Downtown Louisville parking fees to increase due to new sales tax
LOUISVILLE, Ky. (WAVE) - Street parking and parking in city garages will be more expensive next year after the Parking Authority of River City announced price increases starting Jan. 1, 2023.
PARC said the change is the first increase in parking rates since 2018, according to a release.
The increase is due to a new state parking sales tax being implemented starting next year in addition to revenue declines related to the pandemic, PARC said.
The Kentucky General Assembly approved House Bill 8, which now requires sales tax to be collected on parking fees. The six percent tax will be applied to all parking services provided by PARC, including surface lots, garages and parking meters.
PARC said the expected annual budget impact due to the tax is $1 million.
“PARC cannot absorb the increased expense incurred by the new sales tax,” PARC director Mike Tudor said in a release. “Our organization is completely self-funded, and 100 percent of our revenues are reinvested back into our parking structures and services. In order to stay that way over the long term, we must raise our hourly, daily and monthly parking rates. A rate increase is something that we have considered and needed for a while; however, we held off during the COVID-19 pandemic to support businesses, particularly those downtown.”
Tudor said the rate increase will allow PARC to cover annual capital expenses and infrastructure improvements.
“The funding from this increase will help us ensure that our parking garages are safe, clean and well-maintained,” Tudor said.
The new rates are listed below:
Monthly Unreserved Parking
- Current Average Rate - $96.07
- New Average Rate (effective January 1) - $107.14
Monthly Reserved Parking
- Current Average Rate - $115.83
- New Average Rate (effective January 1) - $133.38
Transient Hourly Parking
- Current Average Rate - $2.00
- New Average Rate (effective January 1) - $3.00
Transient All-Day Parking
- Current Average Rate - $20.00
- New Average Rate (effective January 1) - $22.00
On-Street Meter Parking (first 2 hours)
- Current Average Rate - $2.00/hour
- New Average Rate (effective January 1) - $2.25/hour
On-Street Meter Parking (after first 2 hours)
- Current Average Rate - $3.00/hour
- New Average Rate (effective January 1) - $3.35/hour
Parking in PARC garages will remain $1 for the first 30 minutes, and the organization will not extend paid parking hours on the street, the release states. Drivers will still be able to park on the street for free after 6 p.m., and parking will remain free on Sundays.
PARC said it plans to offset increases by offering discounted daily parking in its garages online through its PARC Day Pass website. Discounts of up to half off the daily parking rate will be available, encouraging drivers to book their parking space before heading downtown.
Free on-street parking will also be offered on Small Business Saturday, Nov. 26, to encourage visitors to celebrate the holiday season at local stores and restaurants.
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