Avalara Taxrates > Blog > Sales Tax Rate Changes > Pricier Parking in D.C. - Avalara

Pricier Parking in D.C.

  • Aug 17, 2015 | Gail Cole

 Will fewer commuters drive to D.C. once the parking tax rate increases?

Parking tax in the District of Columbia is conditionally scheduled to increase on October 1, 2017. Additionally, effective October 1, 2015, enforcement of parking meters in Premium Demand Parking Meter Rate Zones will be in effect between 7:00 a.m. and midnight.

Under Section 7051 of the Fiscal Year 2016 Budget Support Act of 2015, the D.C. parking tax will jump to 22% on October 1, 2017. It is currently 18%.

Parking tax rates in large metropolitan areas throughout the United States vary but tend to be higher than taxes on other goods and services. For example:

The concern has been raised that if/when parking rates in the District increase, the cost will be absorbed by parking operators rather than passed on to customers (who may be unwilling to pay more for their spot). No one wants to be the first lot with higher rates. This has troubled lot owners. Yet Mayor Muriel Bowser argues that the higher taxes are needed to subsidize the region’s public transit. She has pointed out that commuters will pay the bulk of parking taxes, not residents (Washington Post).

The rate increase is contingent on a 30-day review by the United States Congress and publication in the D.C. Register. Furthermore, it is dependent on certain of the District’s financial obligations. For additional information, please see sections 1004 and 7051 of the August 14, 2015 addition of the D.C. Register.

Simplify transaction tax management with automated sales tax Software-as-a-Service (SaaS). Learn how it works.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.