To remedy the city’s roughly $12 million structural budget deficit, the Monterey City Council has recently considered numerous strategies, including scrapping neighborhood improvement projects and two tax measures to be placed on the June ballot.
On Jan. 28, 2026, the council directed city staff to draft ballot measures to increase sales tax by 0.375 percent, which sunsets in nine years, and an 8-percent parking tax. The council voted in February to place the sales tax measure on the June 2 primary ballot, while the parking tax was considered for placement on that ballot at a council meeting on Tuesday, March 3.
At the March 3 meeting, City Finance Director Rafaela King explained that the 8-percent parking tax would only apply to privately owned lots in the city with some exemptions, including parking facilities associated with residential buildings intended for long-term residents. King said that with about 1,400 taxable spaces, the potential parking tax would bring in between roughly $372,000 to $745,000 in annual revenue for the city.
Following King’s presentation, Mayor Tyller Williamson asked whether they could add public parking lots to the measure. City Attorney Christine Davi explained that an overhaul of the ordinance as written would take substantial effort and would likely not be prepared by the March 6 deadline to place it on the June ballot.
During the public comment period, representatives from the business community expressed concerns about the potential measure, such as Michael Zimmerman of the Cannery Row Company, who said the tax was unfair because it only applies to privately-owned lots. He said the estimated revenue from the measure is “grossly overstated.”
“You’re not going to get the revenue you think you are,” Zimmerman said. “Not even close.”
Councilmember Jean Rasch said that she felt those who commented had valid points and proposed a motion update the proposed measure to include on taxing public parking lots in addition to private lots, and to push the timeline to consider placing it on the November ballot.
The motion to table the parking tax until November passed unanimously.