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ECONOMIC CONSIDERATIONS FOR SALES TAX ON STORAGE <br />UNIT RENTAL AND OUTSIDE STORAGE SPACE RENTAL <br />Council should evaluate and consider applying the City of Louisville sales <br />tax, currently at 3 1/2%, to the rental revenue generated by the rental of <br />storage units (aka mini- storage) and to the rental revenue generated by the <br />rental of outside storage space (boatiRV storage, automobile storage and <br />similar storage spaces). <br />A conservative estimate of sales volume and revenue to the City is provided <br />below, based on conversations with local operators, some projections that <br />seem reasonable, and a blending of the information provided so that specific <br />operating data of any one business is protected. <br />Estimated total storage units in City of Louisville —640 <br />Average rental rate $85 per unit per month <br />Assumed vacancy rate at 12% <br />Estimated Outside storage units in Louisville <br />within one year <br />Average rental rate $50 per unit per month <br />Assumed vacancy rate at 15% <br />Annual Revenue $574,500 <br />—200 <br />Annual Revenue $85,000 <br />Sales tax revenue at 3 1/2 % on total revenue of $659,500 = $23,082 <br />information compiled and presented by Rob Lathrop, May 18, 2010 <br />10 <br />