As thousands of concertgoers streamed into the Richmond District over the summer for Outside Lands and Hardly Strictly Bluegrass, several neighborhood schools saw a chance to raise some much needed funds by opening their lots to concert parkers.
Schools like Lafayette at 36th & Anza, Argonne at 17th & Cabrillo, and Presidio Middle School at 30th & Geary charged $25 a day for parking, helping relieve parking stress on the streets around Golden Gate Park. And in the process, they raised thousands of dollars for their school programs.
The Examiner reports today that all this fundraising success has caught the eye of the city taxman – aka the Treasurer and Tax Collector’s Office – who now wants his cut.
The city tax office is demanding a 25% cut of the profits made during the parking fundraisers. That’s a substantial slice – as much as $1,750 a day – of the money that these schools raise during the events.
“We had no idea,” said San Francisco Parent Teacher Association President Michelle Parker. “They haven’t been collecting it until now anyway.”
Treasurer’s office spokesman Greg Kato says that the law to collect tax on parking structures has been on the books for a while now and “applies to every parking operation, from downtown garages to dirt lots near the ballpark.”
But those are for-profit parking operations. Should the same tax be levied on a non-profit fundraiser that uses property that is normally not a parking facility?
Seems to me that the money is better spent going back into the cash-strapped coffers of our local schools than into those of the SFMTA, who stands to profit if the 25% tax is enforced on these schools’ fundraisers. Something tells me the money that lands in the SFMTA pot will never makes it way back to improving our schools.
PTA President Michelle Parker also points out that the parking fundraisers are a great way to earn more funds without, shall we say, taxing the immediate community. “What’s really great about parking fundraisers is you’re not pulling from the school community,” said Parker.
What do you think? Should these schools be expected to pay a 25% tax to the city on their parking fundraisers? Is this justified…or just plain greedy? Leave a comment to let us know.
Thanks to RichmondSFBlog reader Bob for the tip.
Sarah B.
[via The Examiner]
NO! The city has taken from the schools budgets, so if the parents want to do a fundraiser, they should not have to pay the city (from one pocket to another). If the SFMTA can figure out any other parking opportunity for these big events, then they can open thier own parking lots. The schools should be able to keep all the money.
Gods!!! Let the schools keep the money, you greedy bunch of SCOUNDRELS!!
I feel that using the parking lots has several positives. Concert patrons have secure nearby parking. Less cars try to park on neighborhood streets with fewer cars blocking driveways and illegally parked. The schools make much needed money and the students get experience helping to run the operation of the parking lot. Now the City wants to have part of the profit from a group of students and volunteers who donated their time to help the schools. Sounds like a civics lesson for the students. Aside from the easy cash, the Treasurer may also be concerned that a precedent will be set for the future. However wrong it may seem, legally the City is entitled to the tax money. Most likely the Supervisors will have to address this issue and hopefully let the schools keep all the money raised.
whatever we all feel it really needs to be above the board. we can’t just say that schools shouldn’t pay this tax because we feel that way. they can’t ignore the law.
what we need is a creative interpretation of the law 🙂
there’s something to be said for investigating the not-for-profit aspect. maybe they need to retroactively amend that tax policy to give tax-exemption to schools.
One note: these parking lot fundraisers did not charge a set daily/hourly fee; they requested a tax-deductible donation to the PTA/PTSA (all of which are 501(c)3 nonprofits). Some people donated over and above the suggested donation amount.
As a parent at one of the schools affected, I’m really disappointed that the city government has done this, and I’m angry at the way they handled it — no notice, just showed up and demanded a cut of the donations. That said, our principal reports that SFUSD attorneys are working with the city to figure it all out.
And the city government wonders why families leave the city…
Thanks, Cath for the update. Yes, let’s hope this gets sorted out. The city looks really greedy when they try and stick their hands into the schools’ cookie jars. 🙁 “We don’t have funds to help you but if you try and raise them yourself – we want a piece!”. Ick.
Sarah B.
A big NO from me too. If these were for profit organizations it would be a completely different story. But these are volunteers running a fundraiser to provide the much needed funds to San Francisco public schools. They are helping to bridge the gap created by the huge budget cuts. They should not be taxed!!!
Can’t help but think that this is an injustice. Hope it gets worked out to the schools’ benefit.
I think this is shameful of the city. The school did us a huge residents a huge favor by giving the concert-goers a place to park! Maybe the best solution is to let it slide this time but next yr for teh school to do it but pay the tax…sounds like the school would still hugely benefit.
this tax is going into someone’s pension…disgusting
Does the city tax other money raising programs of the PTA? Why should a parking operation be different?
And, phil, city employees deserve pensions just as much as you and I do.
There’s another scam-angle here – at least 100 people got their cars towed on the Saturday and Sunday of HSB, from the south (Golden Gate Park) side of Fulton Street just west of 37th. When we parked there (I’m one of those affected), there were no signs indicating parking restrictions, but later in the day it seems someone set out sawhorses with “no parking/tow zone” signs and then the city ticketed and towed dozens of cars. The ticket costs $55; the tow is over $500! I had returned to my own car twice and verified each time that there were no signs; city law requires a minimum of 24 hours advance posting before a tow-zone can be considered “legal.” We’re all protesting the fine and tow, but it’s taking hours of time and many of those affected are not local and have difficulty arranging to make their protest in person. Now I wish I’d parked at Lafayette where my kid goes to school…. I’d rather give the city 25% of $25, than 100% of $560….
