LOUISVILLE, Ky. (WDRB) -- It will soon cost a little more to park in downtown Louisville.
Parking garages and on-street meters operated by Parking Authority of River City (PARC) will increase on Jan. 1, 2023, the first change in parking rates since 2018.
The cost to park in a garage or surface lot is going up by $1 an hour. Parking meters will require an additional 25 cents for the first two hours, and increase 35 cents per hour after that.
Officials say the increase is due to a new state parking sales tax that takes effect next year, along with revenue declines connected to the COVID-19 pandemic. The Kentucky General Assembly approved House Bill 8, which requires sales tax to be collected on parking fees. That 6% tax will be applied for parking services on surface lots, garages and meters.
The grid below spells out the increases:
| Current Average Rate | New Average Rate | |
| Monthly unreserved parking | $96.07 | $107.14 |
| Monthly reserved parking | $115.83 | $133.38 |
| Transient hourly parking | $2 | $3 |
| Transient all-day parking | $20 | $22 |
| On-street meter parking (first 2 hours) | $2 per hour | $2.25 per hour |
On-street meter parking (after first 2 hours) | $3 per hour | $3.35 per hour |
PARC Director Mike Tudor said in a news release that, "PARC cannot absorb the increased expense incurred by the new sales tax."
Victoria Elliott, who frequently parks downtown, says she is unable to absorb the increased expense to park her vehicle. "I'm going to find free parking, because I can't afford to pay now," she said.
Elliott believes people from Louisville will balk at the higher fees. "We'll get out of town people that will still come down here, but I don't know if the local people are going to merge back."
Several others we spoke with agreed, saying they won't park downtown or will avoid the area altogether.
The new tax's estimated annual budget impact for PARC is $1 million, according to the release. Tudor said the increase will allow PARC to cover annual capital expenses and infrastructure improvements.
Despite complaints from local residents, Rebecca Fleischaker with the Louisville Downtown Partnership says it's a small enough increase that it will not deter you. If you want to come downtown, you're coming to something you want to come to.
"It's something that -- it's the way it is. I don't think it will keep people from downtown."
Fleischaker expressed confidence that people will continue to visit and work in the heart of the city. "It's kind of a hardship to overcome, but I think we're going to be OK."
PARC reports its annual operating expense as $8.5 million, but, in the previous two years, it lost $4 million because of fewer people in downtown Louisville due to the pandemic.
PARC officials say all garages will remain $1 for the first 30 minutes, and paid parking hours on the street won't be extended. Drivers can park on the street for free after 6 p.m., and street parking will remain free on Sundays.
Due to the increased rates, PARC will offer discounted daily parking in its garages online. Discounts go up to half off the daily parking rate.
This Saturday (Nov. 26) PARC plans to offer free on-street parking as part of Small Business Saturday.
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