Today’s Headlines for Tuesday, December 11

  • Rahm Allies Block TIF Reform Vote That Could Stall Lincoln Yards (Block Club)
  • Men Charged With Street Racing, Reckless Homicide in Fatal Bartlett Crash (Sun-Times)
  • Baby Injured After 3 Vehicles, CTA Bus Struck During Police Chase (CBS)
  • Waukegan Police Stop Teen From Jumping in Front of Metra Train (Tribune)
  • Driver Charged After Crashing Into Suburban Bait Shop, Fleeing on Foot (CBS)
  • Frustrated BNSF Riders Air Complaints at Forum With Lipinski & Derwinski (Tribune)
  • MED Trains Were Delayed During Monday PM Rush Due to Downed Power Lines (ABC)
  • 4-to-3 Road Diet With Bike Lanes Proposed for Busse Road in Park Ridge (Tribune)
  • Tower With 193 Units, 156 Spots Proposed an 8-minute Walk From Morgan Stop (Curbed)
  • County Considers Raising Tax on Parking Apps From 1.75 percent to 6 percent (Politico)

Get national headlines at Streetsblog USA

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  • Guest

    County Considers Raising Tax on Parking Apps From 1.75 percent to 6 percent (Politico)

    A 350% tax hike for parking apps?

  • Tooscrapps

    The original was an incalculable hike. Whats your point?

  • planetshwoop

    It’s a bit of a sleight of hand, really. It’s not really equivalent to tax a service to find parking at the same rate as the parking itself (which is already charged). Do we charge Expedia/Orbitz at the same rate as we tax hotels? Probably not.

    But at some level, if spot hero et al lower the cost of parking in the city by marking it more efficient to find spaces (and thus encourage driving), it’s not terrible for the county.

    The real challenge to eliminating car usage is that the hit to govt revenues will be big. If you cut down on parking fees, the city will take a real hit.

  • Cameron

    Parking spaces should be taxed the same regardless of how the space was paid for. If ther county wants to raise the parking tax rate, raise the rate on all spaces, not just spaces booked using an app. Hotel rooms have the same tax whether they were booked booked through Orbitz or directly through the hotel.

    If the lot operator is still paying the tax on SpotHero reservations, then it seems odd to tax spot hero effectively taxing the same transaction twice. If the lot operators aren’t paying the tax on SpotHero reservations, then SpotHero should be taxed equivalent to what paying cash to park would be taxed.

  • planetshwoop

    I agree with you. Taxing twice at 6% seems odd. Taxing one at the standard rate and again at the sales tax seems reasonable.

  • Tooscrapps

    Yes. However, that 6% tax is based on the parking rate. So the $20 all-in a regular garage is:
    $1.13 tax
    $18.87 rate

    Now that $20 all-in for Spot Hero is (on their FAQ*):
    $4.16 fees to SH ($.99+ $20%)
    $.90 tax
    $14.94 rate

    I can see why the County would be concerned.

    *For event or hourly parking, SpotHero charges 20% on all reservations under $10. For reservations at or over $10, SpotHero charges the same 20% commission, plus $0.99.

  • Guest

    My point is that the County wants tom raise the parking app tax 350% – which is not the usual sort of tax increase you generally see.

  • Tooscrapps

    Yup, but since the 1.75% hadn’t gone into effect yet, I guess it’s still the same incalculable “increase”.

  • Austin Busch
  • planetshwoop

    This makes sense, and clarifies things really well. Thank you.

    I thought this might be the case but worded it poorly. Basically spot here lowers the cost of parking from the owner and eats the spread. (Cost to consumer is more or less the same.) So they are reducing the tax and taking some of that difference as their profit.

    This should totally be changed.