What Was the Impact of the Parking Authority Rate Hikes?

What Was the Impact of the Parking Authority Rate Hikes?

In 2014 the Pittsburgh Parking Authority approved a series of rate hikes at its parking facilities.  These were the first increases since 2004 and were recommended by the City’s Act 47 recovery team as a way to garner more parking tax revenue for the City.  Since the parking tax rate is written into state legislation it will require an action in Harrisburg to change it.

Under the original proposal increases at garages were to come in 2014, 2015, and 2017 (in 2016 the Authority board cancelled the 2017 increase).  In the 2014 Brief we estimated that receipts would reach $37.5 million by the time all of the planned hikes went into effect.  The Authority’s  2017 audit shows parking facility receipts totaled $36.0 million.

So how did the City make out?  Based on the City’s effective tax rate parking taxes from facility receipts rose $1.3 million from 2014 to 2017.

However, other changes happened in the time frame of the rate increases. in 2015 the Authority amended its agreement with the City concerning meter revenue and the sharing of parking court revenue changed.  Overall, in the years 2014 to 2017–the year of the first facility rate increase to the year the last one was to go into effect–the total amount paid from the Authority to the City from parking taxes, meters, parking court, payments in lieu of taxes, etc. rose $8.6 million from $21.2 million to $29.8 million.