Move to cut Philly's parking tax not likely to leave the lot

City Council's Rules Committee approved a bill yesterday that would lower Philadelphia's parking tax by 5 percent, but it faces a likely smackdown by Mayor Nutter because the cash-strained city can't afford it.

The city's parking tax was increased from 15 to 20 percent in 2008. The bill approved yesterday - which now goes to the full Council for a vote - offers two options for cutting the tax. One is a decrease of a half-percent starting fiscal year 2013 for 10 years. The other is a cut of 1 percent starting in 2014 for five years.

"They've carried their burden for a while," said Councilman Jim Kenney. "I don't mind taxing people, but if we're not taxing others . . . the burden should be on all of us."

Philadelphia's parking tax is higher than New York, Washington and Los Angeles, which range from 10 to 18.5 percent.

The committee's action came after Robert Zuritsky, president of the Parkway Corp., the largest owner of parking lots in the city, testified that his company and others had to cut jobs by 20 to 30 percent since the tax hike, while not raising their rates.

"We're sensitive to our rates and to our customers," Zuritsky said. "If you charge too much, people are not going to park with you."

The parking industry had hoped the reduction would start next year but with school district budget woes, Kenney said that couldn't happen.

But City Finance Director Rob Dubow said the mayor would likely veto the bill. He said it would cost the city about $4 million a year for each 1 percent decrease.

The city also has been cracking down on parking-lot operators who do not pay taxes and are not registered with the city.

So far, Revenue Commissioner Keith Richardson said the city has collected $750,000 from delinquent operators through audits conducted since fiscal year 2009, but some operators are appealing.