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Parking spaces for non-residential buildings
- A parking lot tax is charged for parking spaces for non-residential buildings. In some areas of downtown, a tax is charged for indoor and outdoor parking. In other areas, a parking lot tax is only charged in outdoor parking lots that are larger than 10,000 m2.
montreal.ca/en/topics/types-taxes
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What is a parking lot tax?
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How is parking tax calculated?
You pay Parking Tax when you are charged a fee for parking. To find out if you’re eligible for a Parking Tax exemption, please refer to Bulletin 105 Motor Vehicle Parking and refer to Part 2 of the Parking Rights Tax Regulation. Residential Parking. Business Parking. Other Parking Situations. Parking Tax Resources. Parking Tax Forms.
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A parking lot tax applies to parking spaces for non-residential buildings anywhere within Montréal’s city limits. In parts of downtown, this tax is charged for both indoor and outdoor parking. In other areas, a parking lot tax is only charged in outdoor parking lots that are larger than 10,000 m 2 .
It’s official — thanks to TransLink and some fancy footwork by Finance Minister Colin Hansen, you’ll pay tax on tax when you park at least some lots in Metro Vancouver from now on.
- Overview
- On this page
- Determine if the benefit is taxable
- Calculate the value of the benefit
- Withhold payroll deductions and remit GST/HST
- Report the benefit on a slip
- References
- Fair market value (FMV) of a parking spot
- What is a CRA's administrative policy for the purpose of taxable benefits
- Cash
Content has been updated for clarity, completeness, and plain language.
The changes identified by the tags are effective January 1, 2022, and are identified with:
•Determine if the benefit is taxable
•Calculate the value of the benefit
•Withhold payroll deductions and remit GST/HST
•Report the benefit on a slip
Generally, parking you provide or reimburse to your employees is a taxable benefit. This includes situations where you provide parking to your employee at a cost that is less than the fair market value of the parking space.
What is the fair market value (FMV) of the parking space
FMV is the highest price that can be obtained in an open market between an informed and willing buyer and an informed and willing seller who are dealing at arm's length.
Generally, the FMV of a parking spot is the price that could be reasonably charged for the use of that spot in an open market (that is, the market price for a similar spot in the surrounding area). Normally, the cost to the employer is not a factor in determining the value of the benefit. For example, where the employer owns the lot, the value would be based on the FMV, not the employer's cost.
If the benefit is taxable, the value of the benefit is equal to the FMV of:
•+plus Parking
•-minus Any payment the employee makes to use the space
•=eqauls Value of the benefit
Example 1 – Calculations
The employer owns a property with a factory and parking spaces on the property. The FMV of the passes for each parking space is determined to be $200 per month ($2,400 annually). The employer provides the employee with access to the parking space. The employee does not pay for parking. The parking space provided to the employee is not required for business purposes. The parking is not available to the public and is not scramble parking.
Non-cash and near-cash: Option 1
Withhold: Income tax CPP EI (do not withhold) Remit: GST/HST in certain situations
Cash: Option 2
Withhold: Income tax CPP EI Do not remit: GST/HST Learn how to calculate deductions and the GST/HST to remit on benefits: How to calculate – Calculate payroll deductions and contributions.
Non-cash and near-cash: Option 1
Report on: Box 14 – Employment Income Box 26 – CPP/QPP pensionable earnings Code 40 – Other Information
Cash: Option 2
Report on: Box 14 – Employment Income Box 24 – EI insurable earnings Box 26 – CPP/QPP pensionable earnings Code 40 – Other Information Learn how to report the benefit on a slip: Fill out the slips and summaries – File information returns (slips and summaries).
Legislation
ITA: 6 Amounts to be included as income from office or employment ITA: 6(1)(a) Value of any benefit is to be included as income from office or employment ITA: 6(1)(b) Allowance for any purpose CPP: 12(1) Amount of contributory salary and wages ETA: 173 Taxable benefit is considered a supply for GST/HST purposes IECPR: 2(1) Amount of insurable earnings IECPR: 2(3) Earnings from insurable employment IECPR: 2(3)(a.1) Earnings from insurable employment – amount excluded as income under 6(1)(a) or (b), 6(6) or (16) of the ITA
FMV is the highest price that can be obtained in an open market between an informed and willing buyer and an informed and willing seller who are dealing at arm's length.
Generally, the FMV of a parking spot is the price that could be reasonably charged for the use of that spot in an open market (that is, the market price for a similar spot in the surrounding area). Normally, the cost to the employer is not a factor in determining the value of the benefit. For example, where the employer owns the lot, the value would be based on the FMV, not the employer's cost.
Generally, benefits that employers provide to their employees are taxable under section 6 of the Income Tax Act (ITA), unless specifically excluded in the ITA. The administrative policies of the CRA identify conditions under which some of these benefits may not be taxable. Our administrative policies are detailed in the specific topics.
Aug 7, 2012 · If the answers show that parking is a taxable benefit, the value of the benefit is subject to Canada/Quebec Pension Plan contributions and income tax deductions. If paid in cash, the benefit is also subject to Employment Insurance and Quebec Parental Insurance Plan premiums.
Generally speaking, employer-provided parking is a taxable benefit. I asked Kira if there are any exceptions to this rule. Kira: Legislatively, there’s the exception that if parking is provided for reason of disability, then it can be excluded from income.
Feb 2, 2024 · A parking lot tax is charged for parking spaces for non-residential buildings. In some areas of downtown, a tax is charged for indoor and outdoor parking. In other areas, a parking lot tax is only charged in outdoor parking lots that are larger than 10,000 m2.
