Sales tax applies to parking or providing parking space for motor vehicles, unless an exemption applies. A motor vehicle is a self-propelled vehicle, such as an automobile, truck, truck-tractor, or motorcycle, designed or used primarily for transporting persons or property on a highway.
The following explains tax treatment of parking and storage for different types of vehicles:
Providing parking space for aircraft is taxable. Parking includes occupying space in a hanger when an aircraft is available for use without requiring substantial expenditure of time or effort to make it operational. See the article titled "Aircraft Parking" for additional examples.
Docking or providing storage space, including winter storage, for boats is taxable.
Providing camper parking or storage is not taxable. This assumes the camper is not self-propelled. Vehicles that are not self-propelled do not meet the definition of "motor vehicle." However, admissions to campgrounds and recreational vehicles setup on campsites are taxable. See
Campgrounds, for more information.
Parking includes the temporary storage of a motor vehicle that is ready and available for immediate use. If the vehicle is not ready for immediate use (for example, it is damaged and cannot be driven), the charge for storing the vehicle is not taxable.
Providing parking for a self-propelled recreational vehicle is taxable. "Motor vehicle" includes a recreational vehicle that is self-propelled. Parking includes the temporary storage of a self-propelled recreational vehicle that is ready and available for immediate use.
A separate charge for parking, docking, or boat storage is taxable. Landlords who charge tenants higher rent for parking, docking, or boat storage, in comparison to those tenants who do not have parking, docking or boat storage privileges, are liable for tax on the amount attributable to parking.
Example: A landlord charges $750 per month for an apartment with one parking space included. If the renter does not want the parking space, the renter is charged $700 per month. The $50 difference in rent is the amount attributable to parking.
October 31, 2016