Seattle budget proposal would hike parking tax for commercial lots to 17%

(Image: r/seattle)

Drivers will pay steeper fees to leave cars in private lots and garages under a budget proposal to raise the city’s Commercial Parking Tax to help close City Hall’s budget shortfall.

The proposal would lift the tax from 14.5% to 17% in 2027, generating an extra $9.3 million annually. Because commercial parking is also subject to state and local retail sales taxes, the change pushes the total tax on paid stalls to 27.55%, adding roughly $5.50 in total taxes to a $20 parking charge.

The proposal is part of Mayor Katie Wilson’s plan to wipe out a $175 million deficit without tax increases or withdrawals from city reserves and now on the table as the Seattle City Council works to approve the city’s 2027-2028 budget over the coming weeks.

With the city confronting a general fund deficit, adopting the commercial parking tax increase allows lawmakers to shore up essential street maintenance and safety programs without diverting scarce general funds, leaning on parking revenue to patch the city’s balance sheet even as downtown businesses warn of the added cost on visitors.

Under the current 14.5% rate, Seattle collects approximately $50 million to $54 million per year from the Commercial Parking Tax from an estimated 400 to 600 commercial parking facilities with taxpayers concentrated among a much smaller group of management entities.

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