Taxing parking, the way Pittsburgh does, can make downtowns livelier and encourage a healthier mix of transportation options.
Of course, implementing these policies can get tricky. A recent report from the Victoria Transport Policy Institute [PDF] delves into the issue and sorts out the best way to go about it.
At his blog, Transport Providence, James Kennedy considers what the conclusions mean for his city:
The long and short of it is that it’s politically easiest to tax parking on dedicated lots, rather than to do a “per space” tax on all parking, but this way of taxing parking has problems. We might be tempted, for instance, to tax the lots in downtown Providence but not tax the lot attached to, say, the Whole Foods, because our instinctive thought would be that though we don’t like a surface lot next to a grocery store, it’s much better than a bare lot serving nothing but parking alone.
The problem comes with the fact that the lot parking attached to businesses is free to customers and employees. Of course, it’s not actually free. It costs money which is passed into lost wages or higher prices. But to the worker or consumer, it appears free. When the price of commercial parking, i.e., the lots downtown that charge per hour, becomes more expensive without putting an equal burden on these other parking lots, it gives a stronger incentive for businesses to include free parking into their design as a benefit to customers or workers. This is not what we want.