City Council opposes State Government's CBD parking tax City carpark. THE City Council has voted to oppose the State Government's CBD parking tax, saying it will lead to higher parking fees, hurt traders and deter businesses from opening. The $750 a year tax on city carparks, to be paid by owners of the spaces, will take effect from July 1, 2014, and is expected to raise $26 million a year. The biggest contributor will be the council, which manages the UPark chain and all on-street parking. The government has repeatedly defended the tax as necessary for improving public transport services and reducing traffic congestion. Cr Natasha Malani, who successfully pushed for the council to oppose the tax at this week's meeting, said it would cost ratepayers about $6 million a year and would be a "significant burden" on the CBD economy. "We will have no choice but to increase parking charges, including on-street," she told the City Messenger. Why does a CBD have to fund public transport infrastructure that is a state requirement? She said it was not the time to put an extra burden on businesses that were already struggling from a sluggish economy and spiralling power costs. Cr Houssam Abiad told the meeting the council and city businesses should not have to cover the government's budget shortfalls. He said the tax would severely undermine the council's successful UPark business. Cr Anne Moran said the cost of parking was already the public's biggest complaint about the CBD. "The biggest black mark against the city is just going to get worse," she said. This has the potential to kill the city just when we are getting a bit of traction. Property Council SA executive director Nathan Paine said city property values would be lowered because buyers would have to factor in paying an extra "de facto land tax." Mr Paine said higher parking fees would push more people to shop in the suburbs, where parking is free. The "poorly thought out revenue measure" worked against the government and the council's push to make the city more "vibrant," he said. The council, which previously did not have an official position on the tax, decided it was unacceptable in its present form but would keep negotiating with the government on alternatives. Cr Malani doubted the council would accept any form of tax, but chief executive Peter Smith told the meeting there were options that might be "palatable."