A state-mandated measure that requires the collection of sales tax on parking fees goes into effect next year and will result in a PARC (Parking Authority of River City) increase for Louisville residents.
The passage of House Bill 8 in the Kentucky General Assembly earlier in the year requires a 6% sales tax to be applied to all parking services. It is estimated that the tax will have an impact of about $1m for PARC. Therefore, beginning on January 1, a rate increase designed to cover the implementation of new sales tax will go into effect for on-street parking meters and parking garages operated by PARC. The increase will also recoup revenue declines connected to the COVID-19 pandemic.
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At present, the operating expenses for PARC garage maintenance is around $8.5m. Pandemic related losses averaging $4m per year took place in 2020 and 2021, so the organization needed to dip into its savings fund to cover the cost of maintenance.
To help ease the pain of the increased parking rates, drivers who pay in advance for daily parking will receive a discount from PARC.
This will be the first parking rate change put into effect since 2018.
