The Toronto Police Association says all 8,300 officers on the Toronto force will end up paying to park at work - even if they don't drive.
Association president Mike McCormack says Canada Revenue Agency has decided that having the option to park at police stations is a taxable benefit.
Mr. McCormack says the taxman is looking for three years back taxes and that could amount to "thousands of dollars" for each officer.
He says the parking at police facilities is available for a number of reasons, including security.
And he says because policing is a 24-7 operation public transportation simply isn't available for many officers.
Mr. McCormack says Canada Revenue Agency hasn't put a value on parking yet, but he says the taxes will have to be paid before the association can appeal the ruling.
"We're waiting to get that number before we can appeal the decision," Mr. McCormack said Tuesday.
McCormack said the city has paid a compensation package for some employees that includes parking.