storage warehouse? The logical starting point for an answer to this question is with the two primary sources, the statute and the rule. Section 27-65-23 identifies miscellaneous businesses which are subject to sales tax. It reads, in its pertinent parts, as follows: Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to six percent (6%) of the gross income of the business, except as otherwise provided:       Public storage warehouses;       Rule Number 67 of the Sales and Use Tax Rules promulgated by the Mississippi State Tax Commission defines a storage warehouse as follows: RULE 67. Public Storage Warehouses. Storage Warehouses: A storage warehouse is a place where tangible personal property is kept and stored for a fee in the custody of a person operating a commercial business. The gross income received from such an activity is taxable at the regular retail rate of sales tax. Rental of Storage Facilities: Income derived from the rental of real property for the purposes of storing tangible personal property wherein the lessee has control of the facilities and the property stored is not subject to tax. Example: mini storage facilities. The first identifiable element of a public storage warehouse is found in the statute itself while the other four elements may be gleaned from the rule. (1) A public storage warehouse must be a place open to the public. (2) A public storage warehouse must be a place where tangible personal property is kept and stored. (3) A public storage warehouse must be a place where the tangible personal property is kept and stored for a fee. (4) A public storage warehouse must be a place where the property is kept and stored for a fee in the custody of a person operating a commercial business. (5) A public storage warehouse must be a place where the customer does not have control of the facilities and the stored property by the rental of real property. Thus, a public storage warehouse is a place where (1) the public (2) keeps and stores tangible personal property (3) for a fee (4) in the custody of a person operating a commercial business (5) where the customer does not have control, by rental of real property, of the facilities or the property stored therein.