ILLINOIS (WCIA) — A new tax on privately-owned parking areas and garages is still pending a second look from lawmakers, but that doesn’t mean the state can’t collect the revenue in the meantime.
Starting Wednesday, operators of parking garages and lots that include more than three spaces can expect to pay taxes on the rates they impose on purchasers.
That rate depends on whether the spaces go for hourly, daily, weekly or monthly rates. Monthly spots will be taxed at 9 percent; hourly, daily and weekly spots will see a 6 percent tax.
Operators of paid parking spaces, garages or lots are responsible for collecting that revenue via taxing the purchaser.
There are exceptions to the tax, including municipality-owned properties, employee spots in hospital-owned garages, residential off-street parking included in lease agreements and people who rent out fewer than four spots.
A 23-page document indicates how broad the scope of the law is, meaning all sorts of operators are affected, including valet services and people who put up their own, private property for temporary parking usage, such as during fairs or fireworks displays.
How efficiently enforcement measures will work is still to be determined: parking area operators are supposed to register themselves with the Illinois Department of Revenue and turn over the money on a monthly basis.
If an operator fails to comply with the new law, the offense is considered a Class A misdemeanor.
State officials anticipate $60 million in revenue from the tax, which is part of Gov. J.B. Pritzker’s $45 billion Rebuild Illinois Capital Plan, aimed at investing money into infrastructure projects across the state.
The revenue collected from the tax will be rerouted into “vertical projects,” such as universities, early childhood centers and other state facilities, according to a press release.