Transportation authority applauds tax parity for transit riders and parkers

Local transit officials are praising Congress for its recent approval of a public transit commuter benefit.

According to the New York Times,  “those who commute to work using mass transit or van pools are eligible for the same amount in employer-provided pretax commuter benefits this year as their colleagues who drive and park, thanks to the fiscal package passed by Congress”  in January.

“Workers whose employers offer such benefits can pay for their monthly transportation costs through pretax payroll deductions, saving them money,” the Times reported.

“This measure removes the financial bias against public transit commuters,” Kansas City Area Transportation Authority General Manager Mark Huffer said. “This has always been an issue of fairness, and public transit advocates are pleased that the federal tax code will again provide transit riders with the same tax benefits as those who drive to work.”

The legislation passed by Congress was part of the fiscal cliff negotiations, but is not a permanent change.

Details

• The KCATA says the legislation includes monthly passes purchased through the Transit Riders’ Incentive Plan (TRIP). TRIP allows employers to provide discounted monthly passes to employees on a pre-tax basis. The company reduces its payroll tax, and employees enjoy the pre-tax savings. To learn more about TRIP, companies can call KCATA at (816) 346-0274 or email metro@kcata.org.