Berkeley, CA Local Taxes & Fees: Parking Tax (2026)

48, the Parking Space Rental Tax ordinance adopted in 1978, imposes a 10 percent tax on the rent for occupying a parking space in a "parking station," defined to include any outdoor lot, garage or structure where vehicles are parked for a charge, including valet or service labor charges billed with the parking. Each occupant pays the tax to the operator at the time rent is paid, and the operator must be currently licensed as required by City Ordinance No. 5017 before engaging in the parking station business.

The tax excludes coin-operated City parking meters and parking that is part of residential or hotel premises used by a resident or registered hotel guest, including off-site hotel parking billed to the guest's room. Operators file a monthly return with the tax collector (the Director of Finance) and remit by the last day of the following month. A deficiency determination can add 10% for negligent underpayment or 25% for fraud, on top of 1% monthly interest, and the tax collector can extend filing deadlines by up to a month for good cause, though interest still accrues at 1% per month during any extension.

Notices of a deficiency determination generally must be mailed within three years of the filing deadline, except in cases of fraud, evasion, or a missing return, where no time limit applies.