Calgarians working in the downtown core are digging deeper for parking fees after Vancouver-based Imperial Parking Canada Corporation hiked its rates in response to what it calls an unfair city business tax.
The surcharge of between 50 cents and $1 a day on Impark’s 14,000 downtown and Beltline-area lots was applied starting May 21. Before the surcharge, Calgary motorists anted up for daily rates which ranged up to $16, compared to $13 in Edmonton. The monthly rate will jump anywhere from $4 to $9.
“I think we’re expecting a mixed review,” said Julian Jones, Impark’s vice-president for business development. “This particular surcharge is a result of an unexpected and unreasonable charge imposed by the city. Hopefully, people will see this as a passing on of a cost created by the city’s actions, rather by our own.”
The company is pursuing the matter through Court of Queen’s Bench, with an examination for discovery set for the week of June 24.
While City of Calgary officials insist the $1.47- million business tax on Impark properties is equitable – and reflects higher parking rates charged to motorists in recent years – Impark says it was forced to add the surcharge because it has experienced a 500-per-cent hike in taxes applied to its lots since 1998.
The company says it is being charged for every square foot of land it leases, owns or manages, while other firms that charge a fee for downtown space they rent do not face the same assessment. Commercial and residential offices and apartments are charged business tax only on the space they occupy, not the space they rent out.
“Impark would prefer to work out an alternative to resolve this business tax issue rather than pass it on to our patrons. It’s unfortunate, but it’s what the city is forcing us to do in order to continue providing quality parking services,” says John Laires, Impark’s vice-president, Western Canada.
The city collects approximately $140 million in business taxes from the 23,000 assessed businesses in Calgary, meaning Impark now pays more than one per cent of all city business taxes.
Laires says Impark is willing to work with the city to develop a process for allocating business taxes equally and fairly, and urged concerned Calgarians to call Mayor David Bronconnier and their aldermen.
