Stamford Advocate (Sunday)

New state tax jacks up parking fees

A quarter at a Stamford parking meter will earn you 11 minutes rather than 12

- By Angela Carella

STAMFORD — In the spring, city officials debated at multiple meetings whether to hike the parkingmet­er fee by 25 cents.

After reaching a compromise with downtown merchants worried that an increase would scare off customers, the administra­tion and elected representa­tives raised the fee from $1 an hour to $1.25.

It’s about to go up again, but this time it’s not the city’s doing.

The state legislatur­e this year passed a law that taxes parking revenue, and it kicks in Jan. 1. Now meters will be subject to the same 6.35 percent sales tax charged on other goods and services in Connecticu­t.

It means that the $1.25 hourly meter rate is about to go to $1.33.

Not a good thing, said Greg Fries, who Monday used his phone to access the ParkMobile app and pay a meter on West Park Place, where he was headed to a restaurant for lunch.

“Of course it’s not a good idea,” Fries said. “It’s expensive enough as it is.”

He likes the app because when you pay with your phone you can add time on the meter from the restaurant, should you need it.

“It helps you avoid getting a ticket,” Fries said. “But there’s a charge for using the app.”

It’s a 35cent transactio­n fee, which Monday brought Fries’

parking cost up from $1.25 to $1.60. Come New Year’s Day, it will be 6.35 percent more, or $1.70.

Fries shrugged. “What can you do?” he said.

Now a quarter gets you 12 minutes of parking. Soon it will get you 11 minutes, said Jim Travers, chief of Stamford’s Transporta­tion Bureau.

He and his staff are figuring out how to charge and collect the tax, then separate it from the city’s revenue stream and send it to the state, Travers said.

“It’s the first time we’re charging a tax on meters,” Travers said. “We’re working with the Finance Department and the Cashiering and Permitting Office so it’s allocated appropriat­ely.”

Downtown has about 250 older meters, which his staff will have to reprogram one by one, he said. The 400 or so new meters can be reset from the Transporta­tion Bureau office.

Parking in city garages, now $1 an hour, will increase to $1.06. The tax also will be imposed on those who purchase monthly passes to park in state and municipal lots and garages.

The tax comes just after Travers’ office received approvals from elected boards to add parking meters on lower Washington Boulevard, Pacific Street, Division Street and Clinton Avenue.

Matt Inzitari, a Stamford man paying a meter on Main Street at lunchtime Monday, said he doesn’t mind a tax if it’s put to good use.

“It makes sense if the money goes toward the infrastruc­ture — our highways need work. And I’m a fan of putting money toward education,” Inzitari said. “As long as the money is spent logically, as long as it’s used responsibl­y, I would be on board.”

Connecticu­t’s infrastruc­ture needs amount to billions of dollars. The revenue expected to be generated by the parking tax will fall far short.

Chris McClure, a spokesman for Gov. Ned Lamont’s budget office, said the parking tax is expected to raise $1.8 million for the state’s general fund in the remainder of this fiscal year, and $3.7 million in a full fiscal year.

It will be a small part of the total of Connecticu­t’s “sales and use” taxes, which Lamont and the state legislatur­e expanded this year.

On July 1, for example, the tax on a Lyft or Uber ride increased from 25 cents to 30 cents.

Residents were paying a 1 percent tax on digital goods and services before Oct. 1. After that, it increased to the full 6.35 percent sales tax.

Oct. 1 also launched an increase in the tax on restaurant and takeout meals and supermarke­t catering, from 6.35 percent to 7.35 percent. That day, the tax on alcoholic beverages, except beer, jumped 10 percent.

The parking tax won’t be the only one to start Jan. 1.

The 6.35 percent sales tax will be charged for drycleanin­g and laundry, except laundromat­s; interior design services; and sales of safety apparel and protection equipment.

From the pool of revenue generated by all the “sales and use” taxes, a fraction, .5 percent, will be diverted to the Special Transporta­tion Fund, to Inzitari’s point. It will amount to $362.9 million in fiscal year 2020, McClure said, and about the same amount the year after that.

“That diversion was set up in Fiscal 2017 to keep the Special Transporta­tion Fund solvent,” McClure said. “It was meant to be a shortterm aid to the fund.”

Lamont and state Democrats have said they expanded the “sales and use” taxes to help close the state’s $3.7 billion deficit.

Now Travers and his staff are working to see the state gets the money it will be owed, but the increasing number of motorists who don’t use coins may not notice the new tax.

Travers said about 42 percent of those who park downtown pay with a credit card and 27 percent use the app.

“Together that comes to almost 70 percent,” he said. “More and more people are using alternativ­es to the quarter.”

 ?? Tyler Sizemore / Hearst Connecticu­t Media ?? Stamford’s Greg Fries pays for parking using the Park Mobile app at Columbus Park in downtown Stamford last week. Starting Jan. 1 a tax on metered parking will increase meter rates on downtown street spaces from $1.25 to $1.33. The city is struggling with how to collect the tax from meters, including for people who pay in cash and will no longer be able to drop in just quarters. Meters don’t take nickels and pennies, so motorists who don't want to use a credit card will be forced to overpay. Fries says he doesn't mind paying the 35 cent convenienc­e fee on the Park Mobile app, but is opposed to extra 8 cent tax upcoming.
Tyler Sizemore / Hearst Connecticu­t Media Stamford’s Greg Fries pays for parking using the Park Mobile app at Columbus Park in downtown Stamford last week. Starting Jan. 1 a tax on metered parking will increase meter rates on downtown street spaces from $1.25 to $1.33. The city is struggling with how to collect the tax from meters, including for people who pay in cash and will no longer be able to drop in just quarters. Meters don’t take nickels and pennies, so motorists who don't want to use a credit card will be forced to overpay. Fries says he doesn't mind paying the 35 cent convenienc­e fee on the Park Mobile app, but is opposed to extra 8 cent tax upcoming.
 ?? Tyler Sizemore / Hearst Connecticu­t Media ?? A parking meter shows the current rate of $1.25 per hour at Columbus Park last week.
Tyler Sizemore / Hearst Connecticu­t Media A parking meter shows the current rate of $1.25 per hour at Columbus Park last week.
 ?? Tyler Sizemore / Hearst Connecticu­t Media ?? A driver pays for parking at a meter at Columbus Park in downtown Stamford on Dec. 16. Starting Jan. 1, a tax on metered parking will increase meter rates on downtown street spaces from $1.25 to $1.33. The city is struggling with how to collect the tax from meters, including for people who pay in cash and will no longer be able to drop in just quarters. Meters don’t take nickels and pennies, so motorists who don't want to use a credit card will be forced to overpay.
Tyler Sizemore / Hearst Connecticu­t Media A driver pays for parking at a meter at Columbus Park in downtown Stamford on Dec. 16. Starting Jan. 1, a tax on metered parking will increase meter rates on downtown street spaces from $1.25 to $1.33. The city is struggling with how to collect the tax from meters, including for people who pay in cash and will no longer be able to drop in just quarters. Meters don’t take nickels and pennies, so motorists who don't want to use a credit card will be forced to overpay.

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