Employers in Nottingham who provide workplace parking have to begin applying for a parking levy licence.
All firms within the city council's administrative boundary will need to apply for a license for parking places they provide from Friday.
The estimated annual £279 charge will be applied to businesses with 11 or more parking spaces from April 2012.
Companies will have until 1 October to register and some of the money raised will go towards the tram extension.
Firms with 10 or fewer workplace parking places will not have to pay anything, although they will still need to get a licence.
Registering false details or blocking council officers will be a criminal matter but not having a licence will be a civil offence, firms have been told.
The council confirmed automatic number plate recognition technology would be used to monitor car parks when making some checks.
Councillor Jane Urquhart, portfolio holder for planning and transport, said: "This is an important milestone for the scheme and it is important that all businesses across the city's boundary understand that they need to hold a Workplace Parking Levy licence by the 1st October if they provide any workplace parking places at their place of work."