PITTSBURGH -- The impact of a compromise budget by Mayor Tom Murphy and City Council will be felt by commuters in less than a month.

Talk About Parking Tax

Effective Feb. 1, the city's parking tax will rise to 50 percent -- the highest in the country, by far. The hike was agreed on as a way to avoid other tax increases, layoffs and cancellations of youth sports programs.

Increases at all-day lots will range from $1 to $3, depending on location. Meter rates will double from 25 cents per half-hour to 25 cents for 15 minutes. Free two-hour parking after 4 p.m. weekdays and all day Saturday will be eliminated.

So what do the increase mean to a driver's wallet? Channel 4's Bob Mayo examined the figures at several garages.

One Strip District lot charges $5 per vehicle for all-day parking. The tax would bring it to $5.75, but the owner said he may cut into his own profit margin to avoid driving away customers away.

A half-block from the Downtown Kaufmann's department store, rates are currently $3 for up to 30 minutes. With the new tax, that would most likely rise to about $3.50. The maximum of $13 would move to approximately $15.

At Heinz Field, fans shell out $240 for 10-game lease deals. The tax would push that cost to $275 -- but in reality, customers should expect it to climb higher, because they don't call it the "gold" lot for nothing.

"A repressive tax like this only makes it that much more difficult to sell the product that we have," said Mariann Geyer, of the Pittsburgh Downtown Partnership.

"Increasing taxes in the city of Pittsburgh will only lead to more businesses closing," said Tom Michael, of Larrimor's clothing store. "We have an operation in Mount Lebanon. We're examing plans to move a lot of our operational staff out there."

But city councilman Alan Hertzberg said raising the parking tax is "probably one of the only ways we can create some pressure in Harrisburg to take some action."

The state has declared Pittsburgh financially distressed under Act 47, which carries the possibility of tax reform and a new fee on suburban residents who work in the city. It's not clear what tax changes are forthcoming, because the state has four months to put together a plan.

Without satisfactory action from the state, Murphy thinks the city's new budget may have to be re-thought by summer.