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Seattle Senator Introduces Commercial Parking Tax Compromise

This Washington   March 25, 2011 at 11:38 am Erica C. Barnett

In the wake of legislation yesterday that would give the University of Washington a 50 percent break on the city’s 12.5 percent commercial parking tax (and cap the tax, which Mayor Mike McGinn wants to increase, at its current level), state Sen. Scott White (D-46) has introduced legislation that would allow the city to charge a per-stall fee for every non-city-owned parking stall in the city, including those at the University of Washington.

The bill, which White’s office characterizes as a placeholder in anticipation of similar legislation in the future, would allow Seattle to impose a fee on every non-city-owned commercial parking stall in the city. The per-stall fee would apply not just to commercial (paid) parking lots but to free lots like those at Northgate. A per-stall fee would cost the UW less than the commercial parking tax, but would almost certainly be opposed by businesses whose parking is currently free.

Losing UW’s commercial parking tax revenue would cost the city approximately $3 million a year; the 50 percent tax break would cost the city around $1.5 million a year.


  • Pine Grove

    Key data point: The per-stall fee would apply not just to commercial (paid) parking lots but to free lots like those at Northgate.

    In all the discussion about raising the the parking meter rates and the tax on paid commercial parking, I recall that some business owners had complained that this just skewed things even more in favor of free commercial parking. Unintended consequence: in the process of taxing something we wanted to discourage, we ended up just encouraging its worst form. So it looks like Scott White is addressing this matter in a smart, equitable way.

    General observation from someone who doesn’t follow the state legislature all that closely. In a short amount of time, Sen. White has established himself as a Seattle progressive who actually introduces progressive legislation. Now, how much of that legislation is getting passed or how much it influences legislation that eventually does get passed, I don’t know. Again, I don’t follow Olympia so closely. I’d add that it sounds like White is not someone who’s getting on the soapbox to score political points at the peril of alienating his colleagues. Another plus.

  • http://profiles.google.com/zef.wagner Zef Wagner

    This is a great idea! Parking is pretty much always a rather inefficient waste of space, especially surface parking. This way there will always be a small cost to providing parking, which will encourage landowners to consider redevelopment of surface lots and might encourage businesses with free parking to start charging. I know some people think that would be terrible, but I think parking should always cost something.

  • http://profiles.google.com/zef.wagner Zef Wagner

    This is a great idea! Parking is pretty much always a rather inefficient waste of space, especially surface parking. This way there will always be a small cost to providing parking, which will encourage landowners to consider redevelopment of surface lots and might encourage businesses with free parking to start charging. I know some people think that would be terrible, but I think parking should always cost something.

  • Anonymous

    I can’t help but note that the retailers who provide “free” parking are mostly the large corporately owned ones. I’m sure they will put up a major, behind the scenes, lobbying campaign if White’s proposal or one similar gets serious consideration.

    Parking is never really free. The businesses who offer “free” parking are paying for its costs through building and maintaining their lots, or through paying rents to their (mall) landlords which cover these costs. The consumer pays for the cost this parking through the price of retail goods. In Seattle, this so-called “free” parking is unburdened by the commercial parking tax, though parking at a shopping mall is certainly “commercial” in nature.

    Retailers in Seattle’s neighborhoods and downtown do not have the option of providing untaxed parking by burying its cost in their retail prices. Even merchant validated parking (free to the customer) is hit with the commercial parking tax. When a customer in my neighbor pays to park in a private lot they are hit with sales tax (9.5%, I think) and the commercial parking tax (12.5%) as well as the cost of the parking itself. The taxes are not posted separately; the customer just sees a high total price to park.

    As currently structured, the higher the commercial parking tax rate goes, the more tax inequity will exist between mall/big box retailers and the retailers of the city’s business districts and downtown. If White’s proposal for a per stall parking tax replaced the current taxation method, this would remove the mall’s tax advantage and provide a level playing field for the many home grown retailers based in the city’s neighborhoods.

    Doug Campbell
    Bulldog News

  • http://manywordsforrain.blogspot.com/ Mr Baker

    It will be interesting to see how the city calculates a percentage of zero.

  • http://manywordsforrain.blogspot.com/ Mr Baker

    Btw, unless that tax money stayed on the north end the mayor and council will have a hard time staying elected.

  • http://manywordsforrain.blogspot.com/ Mr Baker

    Btw, unless that tax money stayed on the north end the mayor and council will have a hard time staying elected.

  • voter

    This is legislation that the Fremont and U-District Chambers should get behind. As Campbell says, it levels the playing field while also creating a more efficient parking regime for the city and state. Thanks to Sen. White for his leadership!

  • ivan

    Only in somebody’s hashish dreams does this bill have any chance to pass.

  • Anonymous

    If it takes ten years to educate the public on this issue so be it. Eventually, when people realize that they are seeing their neighborhood business districts stripped of retailers, they will demand a change. This is my hope, no hashish involved.

  • http://manywordsforrain.blogspot.com/ Mr Baker

    It is tragic that the businesses downtown do not have “free” parking to go with the multi-modal transportation system and all those sidewalks, tragic I tell ya.

    You get every other advantage, paid with my tax money, too.
    So, stfu.

  • http://spifflines.blogspot.com/ John Bailo

    Is a train station a “waste of space” when the train isn’t there?

  • http://spifflines.blogspot.com/ John Bailo

    Isn’t all the parking at U Village free?

  • http://spifflines.blogspot.com/ John Bailo

    I attended the symphony art Benaroya this week and paid $11 to park. This is about the maximum I would ever want to pay…and really $11 is way too much for night parking.

    I think the Symphony hurt itself by building in such a terrible location, and would have far more followers if they build a big complex somewhere outside of downtown with free parking.

    It should be a giant Music Mall with food, shopping, education, but in a nice sprawling setting.

  • http://spifflines.blogspot.com/ John Bailo

    Yes exactly…Southcenter is packed day and night and is completely private and has free parking.

    How long are taxpayers going to be bilked to provide crutches to a failed downtown built on the desires of anticar zealots rather than customers!

  • whine whine whine

    typical suburban whining — uses city and its subsidized downtown facility; pays $140 for dukes of dixieland tickets; pays $6 gas for the 20 miles each way. Uses the publicly subsidized parking garage under the sympohny. But fuck man charge him $11 for parking and OMG THE PARKING IS TOO DAMN HIGH! Typical suburban attitutde, feed off the city and whine for greater subsidies like a piggish dumkopf.

  • Guest

    To learn more about stall taxes as contrasted with commercial parking taxes, visit http://www.vtpi.org/seattle_parking_tax.pdf