Form revised June 11, 2010





Contact Person/Phone:

DOF Analyst/Phone:


Dan Eder / 684-8147



Legislation Title:


AN ORDINANCE relating to taxation; increasing the commercial parking tax and amending Sections 5.35.030 and 5.35.070 of the Seattle Municipal Code.


·         Summary of the Legislation:


This ordinance will increase the existing commercial parking tax rate from 10 percent to 12.5 percent.


·         Background:  


The Washington State Legislature passed legislation that was adopted as Section 208 of Chapter 42, Laws of Washington, codified at RCW 82.80.030, which authorized cities to fix and impose a tax for the act of or privilege of parking a motor vehicle in a facility operated by a commercial parking business within its incorporated boundaries.


In 2006, the City passed Council Bill 115668 imposing a commercial parking tax for the act or privilege of parking a motor vehicle in a commercial parking lot within the City that is operated by a commercial parking business.  The commercial parking tax rate currently in effect is 10 percent.


_ __       This legislation does not have any financial implications.  (Stop here and delete the remainder of this document prior to saving and printing.)


_x__      This legislation has financial implications.  (Please complete all relevant sections that follow.)



Anticipated Revenue/Reimbursement: Resulting From This Legislation:


Fund Name and Number


Revenue Source





Transportation Operating Fund


Commercial Parking Tax

$   5,460,000

$   5,460,000




$   5,460,000

$   5,460,000




·         What is the financial cost of not implementing the legislation?  


None identified at this time.


·         Does this legislation affect any departments besides the originating department


The legislation provides funding to complete high priority transportation projects within the Seattle Department of Transportation.



·         What are the possible alternatives to the legislation that could achieve the same or similar objectives?  


None identified at this time.


·         Is the legislation subject to public hearing requirements


There are no public hearing requirements.


·         Other Issues


The City has committed to move forward with approximately $841 million of transportation and utility projects in conjunction with the State’s Alaskan Way Viaduct Replacement Program.  Assuming the City’s remaining utility relocation costs are funded by rate-payers, the City faces a $425 million funding gap to pay for the Alaskan Way Seawall replacement, waterfront open space, Mercer West, and Parking Program / Project Services. 


Assuming current project schedules, the funding gap for these projects is $26 million in 2011 and $35 million in 2012 (total 2011-2012 funding gap is $61 million)


An increase in the commercial parking tax to 12.5 percent will raise approximately $5.4 million per year in new revenues.  This estimate is based on 2010 adopted budget projections for commercial parking tax revenues of $21.8 million and the 2010 commercial parking tax rate of 10 percent. 


Recent analysis by the City Budget Office concluded that a $5.4 million annual cash flow is sufficient to support approximately $68 million in bonds.


By state law, all commercial parking tax revenues must be used for transportation purposes. 


·         List attachments to the fiscal note below:


No attachments.