You can’t be faulted for wanting as much information as possible about your upcoming move. After all, a relocation is no easy feat. You need to research moving companies, pack your belongings, and set up utilities, among a series of other tasks. Knowing whether sales tax will be added to your moving costs can help when attempting to accurately budget your move.
In most states, moving services for local, interstate, and local relocations are exempt from sales tax. These services include anything that’s not accompanied by the transfer of tangible personal property, such as packing, loading, and unloading. However, there a few exceptions. For instance, Iowa imposes a tax on “house and building” moving services, as do Mississippi and Wyoming, but only for local moves. And West Virginia subjects all residential moving services to a sales tax.
As for supplies like boxes and crates purchased from a moving company, most states charge a sales tax.
What About Storage Service?
If your final destination is not in move-in ready and you need to store your items for more than 30 days, you won’t need to pay a sales tax. Again, there are some exceptions. Florida imposes a tax on self-storage units, while New York does not, but it does impose a tax on the service of providing storage space.
Likewise, Iowa taxes self-storage units unless they are lockers or units at apartment complexes for tenants to use. Louisiana charges a sales tax based on what is being stored. For example, the state specifies that the storage of cars, clothing, furs, or rugs are taxable.
If you would like more information like this to help make your move a manageable prospect, contact Atlantic Relocations Systems, a leading national provider of moving and storage services. One of our knowledgeable representatives will be happy to answer any questions you may have about relocations, including which one of our services may qualify as tax deductible.