SPOKANE, Wash – Spokane City Council has approved a new 12% tax on paid parking in commercial lots, set to start in April of 2026. The decision came after a 5-2 vote Monday night, following extensive public and council comment.
Business owners shared a fear that more expensive parking would drive consumers away from downtown.
“I would encourage you to do the right thing and vote no because this will have a negative economic impact on downtown,” said Brad Barnett of Spokane Business Association.
Others were optimistic, highlighting potential positive outcomes from the tax.
“What we’re not talking enough about are the positive outcomes of a tax like this,” said one during public comment.
While the ordinance has come after the announcement of a 13-million-dollar budget deficit for the Lilac City, state law is clear: revenue from the tax must fund transportation projects.
Another goal of the ordinance: deterring parking in surface lots. A presentation by Jon Snyder before the vote showed 30 percent of Spokane’s downtown is occupied by lots like these.
Another concern, how downtown’s workforce will afford the tax.
“Why are these business owners not covering the cost parking or transit passes for their employees,” asked Erik Lowe of Spokane Reimagined.
The ordinance passed with just two holdouts on the council: Councilman Jonathan Bingle, and Councilman Michael Cathcart.
“A lot of this disagreement could have been avoided by obviously doing the right thing early and engaging with our stakeholders and yet that did not happen,” said Bingle.
Cathcart added, “The impacts are obviously the ones we do not want to see.”
Under the new ordinance, commercial lots will face a 12 percent tax, while multi-level garages will charge half that rate. Employee, student, residential and on-street parking lots will be exempt, as will parking with a disability placard.
