Spokane Passes 12% Parking Tax

Spokane, Washington approved final changes to a new 12 percent parking tax, which will support public infrastructure and safety programs, report Emry Dinman and Garrett Cabeza in The Spokesman-Review.

According to the article, “Not everyone has to pay the tax: Qualifying carpools, government workers and drivers with disability placards would be exempt. On-street parking, which is operated by the city, would also not have to pay.” The law also exempts parking for students, employees, or residents.

The article adds, “Parking structures with at least two floors or underground lots would only have to charge customers half the tax rate, or 6%. Parking lots could also qualify for the lower rate if the owner is redeveloping the lot into a residential or commercial building.”

The city expects to bring in roughly $2 million per year from the new tax, revenue that must be used for transportation projects. “The tax wasn’t pitched as a new revenue stream, however, but as leverage to encourage redevelopment of surface parking lots, particularly when paired with a tax incentive the council approved in 2023. Parking occupies 30% of the land in the city’s core, which includes downtown, the University District, the Gonzaga University area and around the hospitals to the south.”