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Parking operators, hotels and markets tell commission high taxes and fees forced closures and higher prices
Summary
Center‑city parking operators testified that layered city taxes (including parking tax, real‑estate and use‑and‑occupancy levies) consume large shares of revenue—operators cited totals up to ~67%—leading to facility closures, higher rates for workers and customers, and requests for use‑and‑occupancy relief or rate restructuring.
Representatives of the Philadelphia Parking Association, private parking operators, hotels and the Reading Terminal Market described a heavy tax and fee burden on center‑city parking that they say has driven closures and reduced supply.
Robert Seritzky told the commission that center‑city operators can face a combination of city taxes that take between 43% and 67% of gross receipts in some examples, and that in the last decade the city lost approximately 9,000 parking spaces due to facility closures. He offered an illustrative 40‑space lot with $480,000 in revenue where combined city taxes exceeded $321,000, leaving operating losses in an example case.
Speakers urged targeted relief for use‑and‑occupancy (U&O) taxes and explored options to shift burden such as higher on‑street parking meter rates or flex pricing; they argued these alternatives could maintain municipal revenues while stabilizing private parking supply. Harvey Spear and hotel and market representatives linked access to affordable parking to employee commutes and customers for restaurants and markets.
Commissioners asked comparative questions about on‑street vs. off‑street rates and the speakers proposed possible meter rate changes and demand‑responsive pricing.
Ending: The commission acknowledged the testimony and asked staff to consider the examples and potential revenue‑neutral swaps proposed by witnesses.
