Washington’s self-storage industry is facing a major tax change. Effective April 1, 2026, income from self-service storage rentals will be subject to Washington’s business and occupation (B&O) tax under recently enacted legislation—marking a significant shift from the industry’s long-standing tax treatment in the state.

The change imposes new compliance and reporting requirements on storage facility owners and operators and will affect how these businesses handle tax planning and operational costs. The legislation has also sparked industry discussion about the legal and financial consequences of the new tax structure.

 Key Takeaways:

• Self-storage rental income will now be subject to the Washington B&O tax.
• The law changes how many facilities have historically been treated for tax purposes.
• Operators may need to revisit reporting practices and filing requirements ahead of the 2026 effective date.
• Industry groups are already evaluating potential legal challenges to the legislation and its application.

For a detailed analysis of the new law’s impact and actionable steps Washington self-storage operators can take now to prepare, read the full article here.