City Council To Vote On Emanuel's Parking Tax Proposal
By Chuck Sudo in News on Apr 9, 2013 3:00PM
The City Council Finance Committee approved an Emanuel administration proposal to change the city’s parking tax from its current sliding scale system to a flat tax Monday. If the proposal is approved by the full City Council at Wednesday’s meeting, the tax would go into effect in July.
Motorists currently pay a tax of $5 on parking fees of $12 or more under the current sliding scale structure (per the Sun-Times) including the more expensive valet parking options available downtown. The Emanuel proposal would place a 20 percent tax on weekday parking and 18 percent on weekends. Motorists who pay more than $25 on weekdays, $125 weekly or $600 monthly for parking can expect a hefty increase in parking taxes. According to City Budget Director Alexandra Holt, motorists who pay a $12 early-bird parking rate would actually see their parking tax decrease, from $5 to $2.40.
“The idea behind this structure is… to make it easier to administer, but also to more fairly distribute that tax based on what people are paying. If you’ve got a premium service, you will pay more. If you’re paying an economy rate, you will actually pay less,” Holt said, noting that 50 percent of Chicago parkers pay $12 or less. “[Hotel] garage rates tend to be $50 and up. As a result of the percentage-based tax, those parkers will pay more. Currently you’re paying less than your share of the tax and the economy parker is paying more. This percentage-based fee evens that out.”
The proposal, if approved, would put Chicago’s parking tax in line with other major American cities and keep Chicago on track for the projected $122 million in parking revenues outlined in the mayor’s 2013 budget, according to Holt. But it faces opposition from the hotel lobby, who fear the tax would affect their future bookings. Illinois Hotel and Lodging Association CEO Marc Gordon told the Sun-Times 18 percent of people who stay in downtown hotels drive to the city and park overnight, and would wind up paying up to $10 in taxes on the higher end valet charges.
The proposal is also being questioned by Ald. Walter Burnett (27th) who noted downtown hotels saw an increase in occupancies in March and, “We want to make sure we keep it that way.” Ald. Jason Ervin (28th) scoffed at concern over the proposal and noted that some hotel rooms near Midway Airport cost as much as the parking at downtown hotels.