Free parking should be reported as income, as should mass transit discounts/subsidies, such as healthcare subsidies, etc.
I'm trying to figure out the mental somersaults it has to take for this to seem reasonable to you.
The natural state, empty field, nothing there. I can park there. For Free.
Unnatural state, roads and buildings. My ability to park has been taken. I've had value taken from me. I'm at a negative.
Government / businesses grant the right to park in some places. I'm at less of a negative but still negative of the natural state. I don't see how that's possibly putting me at a positive "income"?
The mastodons and giant sloths did not claim property rights over the land.
That's not the "default" state.
If your business is located next to a parking garage that costs $400 a month to park in, and it pays the $400 each month so you can park for free, that's income to you.
Imagine your CEO makes $1M a year. But he tires of his high marginal tax rates, so instead negotiates with the board of directors to only take a $500k salary while the company pays a $5,000 a month lease on his $200k car, a $20,000 a month rent on his $2M condo, and $200,000 a year for his parking, premium healthcare, meals, groceries and personal travel expenses.
Should he only pay taxes on his $500k in cash compensation now?
I could never quite figure this out. It seems to be actually more hassle, in terms of paperwork and reporting, to pay for your employee to park a work vehicle during work hours while on a job made at your request (which is entirely a business expense) than it is to pay for them to have a reserved city centre parking space (which could easily have a significant personal benefit component).
The other weird thing is: I don't even think the employee has to use it! Would their SO find such an arrangement useful? Well, there you go: they could use it instead! There really don't appear to be any restrictions on this stuff. It's extraordinary.
On the flip side: this does mean, if you're negotiating a new job, maybe you could think about trying to get them to pay for a parking space for you, if that would be useful. Because it's entirely a business expense and so cheaper than raising the salary.