One thing that hasn’t been mentioned is that cars do a lot more damage to paved surfaces than kids running around, so I think it would be fair for some of the money to go to the eventual resurfacing. We’re about to go to the polls to decide whether the city should borrow a half-billion to rebuild schools, so paying it a parking tax doesn’t seem worth arguing over.
Also, I think the tax is supposed to offset the city’s costs of traffic like accident response and road maintenance. So I don’t know if it makes sense for nonprofits to be exempt.
Our office is looking at this issue and trying to find a solution. Supervisor Mar is looking into how the PTA’s can lessen their tax burden.
Linshao
Legislative Aide
Supervisor Eric Mar
Ya gotta marvel at the Chutzpah of the schools, charging $25 a day for parking. And you gotta give credit to MUNI, arranging numerous shuttles and running additional 5-Fulton buses for just $2 a pop.
But we can all sleep well tonight knowing SFUSD attorneys are on the job, busy trading briefs with their City attorney counterparts 😉
Can everyone believe how quickly the weather changed from Sunday to Monday!? Ya gotta be a hardy, and an adaptable soul to make in SF, especially the Richmond. Let’s all practice gratitude for our homes and neighbors in this wonderful corner of the world….
I am curious, does the Zoo have to pay taxes for what they charge for parking? If yes, what is that percentage?
As to the schools charging $25 a day, still cheaper than anywhere downtown or at the Wharf. Not to mention, it’s cheaper than paying for a ticket or a tow.
How greedy and heartless can they get at City Hall? They should be encouraging this kind of community effort. The schools get money, concert goers get parking, and the neighbors get their streets back. It’s a win-win-win.
If they taxed a school-sponsored car wash in the parking lot, then maybe I could see them taxing the parking “event”. Funny how they seem to pick and choose which PTA-sponsored event from which to take their pound of flesh. As to the mass towing near Golden Gate Park, I wouldn’t put it past the City to use it as an underhanded way of generating revenue. I love SF, I love the Richmond but sometimes I cannot stand our local government. I wish SF could have some common-sense governance instead of the crazy liberal/progressive stuff sometimes…. but that’s for another post. Good luck kids! Support public schools everyone. 🙂
RussellSprouts may want to do the math- MUNI is $2 *per person* *per ride*, since the transfer will expire before the return trip. And, you can’t bring coolers, folding chairs, blankets etc if the bus is crowded. So if you have 3 people in your car, most people will say their time is worth more than the $7 they would save spending two hours there & back on MUNI..including hours waiting to get on crowded buses and standing the whole way.
As to the parking issue- it is ironic these lots are staffed by parent volunteers, and would not even exist if not for parent volunteers. Are they volunteering to earn money for the city, or for the kid’s school? Our middle school in Now is looking at this issue now, as we have been made an offer by the Noe Farmer’s Market to provide weekly parking. It would be win-win for both the school and the neighborhood farmer’s market, except that the school would not get the money. How are we going to get parent volunteers on a weekly,ongoing basis when the school does not even get the cash?
It should be an easy fix for the Board of Supes to waive from these tax requirements volunteer-run, nonprofit parking lots that operate, say, less than times per year. There already are similar exemptions from business permits/taxes for occasional yard sales. And it should not be hard for the School Board to allow schools to keep the money providing there is liability insurance paid for by the school (most formal PTA groups already have this as part of their membeship in the national PTA)
I’m setting up a 501(c)3 and just read the instructions regarding this very issue, and the IRS uses bake sales as an example, proving that this is not a for-profit endeavor and therefore non-taxable. If the IRS doesn’t want the school’s money, why does the city?
I hope there is a good lawyer parent able to help the schools out.
Actually, I have a better idea: Stop putting on ridiculously large concerts right in the middle of a residential neighborhood! There’s no parking because this park, on this side, wasn’t built for 3/4 of a million people and amplified music across the street from homes.
If Rec and Park wasn’t so greedy, the concerts could be held at Kezar and Sharon Meadow, away from residences where grandmothers who live there are trying to nap, and closer to merchants on Haight who would probably love the extra business.
@Jill – please leave the anti-concert comments in the various other posts in this blog on that topic. This discussion is about taxes and whether the school or the city should get that money. Frankly, we are all tired of the anti-concert comments. All of those points have already been delivered ad nauseum. But thanks for supporting our schools.
Please send comments re. parking, crowds, and all other concerns about the Golen Gate Park concerts to Supervisor Eric Mar at eric.l.mar@sfgov.org. Thank you.
#11 Dan- Unfortunately some miscreants took down the no parking signs which were indeed posted for the required time. This is why the temporary saw horses were set up.Not all signs were ripped down. With the city poor when in doubt don’t park there. Sad to say the parking control folks have no latitude, they have no way of knowing there were no signs there when folks pulled in. As BJ said best also to contact Eric Mar with concerns! Lets light his switchboard up!
This is just ridiculous. The City of San Francisco should be grateful that these schools took the initiative to raise funds, thereby diminishing the need for higher property taxes for property owners. Families are leaving SF in droves because they can’t afford to I’ve here. We should support any effort to keep them here.
NO! Did the city provide 25 percent of the staffing, signage and other expenses? No.
No, Mister Tax Man. Put your greedy hand back in your pocket.