On January 1st TransLink implemented a 21% parking tax for off street pay parking. In July, HST will bring the total parking tax to 35% on top of the parking fee itself. The BC Director of the Canadian Taxpayers Federation, Maureen Bader, explains that this means a $10 hourly fee to park will, in fact, cost drivers $13.55 per hour!

Maureen goes on to say:

“This is a complete and total tax grab that undermines the theoretical benefits of the HST. This government has been flying by the seat of it’s pants. If it continues on this way, it’s going to crash and burn.”

In 1999 the government granted TransLink the right to collect a 7% tax, and part of that legislation allowed TransLink to increase that tax to 21%. And that is exactly what they have done after a $150 million dollar deficit was forecast for next year.

A higher cost to park will result in fewer drivers, which can translate to less business for business owners that rely on the availability of affordable parking. HST is typically touted as beneficial to businesses by cutting embedded PST costs out of the picture, but in this situation, the HST may just prove to be the tipping point for consumers looking for a place to leave their cars while they shop.

Source: GlobalTV-BC

Conflicting Data: CityCaucus.com reports that when Harmonized Sales Tax in British Columbia is implemented it will absorb the existing 21% TransLink parking tax.