RCC pushes back on proposed Toronto parking space levy

RCC has issued the following to the City of Toronto in response to a parking space levy for businesses — a feasibility study for which will be considered at City Hall in a motion on February 7, 2023.

Our retail members, representing businesses of all sizes and formats, appreciate the City’s need to develop a more sustainable revenue source but continue to believe, as we did in 2016 and 2007, that a parking space levy is not a fair and equitable method to raise tax revenue.

Using the previous rates from a 2016 KPMG report on the proposed parking space levy, a cost between $0.50 per day per space and $1.50 per day per space would be imposed on all businesses, unfairly targeting retailers, who are required to have a minimum number of parking spaces because of Toronto’s bylaws. This fee is a significant increase, especially in the current environment where small, mid and large, and particularly those in the downtown core are in the midst of post-pandemic recovery.

In our letter, we stressed the difference between a parking space levy and parking sales tax. The current proposal before Council seeks to charge a fee, including on unpaid parking spaces. We have encouraged Toronto to study a parking sales tax, which would only impact paid parking spaces. Further, Council members have expressed they are exploring a parking space levy as a way to encourage sustainable transportation, in addition to new revenue generation.

RCC will be pushing hard for our members on this issue. The last thing our small, medium, and large retailers need is a new levy, disproportionately impacting retailers and further inflating the cost of goods.