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MOBILITY - ACTION ITEM: (1) Receipt and Discussion of Presentation on Parking Occupancy Tax; and (2) Direction to Staff as Appropriate.
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Meeting Date: August 20, 2025
Contact Person: Elizabeth Shavelson, Assistant Chief Financial Officer
Finance Department
Phone Number: (310) 253-6018
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [X] No [ ]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail via GovDelivery (08/15/2025): Meetings and Agendas - Mobility Subcommittee, Parking Authority; Notify Me - Construction, Street Maintenance and Closures; Stay Informed - Bicycle & Pedestrian / Culver CityBus / Construction, Street Maintenance and Closures; Culver city Business License List, Economic Development Newsletters
Department Approval: Lisa Soghor, Chief Financial Officer (08/13/2025)
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RECOMMENDATION
Staff recommends that the Mobility Subcommittee (1) receive and discuss a presentation on parking occupancy tax; and (2) provide direction to staff as appropriate.
BACKGROUND/DISCUSSION
The Subcommittee requested to agendize discussion of a potential parking occupancy tax. A parking occupancy tax, sometimes referred to as a parking facility tax, is a local tax that municipalities may impose on occupants of parking spaces in local, paid parking facilities. As it is a tax, it must be approved by Culver City voters. Currently, the City of Culver City does not have a parking occupancy tax in place.
Staff conducted an informal survey of parking occupancy rates throughout Los Angeles County and identified the following tax rates for comparison:
• City of Los Angeles = 10%
• City of Santa Monica = 10% on City facilities and 18% on private facilities
• City of Burbank = 12%
• City of Malibu = 10% (excludes valet parking spaces)
If the Subcommittee is interested in pursuing a parking occupancy tax, the Subcommittee should not only consider the potential tax rate but the tax structure. For example, the Subcommittee could examine to whether to impose a tax on valet parking spaces, create tiered tax rates for public and private facilities, and/or require businesses to post a parking occupancy tax collection bond.
The City of Culver City Parking Authority (Parking Authority) consists of 9 parking facilities, including 4 parking structures and 5 surface lots, and on-street parking meters. In Fiscal Year 2023-2024 the Parking Authority (Fund 475) generated $4.20 million in parking fees from the City’s various parking facilities. Over two-thirds of this revenue, approximately $2.85 million, came from parking fees collected from the City’s parking structures. Most of the remaining revenue, approximately $1.35 million, came from the City’s parking meters (located mostly on-street).
The City does not currently have a full inventory of all the paid parking facilities within the City limits. According to the City’s Business Tax consultant, HdL, the City has 35 registered automated public parking lots or garages of various sizes where a fee or rental is charged directly or indirectly. This number includes the City’s facilities. These businesses are currently charged a business license tax rate based on square footage, so the City does not have information about how much revenue the private parking facilities generate.
A comprehensive list of privately owned paid parking lots or garages within Culver City will likely include commercial developments, hospitals, medical buildings and hotels. Additional research is necessary to develop a comprehensive inventory of paid parking facilities throughout the City including information on rates, revenue and occupancy. However, upon initial review, it appears that the City’s Parking Authority operates most of the larger parking facilities in the City.
In the absence of a comprehensive inventory, staff is unable to provide an estimate of revenue generated by a potential parking tax at this time. For the purposes of discussion, if the City were to impose a 10% tax on City parking facilities (excluding on-street parking meters), the tax is estimated to yield approximately $285,000 annually based on Fiscal Year 2023-2024 actual receipts.
Ultimately, if the City is interested in imposing a parking occupancy tax to generate revenue the City Council will need to vote to put a ballot measure on an upcoming general election for approval by Culver City voters. The threshold for voter approval depends on the purpose of the tax funds. A general tax intended to generate revenue for the City’s general fund to be used for general City purposes requires a simple majority of voters (50% + 1). A special tax in which funds will be dedicated for a specific purpose requires a two-thirds supermajority (66.67%) of voters to pass.
Voting on a general tax measure must be held as part of a consolidated general election that includes election of members of the governing body. Culver City’s next consolidated general election is scheduled for November 2026. Special taxes may go on the general election ballot, a special election ballot, or an all-mail ballot.
The additional research necessary to develop revenue projections would take a significant amount of staff time. If the Subcommittee is interested in pursuing a potential parking tax, staff recommends that this goes to the full City Council for consideration.
FISCAL ANALYSIS
The amount of funds to be generated by a potential parking occupancy tax would depend on the proposed tax rate and structure. Until an inventory of private parking facilities is done, there is no way to estimate the potential revenue from a parking tax. The City parking facilities make up the majority of available parking in the City, and a 10% parking tax would only yield approximately $285,000 annually from those facilities.
It should also be noted that there would be initial costs to set up a parking tax program and ongoing expenses to monitor, track and enforce revenue payments. At this time, staff does not have an estimate of what those expenses would be.
ATTACHMENTS
None.
RECOMMENDED MOTION
That the Mobility Subcommittee:
1. Receive and discuss a presentation on parking occupancy tax and provide direction to staff as appropriate.