Parking rates in Louisville to increase due to new state-mandated tax
Prices at parking meters, surface lots and garages operated by Parking Authority of River City (PARC) will increase starting Jan. 1.
The increase comes as a result of a state-mandated parking sales tax implemented by the Kentucky General Assembly.
House Bill 8, passed in this year’s legislative session, requires the state’s 6% sales tax to be applied to parking prices.
PARC director Mike Tudor said the organization, which serves Louisville, is unable to absorb the cost of the mandatory tax without a price hike.
“Our organization is completely self-funded, and 100 percent of our revenues are reinvested back into our parking structures and services,” Tudor said in a news release. “In order to stay that way over the long term, we must raise our hourly, daily and monthly parking rates.”
The parking increase are as follows:
- Monthly unreserved parking goes from $96.07 to $107.14.
- Monthly reserved parking goes from $115.83 to $133.38.
- Transient hourly parking goes from $2.00 to $3.00.
- Transient all-day parking goes from $20.00 to $22.00.
- On-street meter parking for first two hours goes from $2.00 an hour to $2.25 an hour.
- On-street meter parking after first two hours goes from $3.00 an hour to $3.35 an hour.
The price increase is expected to bring an additional $1 million to PARC, which Tudor said will help cover capital expenses and cover improvements.
“The funding from this increase will help us ensure that our parking garages are safe, clean and well-maintained,” Tudor said.
This will be the first price increase PARC has instituted since 2018. Tudor said the parking authority previously considered raising prices but held off due to the COVID-19 pandemic.
According to officials, the pandemic caused a $4 million annual loss for PARC. In order to keep up with ongoing costs, leaders used PARC savings funds to cover expenses, which are estimated to be $8.5 million a year.
PARC plans to offer discounted rates online to help curb the increased cost. People can use PARC’s website to receive up to 50% on daily rates on non-event parking.