Do Increased Parking Meter Rates Decrease Sales Tax Revenues?
Without too much discussion last year, the L.A. City Council raised parking meter fees citywide to at least $1 an hour at all meters. Times were also extended, angering some businesses, especially theatres in the NoHo Arts District where patrons potentially had to leave during intermission or in the middle of the show to refill a meter. A year later, some businesses still see a drop in business with blame towards increased rates, says the Daily News:
Mike Puetz, whose $5.99 breakfast specials at Henri's Restaurant and Barroom on Sherman Way in Canoga Park has long been a draw for customers, says he's feeling the pain of the meter rate hikes - and knows it's not because of the economic recession."I know for a fact that it did hurt my business," Puetz said. "Because I have another restaurant in Oxnard and when the economy went sour, my business actually picked up about 12 percent at the other location because of our prices - and this (Canoga Park) location went down about 15 percent when parking meter (rates) went up.
"I would think it is counterproductive because they're not getting the tax revenue from us for sure."
A report on the effectiveness of the new parking meter rates should be completed later this month. The rates were expected to nearly double the income--$20 million--made from the city's 40,000 meters, but with the recession and the completion of introducing the rates mid-year, numbers are expected to be lower.
Previously
- Parking Meter Fees to Increase, Hours to Extend
- Parking Meter Expert Said City Did it Wrong
- New Parking Rates/Times Stir Drama in NoHo Arts District
- Tom LaBonge Regrets Voting to Increase Parking Meter Hours