S2628 has passed and will go in to effect on October 1, 2006
The rate of sales tax to be charged by the Self Storage facility is 7 percent
S2628 Modernizes the sales and use tax. Kenny, Bernard F.as Primary Sponsor
The bill extends the sales tax to charges for the following services:
furnishing of space for storage, such as charges for self-storage rentals;
courier and messenger services;
tanning services;
massage services, exempting medically prescribed services;
tattooing and permanent body art;
initiation fees, membership fees or dues for access to or use of the property or facilities of a health and fitness, athletic or sporting club or organization, except for membership in a club or organization whose members are predominantly age 18 or under;
air commerce or air transportation which originates and terminates in this State;
limousine services originating in this State, except as provided in connection with funeral services; and
the issuance of a surety bond for the purpose of bail.
The bill also includes a provision that clarifies the sales and use tax collection responsibility of a corporation that does not maintain a place of business in New Jersey but, through another corporation that is related through common ownership, conducts business activity in New Jersey through the actions of the related New Jersey agent corporation in furtherance of common marketing, promotion, selling or service activity.
The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 2628, with committee amendments.
This bill extends the sales and use tax base, encompassing product categories that have come into being with new technologies, limiting some exclusions from taxation, and extending the tax to new services.
New Jersey Statutes
TITLE 2A ADMINISTRATION OF CIVIL AND CRIMINAL JUSTICE
Short title
This act shall be known and may be cited as the
"Self-Service Storage Facility Act."
Title 2A, §2A:44-187.
Definitions
As used in this act:
"Last known address" means that address
provided by the occupant in the latest rental agreement,
or the address provided by the occupant in a subsequent
written notice of a change of address.
"Occupant" means a person, the person's
sublessee, successor, or assignee, entitled to the use of
the storage space at a self-service storage facility
under a rental agreement, to the exclusion of others.
"Owner" means the proprietor, operator, lessor,
or sublessor of a self-service storage facility, the
owner's agent, or any other person authorized by the
owner to manage the facility, or to receive rent from an
occupant under a rental agreement.
"Personal property" means movable property not
affixed to land, and includes, but is not limited to,
goods, merchandise, and household items.
"Rental agreement" means any written agreement
or lease, that establishes or modifies the terms,
conditions, rules or any other provisions concerning the
use and occupancy of a self-service storage facility.
"Self-service storage facility" means any real
property designed and used for the purpose of renting or
leasing individual storage space to occupants who are to
have access for the purpose of storing and removing
personal property. No occupant shall use a self-service
storage facility for residential purposes. A self-service
storage facility is not a warehouse as used in chapter 7
of Title 12A of the New Jersey Statutes.
Title 2A, §2A:44-188.
Lien on personal property; priority
Except as specified in this subsection, the owner of a
self-service storage facility or the owner's heirs,
successors or assigns shall have a lien upon all personal
property located at a self-service storage facility for
rent, labor, or other reasonable charges due as specified
in the rental agreement in relation to the personal
property, and for expenses necessary for its
preservation, or expenses reasonably incurred in its sale
under this act. The lien provided for in this section is
superior to any other lien or security interest except
those prior liens established pursuant to N.J.S.
2A:37-20, sections 3 and 12 of P.L.1966, c. 30 (C.
54:32B-3, C. 54:32B-12) and R.S. 54:35-19 and those as to
which the occupant has notified the owner in writing. The
lien attaches as of the date the personal property is
brought to the self-service storage facility.
Title 2A, §2A:44-189.
Issuance of warehouse receipt, bill of lading, or other
document of title; application of act.
If an owner issues a warehouse receipt, a bill of lading,
or other document of title for the personal property
stored at the self-service storage facility, the owner
and the occupant shall be subject to the provisions of
chapter 7 of Title 12A of the New Jersey Statutes and the
provisions of this act shall not apply.
Title 2A, §2A:44-190.
Satisfaction of lien
An owner's lien for a claim which is more than 30 days
overdue may be satisfied as follows:
a. The occupant and the Division of Taxation in the
Department of the Treasury shall be notified;
b. The notice shall be delivered in person or sent by
certified mail to the last known address of the occupant;
c. The notice shall include:
(1) An itemized statement of the owner's claim showing
the sum due at the time of the notice and the date when
the sum became due;
(2) A brief and general description of the personal
property subject to the lien. The description shall be
reasonably adequate to permit the person notified to
identify it, except that any container including, but not
limited to a trunk, valise, or box that is locked,
fastened, sealed, or tied in a manner which deters
immediate access to its contents may be described without
listing its contents;
(3) A notice of denial of access to the personal
property, if this denial is permitted under the terms of
the rental agreement, which provides the name, street
address, and telephone number of the owner, or the
owner's designated agent, whom the occupant may contact
to respond to this notice;
(4) A demand for payment within a specified time not less
than 14 days after delivery of the notice; and
(5) A conspicuous statement that unless the claim is paid
within the time stated in the notice, the personal
property will be advertised for sale. The notice shall
specify time and place of the sale;
d. Any notice made pursuant to this section shall be
presumed delivered when it is deposited with the United
States Postal Service, and properly addressed with
postage prepaid;
e. After the expiration of the time given in the notice,
an advertisement of the sale shall be published once a
week for two consecutive weeks in a newspaper of general
circulation where the self-service storage facility is
located. The advertisement shall include:
(1) A brief and general description of the personal
property reasonably adequate to permit its identification
as provided for in subsection c. (2) of this section;
(2) The address of the self-service storage facility and
the number, if any, of the space where the personal
property is located and the name of the occupant; and
(3) The time, place, and manner of the sale. The sale
shall take place not sooner than 15 days after the final
publication. If there is no newspaper of general
circulation where the self-service storage facility is
located, the advertisement shall be posted at least 10
days before the date of sale in not less than six
conspicuous places in the neighborhood where the
self-service storage facility is located;
f. A sale of the personal property shall conform to the
terms of the notification;
g. A sale of the personal property shall be public and
shall be held at the self-service storage facility, or at
the nearest suitable place to where the personal property
is held or stored;
h. Before a sale of personal property the occupant may
pay the amount necessary to satisfy the lien, and the
reasonable expenses incurred by the owner to redeem the
personal property. Upon receipt of this payment, the
owner shall return the personal property, and the owner
shall have no liability to any person with respect to the
personal property;
i. A purchaser in good faith of the personal property
sold to satisfy a lien, as provided for in section 3 of
this act, takes the property free of any rights of
persons against whom the lien is valid, despite
noncompliance by the owner with the requirements of this
section; and
j. The owner may satisfy his lien from the proceeds of
the sale, but shall deposit the balance, if any, in an
interest-bearing account with notice given to the
occupant of the amount and place of the deposit and of
his right to secure the funds.
Title 2A, §2A:44-191.
Existing rental agreements; validity and enforcement
All rental agreements entered into before, and not
extended or renewed after, the enactment of this act,
shall remain valid, and may be enforced or terminated in
accordance with their terms or as permitted by any other
law of this State.
Title 2A, §2A:44-192.
DISCLAIMER: Please Note: With respect
to the documents available from this site or server,
neither myself nor any employees, makes any warranty,
express or implied, including the warranties of
merchantability and fitness for a particular purpose, or
assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information,
apparatus, product, or process disclosed, or represents
that its use would not infringe privately-owned rights.
This information is provided for informational purposes
only. Please seek legal counsel for help on
interpretation of individual statutes.
Contact Ron VanVarden
Member
Self Storage Association
California Self Storage Association (Central Valley Territory Leader)