Vote puts brakes on tax

City Councilman Jim Motznik has been trying to keep the parking tax at 45 percent instead of… City Councilman Jim Motznik has been trying to keep the parking tax at 45 percent instead of lowering it in accordance with state law, and an 8-0 City Council preliminary vote yesterday might allow him to do so.

Motznik said the reasoning behind his attempts to keep the tax high is that when the tax was lowered from 50 to 45 percent, Pittsburgh citizens didn’t see any change in parking rates.

In 2004, Pennsylvania passed Act 222, which proposed to gradually lower the parking tax from 50 to 35 percent by 2010. It’s also the act that raised the city occupational tax from $10 to $52 per year.

“The intent of the state bill 222 was to give that money back to the people that park in the city of Pittsburgh, so we reduced the tax,” Motznik said. “The rates were supposed to be reduced as well, but the owners of the garages and lots put that money in their pockets.”

Motznik said he asked the city controller for an audit last year and found that all of the parking lots and garages included in the audit had either kept their prices the same or raised them.

The tax was lowered from 50 to 45 percent last year, and the upcoming city budget calls for a decrease from 45 to 40 percent next year. In 2009, the tax would go to 37.5 percent and down to the full 35 in 2010. The mayor will propose a more finalized version of the budget at the end of October when City Council will meet to vote on it.

But Motznik said the city would lose $25 million in revenue if the city lowers the tax next year, and it still won’t help the people who park.

“Nothing will change, the rates aren’t going to change,” he said. “Even if we would have lowered the tax [the parking garages and lots] wouldn’t have lowered their rates, and in the future they’ll go up slightly someday.

“But I’m still not willing to give them a 25 million dollar birthday present.”

City Council will take its final vote next week on the fate of the tax, but ultimately it’s the state’s decision on whether or not it will approve this change from the regulations laid out in Act 222.

Pittsburgh’s parking rates are actually below the national average. It costs $14.60 to park in Pittsburgh all day as opposed to Philadelphia where it costs $22. The national average is $15.15.

University spokesman John Fedele said Soldiers and Sailors parking garage in Oakland increased it prices in July of 2004 from $70 to $85. Act 222 went into effect in December of that year. Fedele also said it was only Soldiers and Sailors’ second price increase in 10 years.

Councilman Bill Peduto abstained from the vote yesterday and has asked the parking authority to reduce its rates. The Pittsburgh Parking Authority could not be reached for comment.

Peduto hopes cuts will benefit the Port Authority, while revenue from Motznik’s plan would go toward bettering the city’s debt and pension problems.