SPOKANE, Wash. — Parking in Spokane could become more expensive as the City Council considers implementing a 12% tax on commercial parking lots. Funds generated from the tax would only go towards transportation and safety improvements across the city. City officials hope the tax will motivate better land use downtown and the conversion of parking lots into residential or commercial developments.
The new parking tax would function similarly to a sales tax, meaning consumers would pay the fee rather than lot owners. If approved, the tax would become effective January 1 of next year.
The measure imposes a 12% tax on parking transactions from commercial lots. It also applies a 6% tax on lots with two or more floors, lots that are below ground level, or lots where the property owner obtained a building permit for residential or commercial development before the ordinance takes effect.
According to city data, approximately 30% of downtown Spokane is devoted to parking facilities. The city faces a budget deficit of $13 million, and the 12% parking tax would offer a new stream of revenue. However, state law requires funds to only go towards transportation purposes.
Business leaders express concern about the proposal’s impact on downtown recovery efforts.
“Will this be another barrier for people to come back to downtown at a time we need them more than ever?” said Emilie Cameron, president of the Downtown Spokane Partnership.
Cameron says businesses were surprised this plan is being considered and that downtown still faces challenges despite progress since the pandemic.
“They want to be optimistic but things are still really hard and they need help in order to continue to make their businesses thrive,” Cameron said.
However, the proposal has supporters who argue the tax is necessary.
“I think the parking tax is much overdue. Spokane is one of the few large cities in the state that doesn’t have a tax like this,” said Erik Lowe, who supports the tax increase.
Lowe argues too much space in Spokane is devoted to commercial parking lots.
“These surface parking lots are a blight on our city,” Lowe said.
City officials hope the tax could encourage redevelopment of lots into housing or commercial developments, though Cameron disagrees with the approach.
“We do want to see that. But adding a parking tax is not the way to get there,” Cameron said.
The proposal will be discussed in next week’s city council meeting.
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