Can The RTA Impose A Parking Space Tax?

A meme is starting in the comments to a previous post on a parking space tax to the effect that the RTA already has the authority to impose such a tax. This is based on the recent testimony (pg. 3) of Peter Skosey of the Metropolitan Planning Council that the "RTA has long had the authorization to levy a property tax on commercial parking spaces in the region."

Hold on to your shorts. It appears that Skosey misspoke. The RTA cannot currently impose a parking tax and the parking tax referenced in the RTA Act is not the kind of broad-based tax on non-residential parking spaces that will do the most good from a transit/land use perspective.

Section 4.03(d) of the current RTA Act provides in relevant part as follows:

(d) The Board may impose a motor vehicle parking tax upon the privilege of parking motor vehicles at off‑street parking facilities in the metropolitan region at which a fee is charged, and may provide for reasonable classifications in and exemptions to the tax, for administration and enforcement thereof and for civil penalties and refunds thereunder and may provide criminal penalties thereunder, the maximum penalties not to exceed the maximum criminal penalties provided in the Retailers' Occupation Tax Act.
. . .

As used in this paragraph, the term "parking facility" means a parking area or structure having parking spaces for more than 2 vehicles at which motor vehicles are permitted to park in return for an hourly, daily, or other periodic fee, whether publicly or privately owned, but does not include parking spaces on a public street, the use of which is regulated by parking meters.

First, this provision appears to authorize only a tax on paid parking ("motor vehicle parking tax upon the privilege of parking"), such as the per parking transaction tax already imposed by the City of Chicago. As outlined in the previous post, this kind of tax is much less beneficial than a tax on all non-residential parking spaces, regardless of whether parking fees are charged.

Second, the RTA Act forbids the RTA from imposing the parking tax set out in section 4.03(d). This is because the RTA has imposed its sales tax pursuant to sections 4.03(e) - 4.03(g). Section 4.03(p) of the Act provides as follows:

(p) At no time shall a public transportation tax or motor vehicle parking tax authorized under paragraphs (b), (c) and (d) of this Section be in effect at the same time as any retailers' occupation, use or service occupation tax authorized under paragraphs (e), (f) and (g) of this Section is in effect.

In other words, having imposed the sales tax pursuant to 4.03(e) - 4.03(g) the RTA cannot impose the parking tax provided for in section 4.03(d) or, for that matter, a tax of up 5 percent of the gross receipts from the sale of fuel (4.03(b)).

4.03(p) goes on the provide that once the RTA has opted to adopt a sales tax, it lacks the power to switch back to a parking tax and/or fuel tax:

(p) At no time shall a public transportation tax or motor vehicle parking tax authorized under paragraphs (b), (c) and (d) of this Section be in effect at the same time as any retailers' occupation, use or service occupation tax authorized under paragraphs (e), (f) and (g) of this Section is in effect.

In other words, having imposed its sales tax the RTA cannot now add on a parking (or fuel) tax. Section 4.03(p) goes on to forbid the RTA from switching from a sales tax to parking and fuel taxes:

Once any tax authorized by paragraphs (e), (f) or (g) is imposed the Board may not reimpose taxes as authorized in paragraphs (b), (c) and (d) of the Section unless any tax authorized by paragraphs (e), (f) or (g) of this Section becomes ineffective by means other than an ordinance of the Board.

It would be easy to draft an amendment to the RTA Act to allow the imposition of a tax on all non-residential parking spaces even with the sales tax in place. Proponents of SB 572 seem unwilling to consider such an alternative, unfortunately.