The tax tiers within the parking tax will be aligned with the City of Chicago, making it easier for parking companies in Chicago to comply with the tax and laying the groundwork for additional City-County collaboration for tax enforcement and audits.
Background:
•The ordinance imposes a tax upon the parking charge paid by customers of a Parking Lot or Garage in the County.
•The actual tax rates are NOT changing.
•Current County tiers start at a higher threshold than those of the City of Chicago. The County is adjusting its tiers to match the City.
•The tiers represent the different rates which a Parking Lot charges its customers. The tax rate is higher as the amount charged by the Parking Lot becomes higher.
•Ordinance was enacted in 2000 and was last amended in 2011 to clarify definitions and align due dates (no rate change).
Rationale:
•Alignment of tiers will allow the County to streamline enforcement of parking garages through the City/County collaboration.
•Aligning tiers will also help registered tax collectors for both City and County to easily calculate and remit taxes.
•The additional revenue will allow the County to invest in County infrastructure.
Budget impact:
•This adjustment is expected to yield an additional $1.32M in revenue in 2012.
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