Airport to Pay Parking Tax Under Protest

The Burbank airport authority will pay the city the first installment of an estimated $1.2-million parking tax under protest, but in time to beat an April 30 deadline, the authority president said Tuesday.

“By law you have to,” said Carl Raggio, president of the Burbank-Glendale-Pasadena Airport Authority. “That’s a city ordinance. But you have a right to protest what you pay.”

The new parking tax, which is among the issues covered in ongoing closed door sessions by the airport authority and Burbank city officials, could result in litigation, officials said.

“The airport authority is deeply concerned about the tax and is exploring all its options,” said Victor J. Gill, an authority spokesman.

A city ordinance calling for a 10% tax at profit-making parking facilities in Burbank became effective Feb. 1, with the first-quarter payment due by the end of April. The ordinance applies citywide, but the vast majority of parking for paying customers exists in or near the airport.

Officials said the airport generates about $12 million in parking revenues a year. So far, the parking tax would apply to February and March, resulting in an estimated first payment of $200,000 by the authority, they said.

Failure to pay by the deadline would increase the ultimate cost of the tax through penalties, and could bring legal action from Burbank, officials said.

Raggio said he believes that by paying under protest the authority maintains its legal options.

“If you win, then there’s a rebate to you,” he said. “It’s important to say we have complied with the ordinance.”

The airport might pass the tax along to customers, absorb it, or try to negotiate, airport officials said.

“At present there is not a rate increase reflected in the budget,” Raggio said. “We may not have to do anything. . . . You have to wait and see what kind of, quote, ‘deal’ you can make with the city of Burbank. We don’t know yet.”

Hourly parking costs $1 for the first three hours, then $3 per hour after that with a maximum cost of $24 per day. Valet parking costs $5 per hour, with a maximum per-day cost of $16. Long-term parking costs $8 per day.

Burbank has been fighting planned expansion of the airport out of concern over traffic congestion and noise. The airport is in Burbank, which shares control of the facility with Glendale and Pasadena.

In March, federal officials approved plans for a new, expanded passenger terminal, but Burbank officials said they would sue to block the project unless mediation resolves disputes over size and noise.

Officials said the parking tax has also been discussed in mediation sessions.

Stephen Helvey, assistant city manager in Burbank, said the authority had not yet notified the city of its intentions to make the payment. It was unclear what, if any, rights the authority reserved by paying under protest, he said.

“We’ll still cash the check,” Helvey said. “I’m glad to hear they’re going to pay it.”