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Why It Matters.Unlicensed operators take business away from legitimate operators, compromise driver well-being, and lessen much-needed tax revenue from localities. These rogue operators are unregulated and impose a threat to safety, security and the integrity of the parking industry.
NPA's Position
NPA supports a parking system that protects the rights of drivers and legitimate parking operators, as well as municipal efforts to collect existing taxes and fees. Effective collection allows the law to work as intended. NPA also supports audits of business to collect uncollected taxes from those not paying their fair share.
Further, NPA is in favor of technology enabled methodologies that would encourage reporting and payment of taxes and fees to ensure compliance with the law.
Background
Unlicensed pop-up parking lots are most prevalent around concert venues, stadiums, airports, and other high-volume places/events. Oftentimes, law enforcement is not equipped with the tools and resources to find and shut down illegal lots at these venues.
Talking Points
There must be a level and legal playing field within the parking sector. Unlicensed businesses should be closed.
Unlicensed parking operations drain profit from legitimate operators. Less profit means less resources invested back into business operations and workforce expansion.
Unregulated operations compromise driver safety and security. Inconsistent business practices, confusion due to poor signage and broken ticketing machines often lead to driver exploitation.
Unlicensed parking operators don’t pay taxes and are an unchecked drain on local infrastructure. They hurt the localities in which they illegally operate and hinder their efforts to maintain and invest in current and future infrastructure projects.
Legitimate, law-abiding operators pay their fair share of taxes, plus support state and local infrastructure. But unfortunately, they often find themselves subject to tax increases because of rogue operators.
Local governments must pursue equitable collection policies evenly applied across the business community instead of penalizing legitimate businesses.
Strengthening enforcement will help to fund much-needed infrastructure. Parking taxes can be fairly collected under current law though more aggressive policing of unlicensed businesses, and auditing to assure proper assessment and collection of taxes from licensed businesses.
Policies that strengthen partnerships with elected officials, law enforcement and regulators will help to combat this national problem.
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