UPDATE: November 24 at 11:00 p.m.
During its regular meeting tonight, Spokane City Council voted yes to impose a 12% tax on commercial parking lots across the city.
SPOKANE, Wash. – The City of Spokane’s to add a 12% tax on commercial parking lots across the city sparked response from city leaders in the region.
Mayor Lisa Brown’s Office proposed the tax alongside Councilmembers Kitty Klitzke and Paul Dillon, arguing that the land used for parking lots would be better used for residential or commercial buildings.
The tax was also proposed in the midst of the City’s $13 million budget deficit, which Brown recently .
“This budget modification proposal represents a disciplined and transparent approach to stabilizing the City of Spokane’s finances,” Mayor Brown said. “These are difficult decisions, but they are necessary to ensure our city remains strong, not just for the year ahead, but for the long-term.”
To read the tax proposal, check out its most recent copy in the agenda for the November 17 city council meeting.
Spokane County Commissioner Al French weighed in about the tax in a he sent to Brown and the City Council, signed on November 21.
French advised against the parking tax, citing downtown Spokane’s office vacancy rate and the impact of the tax on the Spokane Public Facilities District and the Spokane International Airport.
Towards the end of the letter, French wrote the following:
“Parking revenue is the largest revenue source for Spokane International Airport. The CEO testified Monday that this ordinance will cost the airport $2.5M annually. Putting aside the fact that amount of revenue could finance $35M worth of improvements to our jointly owned asset that revenue also serves as part of the collateral for the debt the County is guaranteeing on behalf of the airport and the City of Spokane. The same condition also exists for the Public Facilities District (“PFD”) and its outstanding debt. Parking revenue is a significant part of the PFD’s available sources to service this debt. Again, the proposed ordinance jeopardizes the County’s collateral.
With this, it begs the questions: Is the City of Spokane willing to take revenue from its regional partners in order to solve their operating budget problems? If this is to be the new paradigm of this partnership, then that will factor into my support of future debt for properties located within the City of Spokane.”
Al French letter about City’s proposed parking lot tax
On November 12, City Council President Betsy Wilkerson proposed an amendment to the tax ordinance, changing the start date for the tax from January 1, 2026 to April 1, 2026.
The Spokane City Council is expected to vote on the tax during their next meeting on November 24.
ORIGINAL COVERAGE: November 21 at 12:30 p.m.
