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Parking tax would support building, hit private land

Illinois parking tax increase

SPRINGFIELD, Ill. – A tax on parking places to help finance Illinois’ $45 billion statewide construction plan has lawmakers taking a second look.

The (Springfield) State Journal-Register reports that the tax takes effect Jan. 1. It’s 9% on spaces that are rented by the month or year. It’s 6% for spaces rented hourly, daily or weekly.

It will raise $60 million annually, and is part of more than $800 million in new taxes and fees that will finance state construction.
But proposed rules would make the tax so broad that even those who rent private property for parking – as dozens in Springfield do annually in August during the Illinois State Fair – would pay the tax.

Springfield Republican Rep. Tim Butler suggested reviewing the tax because of difficulty in enforcing it.

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