Spokane Could Tax Parking Lots 12% to Increase Development

A proposal before the city council would tax surface parking lots in an effort to boost infill development.

1 minute read

November 27, 2025, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Google street view of parking lot with cars in Spokane, Washington, Washington.

Google / Street View

The Spokane, Washington city council is on track to approve a 12 percent tax on parking lots, reports Emry Dinman in The Spokesman-Review.

“The Spokane City Council amended the law Monday to delay implementation to April, which also delayed a vote on the tax until next week because of the city’s rules on late amendments.” The tax is designed to encourage development on vacant lots and would help fund city projects.

According to Dinman, “The tax would hit hardest for surface lots like those owned by prolific operator Diamond Parking, though almost all commercial lots would be taxed to some extent. 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 has an accepted building permit with the city to imminently redevelop the lot into a residential or commercial building.”

The proposal includes exemptions for employee, residential, and student parking, as well as qualifying carpool, government workers, and drivers with disabilities. “On-street parking, which is operated by the city, would also be exempt.

Monday, November 17, 2025 in The Spokesman-Review

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