Batavia’s Committee of the Whole recently discussed a potential tax on self-storage rentals, aiming to limit their spread — particularly in commercial corridors — and generate more city revenue.

Some officials expressed concerns that self-storage facilities provide little economic value compared to retail businesses, while others questioned the proposed tax’s effectiveness as a tool to minimize spread.

Key points

• Tax as a deterrent: The proposal seeks to discourage self-storage growth in high-traffic commercial areas, as these facilities do not generate sales tax and are not typically considered a productive use of land.

• Neighboring towns' policies: Carpentersville is the only municipality in Kane County with such a tax, though other cities like Plainfield and Romeoville have implemented similar measures.

• Effectiveness debated: Officials questioned whether the tax would truly limit self-storage expansion. Some noted that once built, storage facilities are rarely repurposed for other uses.

• Revenue considerations: With Batavia facing budget gaps, some officials viewed the tax as a way to recoup lost sales tax revenue from retail properties converted into storage. Others were cautious about introducing new taxes without clearer long-term benefits.

According to Alderman Dustin Pieper’s newsletter, one official suggested, “A blanket tax might discourage hybrid developments, such as the Tesla dealership/self storage facility that is going into the old Sam’s Club, which had otherwise been left vacant for many years.”

City staff will continue researching the policy before bringing the issue back for further discussion.

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