Parking Tax Rate Changes Effective July 1, 2013
May 31, 2013
To: All Registered Parking Tax Payers, Licensed Parking Lot/Garage Operators and Valet Parking Businesses
The City of Chicago has amended the Parking Tax ordinance and changed the tax from a tiered rate structure to a percentage-based rate effective July 1, 2013. The percentage introduced is expected to be revenue neutral for the City and it is believed that this percentage rate will simplify the administrative and compliance efforts for both you and the Department of Finance. The annual Parking Tax returns have been modified to reflect the percentage tax rate for periods beginning July 1, 2013. The annual return for the year ending June 30, 2013 is unchanged and still reflects the tiered rates and that return is due by August 15, 2013.
Effective July 1, 2013 the City of Chicago parking tax rates will be 20% for daily parking during the week as well as all weekly and monthly parking and 18% for daily parking on the weekends. Other than the rate change, little else has changed. The tax does not apply to daily parking charges less than $2.00, weekly charges less than $10.00 or monthly charges less than $40.00. Other exemptions such as residential off-street parking, hospital employee parking at lots or garages owned or operated by the hospital and on-street parking remain exempt.
Below please find the link to an updated Information Bulletin which outlines the City’s position on various applications of the parking tax and will hopefully provide you with answers to any questions you may have about the Parking Tax. If you have any other questions please contact our Customer Service Unit at 312.747.4747.