Why It Matters.Onerous taxation hinders expansion, investment and job creation. Increasing taxes/fees against parking businesses will not only slow growth, it will also increase the cost of doing business and decrease service sector jobs.
NPA supports tax policies that are fair, transparent, non-discriminatory and bi-partisan. NPA supports codes that ensure taxes are fairly distributed across all sources of tax collections and do not target a specific industry for an undue tax or fee burden. Tax levels should be set in a consistent manner across retail, real estate and transportation industries. Increasing effective tax/fee collection is a viable solution for government revenue gaps.
For too long the parking industry has been subjected to targeted tax increases to help close revenue gaps in local governments. Meanwhile, the ride share community has not experienced similar levels of taxation despite their heavy use of existing infrastructure.
We believe tax policy should be balanced and should not levy new, special taxes on any one industry.
Dramatic parking tax increases can kill the vitality of a downtown center and tourism. Higher prices will compel consumers, commuters and tourists to avoid downtown businesses and opt for less expensive suburban alternatives.
High parking taxes deter parking facilities development, causing parking shortages. When parking isn’t available, local businesses suffer. This results in consumer cost increases, reduced business tax revenues for government and even job losses.
Viable infrastructure must be supported with ridership usage fees and the federal gas tax. Increased taxes on the parking industry raise consumer costs while reducing their choices. This practice also makes cities a less convenient and less attractive destination to live, play, and work.
Only 12 of the 20,000 municipal governments across the country have subjected ride-hailing services to extra taxes or fees. Evidence shows that rideshare increases traffic congestion and wears down infrastructure.1 We must adopt a system of fair and balanced taxation.
Imagine paying close to 50% of your business revenues in taxes. In Philadelphia, the parking tax is 37.5%, not including any state, federal or real estate taxes. Add it all up and you are at 50% — or above. And, it’s not just Philadelphia. Chicago’s parking tax is 23%; San Francisco’s is 25% — and the list goes on. Industry-targeted taxes are unfair, inconsistent and stifle economic growth and job creation.
Reducing taxes is positive for growth. It is proven that American businesses will reinvest tax savings to reward employees and create more jobs. After the 2017 Tax Cuts & Jobs Act, over 500 businesses recorded increased investments in their business and workforce.
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