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Charges for parking motor vehicles are taxable. However, there are some parking services that are not taxable.

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Charges for parking motor vehicles are taxable. A motor vehicle is any vehicle that requires a license for road use. It includes:

Cars
Motorcycles
Motor homes
Pickups
Trailers
Trucks
Vans

Parking means charges for parking motor vehicles in parking lots, parking ramps, buildings or other places. Taxable charges can be contract, hourly, or other periodic basis, but do not include parking at a meter.

Examples of Taxable Parking Services [+]

Contract and per-use basis parking in lots and ramps paid by individuals or businesses
Charges to use an electric charging station
Employee or customer parking fees
Fees paid to businesses or private parties for parking space provided on lawns, driveways, or other surfaces
Parking lots or ramps using an ‘honor box’ system where customers insert money into a box rather than paying an attendant
Parking permits for students at high schools and universities, unless provided with housing
Parking services at a facility that is privately owned and operated
Parking services at a hotel, motel, summer camp, resort lodge, or other places of temporary lodging
Parking services at a municipal, county, or state government parking facility
Parking services provided to business that have a Direct Pay authorization. Direct Pay authorization cannot be used to buy parking services exempt from tax.
Parking services provided to car rental companies for parking their rental vehicles
Parking services purchased by a business to provide free parking to customers or employees
Separately stated charges for parking not included in a lump-sum contract for office space rental
Valet parking

Examples of Nontaxable Parking Services [+]

Charges for storing vehicles at impound lots
Fees charged for parking bicycles or off-road vehicles
Fees for storage units (mini storage) used to store household goods, business goods, motor vehicles
Parking services may be sold exempt from sales tax if the purchaser gives you a completed Form ST3, Certificate of Exemption. Examples include:
- Nonprofit organizations
- Businesses reselling parking services
Parking meter charges. Parking meters are devices where a customer prepays at the time the customer parks. Parking meters accept money, tokens, credit cards, or other forms of payment and records the amount of time purchased for a specific parking spot.
Parking spaces included as part of a lump-sum contract for office space rental.
Residential parking services
Fees charged to hanger an airplane or dock a boat
Traffic and parking control (unless for funeral processions or oversized loads on public roads)

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