Vancouver proposes fee hikes for parking, rideshare, short-term rentals

City of Vancouver proposes fee hikes for parking, rideshare, and short-term rentals

Vancouver City Hall (Shutterstock)

In a bid to reduce pressure on increasing taxes further, City of Vancouver staff are proposing various potential fee hike measures for Vancouver City Council’s consideration in the 2024 budget.

This follows City Council’s previous direction earlier this year asking City staff to report back on options to increase fees in areas such as business, dog, food truck, permit parking, and on-street parking licenses. According to the municipal government, based on previous public consultation, residents and businesses prefer new or increased used fees for services, rather than increases to the property tax.

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Standard business license fees would grow from the existing rate of $171 to $250 starting in 2024, which will generate $1.6 million in additional annual revenue.

Trades and contractor license fees would go up from the current rates of $171 and $250 to a new flat rate of $340. This will increase annual revenues by $900,000.

Short-term rental business license fees, such as for Airbnb, would also increase from $109 to $450 to generate $1 million in additional annual revenues.

There would also be higher costs to get around by vehicle.

On-street curbside parking rates regulated by meters will see expanded areas, resulting in a $4.8 million increase in annual revenue.

Residential street parking permits would increase from the current range of $52 to $104 to a new range of $65 to $131 on an annual basis. This will result in $200,000 in additional annual revenue.

The park board’s separately managed parking supply within its parklands and community centres would also see unspecified changes, resulting in $500,000 in additional annual revenue.

Fees for ridehailing operations would also be doubled over two years. Currently, each trip on Uber and Lyft carries a $0.30 fee, and the proposal now is to increase this rate to $0.45 in 2024 and $0.60 in 2025. By 2025, the increases will lead to $3 million in additional revenue on an annual basis.

Increases to the commercial vehicle decal program for curbside deliveries of goods and services will see an increase that more than triples the annual permit fee for users — up to $150. This will generate about $1 million in additional revenue annually.

Potential sponsorships, advertising, naming rights, and donation opportunities could potentially raise $500,000 annually.

The combined fee and permit rate hike measures could potentially result in $15.2 million in new additional revenue for the City starting in 2024. This would be equivalent to a 1.4% property tax hike, effectively offsetting the increase in property taxes to balance the 2024 budget.

This follows City Council’s controversial approval earlier this year of a historic 10.7% average property tax increase for 2023.

At the time of the 2023 budget approval, City staff suggested an average property tax hike of 8.6% annually would be needed between 2023 and 2027 due to the headwinds of continued high inflation and growing cost pressures. Over the same period, the City’s operating revenues and expenditures would go up by an average of 7% annually.

In 2024, the City’s operating expenditures are expected to reach and cross over the $2 billion mark for the very first time — 13 years after it initially reached and crossed the $1 billion mark.

Over the coming weeks, before early October 2023, separate from the work of City staff, the Mayor’s Office’s independent task force on identifying efficiencies and duplications and potential new revenue opportunities is expected to release its final report publicly for City Council’s consideration.

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