The Cook County Board today approved an amendment that would lower the tax rate for many individuals who park in garages and lots.
Commissioners approved a 6 percent tax rate for daily parking and a 9 percent rate for weekly and monthly parking. This change is the result in a state law passed this year that allows Cook County to adopt a percentage-based rate, as opposed to a tiered tax structure.
“We have worked closely with everyone involved in this process to achieve a compromise that lowers rates for most residents while asking those who already pay higher amounts for parking to pay a little more,” Cook County Board President Preckwinkle said. “This simplified parking tax structure will boost compliance and make it easier for businesses and our administration to implement.”
Percentage-based taxing structures are becoming standard for local governments across the country, with other major metropolitan areas such as New York Philadelphia San Francisco and Pittsburg adopting them.
Exemptions for residents of a municipality of greater than 250,000 people will remain in place for those who pay $2.00 or less over a 24-hour period, $10.00 or less weekly and $40.00 or less monthly. Exemptions for residents of a municipality of 250,000 people or fewer will remain in place for those who pay $3.00 or less over a 24-hour period, $15.00 or less weekly and $60.00 or less monthly.
The County anticipates $42.6 million in revenue in 2013, which is unchanged from projections under the current tiered system. The new rates will take effect September 1.