Car share vehicles should be let off paying a $2350 annual tax on car parks in Sydney's busiest areas such as the central business district, it has been argued in submissions to a review into the levy.

The levy has also been a bone of contention for small businesses after it was expanded to include commercial and office car parks in areas such as the inner-city suburb of Pyrmont seven years ago. It has also hit some apartment owners who own spots in nearby commercial car park buildings.

First introduced almost 25 years ago, the levy on a car park in Sydney's CBD and North Sydney now amounts to $2350 a year. So-called category-two areas Bondi Junction, Chatswood, Parramatta and St Leonards have a lower annual rate of $850 per space.

The NSW government has a review under way into the levy on off-street commercial and office parking spaces, the aim of which has been to help fund public transport and reduce road congestion by encouraging people to ditch their cars.