Spokane business and community leaders are responding to a proposed twelve percent parking tax that city officials are considering as part of efforts to address a significant budget gap. The measure, introduced with limited notice, could take effect at the start of 2026 and is intended to support transportation projects.
City staff note that the proposal would apply to many downtown parking facilities and could influence long-term development. Supporters believe the tax could encourage new uses for underutilized surface lots. Some also see it as a way to shift revenue toward transportation priorities without increasing general fund spending.
Business organizations, including the Downtown Spokane Partnership, have raised concerns about timing, communication, and economic impact. Leaders say that higher parking costs could make it harder to attract customers, employees, and visitors at a time when downtown continues to face challenges related to safety, vacancies, and shifting consumer behavior. Some property managers and business owners worry the tax could add substantial operating costs and discourage investment.
The Spokane City Council is expected to consider the proposal later this month as part of its broader budget decisions. Community members on both sides are urging the city to fully evaluate potential impacts before moving forward.
