ssiguy2
Senior Member
Of course Toronto has the ability to tax parking spots, every city in the country does.
The city sets municipal tax rates so all they have to do is add the tax per vehicle spot onto their yearly city tax bill. It does not require a sales tax in the slightest. Needless to say, all parking providers will pass the tax onto their consumers. This is absolutely no different than cities having different tax rates for industrial, residential, and commercial uses.
People will naturally start to drive less as the tax levels increase and correspondingly, their transit fares fall. Such a system has the benefit of encouraging infill, is far more equitable as it shares the pain city-wide as opposed to a small downtown section, and could be set up tomorrow.
The city sets municipal tax rates so all they have to do is add the tax per vehicle spot onto their yearly city tax bill. It does not require a sales tax in the slightest. Needless to say, all parking providers will pass the tax onto their consumers. This is absolutely no different than cities having different tax rates for industrial, residential, and commercial uses.
People will naturally start to drive less as the tax levels increase and correspondingly, their transit fares fall. Such a system has the benefit of encouraging infill, is far more equitable as it shares the pain city-wide as opposed to a small downtown section, and could be set up tomorrow.