By Illinois Radio Network
SPRINGFIELD – On New Year’s Day, Illinois residents will see a bevy of new taxes and laws, including a state tax on parking spaces.
The new Illinois parking tax will affect most parking structures that have hourly, weekly, monthly or annual parking rates. It also will apply to valet parking and long-term vehicle storage facilities.
There are some exemptions to the tax, including municipal parking structures that are owned and operated by federal, state or local governments. Parking areas that are owned by a municipality, but operated by a private company will not be exempt. Other exemptions include employee parking at hospitals and residential and off-street parking that is part of a lease agreement. Also, parking facilities that have fewer than four parking spots are exempt from the tax.
The tax will be 6 percent of the rate for hourly, daily or weekly parking. The tax rate is 9 percent on monthly or yearly parking spaces.
Acting Director of the Illinois Department of Revenue David Harris said the revenue will go toward the $45 billion Rebuild Illinois capital spending plan that lawmakers passed over the summer.
“Revenue from this new program will go to rebuilding our state’s infrastructure and building a stronger economy,” he said. “It is this department’s duty to help achieve compliance, so all taxpayers are treated fairly and consistently.”
Officials said the parking tax revenue will go toward vertical projects, such as universities, early childhood centers and state facilities.
Operators of parking facilities need to register with the Illinois Department of Revenue prior to the new year. Registration is available online at mytax.Illinois.gov.
Illinois Radio Network can be reached at News@WJBC.com.