Congressman Parker proposes bill to reduce city parking tax

Philadelphia has one of the highest parking tax rates among major cities in the country, but a new bill aims to reduce it by a third.

The bill introduced in the city council on Thursday will reduce the tax rate from 25% to 17% on July 1. The tax affects parking lots and garages.

Senator Cherelle Parker, the sponsor of the bill, said that reduced fees would benefit parking service employees and incentivize people to visit the city.

The purpose of lowering the tax rate is to allow some benefits to flow directly to parking workers, either by severing laid-off parking workers, or by increasing the wages and benefits of parking workers.” Parker said in a statement. He said: “I believe it is possible to become a person who is good for business and a person who is good for workers at the same time.”

Last June, due to budget shortages caused by the pandemic, the city council voted to increase the parking tax from 22.5% to 25%.It has also established a review committee to study the parking industry and develop stable work in response to report It is found that most parking workers live in poverty.

Philadelphia’s parking tax is currently more than 6% higher than other major cities in the Mid-Atlantic region. New York City There is a parking tax of 10.375% in places other than Manhattan, and the tax rate is 18.375%. Baltimore The parking tax is 20%. Washington state A tax of 18% is levied.

Parker said that tax cuts will only take effect if the review committee considers it beneficial to parking workers. Parker said that if the committee concludes that it will not help, she will drop the bill.

The parking facility is responsible for collecting taxes from customers and paying them to the city.

Due to the COVID-19 pandemic, parking tax revenue fell by 56% last year, from $74 million in 2019 to $32 million. Parker said that as the bill progresses next month, she will discuss the details of the budget.

She had previously reported to Strengthen the protection of parking workers, Requiring employers to keep employees full enough to ensure worker safety and provide evidence of dismissal of employees.

However, not everyone agrees to tax cuts.

Daniel Trubman of the city’s advocacy organization Fifth Square said the legislation violated the “Zero Vision” plan, the city’s initiative to eliminate traffic accidents. WHYY report. He said that lowering the parking tax will encourage driving and increase air pollution. He suspects that the owners of parking facilities will transfer the benefits to their employees.

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