The Annapolis city council voted unanimously Friday to enact a one-year extension of the parking permit sales tax extension, which ends in December.
The extension, first passed last year, originally expired in December. This year, the city council votes to extend the sales tax for a one-year period.
The city will continue to collect the income for parking permit sales tax for the next fiscal year, but the tax will be removed for years 2018-19 and for the fiscal year after that unless elected officials vote to continue it.
The ordinance will begin the process of creating a temporary amendment to the general municipal election ordinance that would temporarily sunset the parking tax. The amendment must pass through several committees before being adopted by voters in the 2018 general election.
The annual pass program has collected roughly $1.7 million since its inception in 2016. The city will now again collect an annual tax on parking tickets, but exempt the discounted rate for permit holders and turn over the revenue to the Maryland Association of Counties. The revenue is about $1.2 million, the county said.
The tax is also used for a program that uses local rent-in agreement for residents to secure parking.
According to the Maryland Transportation Authority, 15-20 percent of Annapolis vehicle owners exceed the 1.5-day annual pass maintenance requirements. Annapolis cars are exempt from the license plate collection program.