Commercial Parking Tax
What is the commercial parking tax?
The commercial parking tax is levied upon a person who pays to park a motor vehicle in a commercial parking lot within Seattle city limits.
Note: The tax is imposed upon the consumer, not the commercial parking business. However, the City ordinance requires the commercial parking business to collect the tax from its customers and remit it to the City.
What is the effective date of the commercial parking tax?
July 1, 2007.
How much is the commercial parking tax?
Until July 1, 2008, the tax rate will be 5% of the parking fee charged by the commercial parking business. From July 1, 2008 to June 30, 2009, the rate will be 7.5%. July 1, 2009 to December 31, 2010, the rate will be 10%. Effective January 1, 2011, the parking tax rate is imposed at 12.5%.
The commercial parking business is required to show the commercial parking tax amount separately from the parking fee on the parking ticket or receipt (although the receipt may show a combined amount for the commercial parking tax and the retail sales tax).
What commercial parking lots are subject to the tax?
Any area with parking stalls (covered or uncovered) where a fee is charged to motorists for the parking of motor vehicles.
What parking lots or areas are not subject to the commercial parking tax?
How will the City use the commercial parking tax revenue?
Revenue from the commercial parking tax will be used by the City only to fund the maintenance and improvement of local transportation infrastructure.
I am an owner, manager, or operator of a commercial parking business in Seattle. What do I need to do?
You should receive a commercial parking tax return from the City prior to August 10, 2007. If you do not receive it by then, please contact the City's Revenue and Consumer Affairs Division at 206/ 684-8484.
The City will determine whether your business is required to report commercial parking taxes collected by you on a monthly, quarterly, or annual basis. You will be required to report and pay the commercial parking tax you collect using the form provided by the City.
Tax returns and payments are due on or before the last of the month following the assigned reporting period.
What if I lease non-residential real estate and my commercial parking fee is combined with other payments under the lease?
The City will determine the fair market value of the parking fee, based upon written rules. Please contact the Revenue and Consumer Affairs Division at 206/ 684-8484 for more information.
What is the legal basis for the commercial parking tax?
The City passed Ordinance 122192 in 2006. The law will be codified as Seattle Municipal Code Chapter 5.35 upon its effective date of July 1, 2007.
The material in this site is intended for general informational purposes only. While it is current at the time of publication, changes to the Seattle Municipal Code (SMC) or state law may invalidate some of this information. In the event of a conflict between this guide and the SMC, the SMC prevails.