All six of the region’s senators are standing behind legislation to avoid an impending “transit tax hike” that would affect many commuters. Under federal law, commuters can use up to $230/month in pre-tax income to pay for parking (this will rise to $240/month next year due to a cost-of-living adjustment). Since 2009, transit commuters have received a benefit of the same size. But the legislative language setting the benefits equal to each other is set to expire at the end of this year, dropping the transit benefit down to $125/month.
A bill sponsored by Sen. Chuck Schumer, the Commuter Benefits Equity Act (S1034/HR2412), would permanently bring the transit benefit up to $240/month. It has been co-sponsored by Senators Gillibrand, Lautenberg, Menendez, Lieberman, and Blumenthal. It was introduced by Rep. McGovern (D-MD) in the House and has 45 co-sponsors, including many from the tri-state region.
“The last thing we should be doing in this economy is making it more expensive for New Yorkers to get to work,” Sen. Schumer said at a Nov. 7 press conference at Grand Central Terminal in NYC.
If the transit benefit drops to $125/month, it would affect many commuters who pay more than that for transit. These include:
- Many commuter rail riders on NJ Transit, the LIRR, Metro-North, and Shore Line East. For example, a monthly pass between Newark Penn Station and Metropark on NJ Transit costs $168, and a monthly LIRR ticket between Hempstead and New York Penn Station costs $223.
- Express bus riders in NYC, who pay $50 per 7-day unlimited MetroCard, or over $200/month.
- Many NJ bus riders on private and NJ Transit lines commuting to the Port Authority Bus Terminal. For example, a monthly bus pass between NYC and Cresskill, NJ (in Bergen County) is $183.
- Those using multiple forms of public transit, such as a Jersey City resident who pays $65/month for the PATH rail system and also needs a $104 monthly MetroCard to commute to work in NYC.
Human resources departments throughout the region have already begun receiving notices that they should begin planning for the expiration of the benefit. TransitCenter has launched a website, CommuterBenefitsWorkForUs.com, where citizens can contact members of Congress on the issue.
Photo: Natasja Sheriff/Transportation Nation.
Maintaining an even commuting field is a worthy goal. Given the federal budget situation a better solution might be to lower the parking benefit to $125 or abolish both the parking and transit benefit. Losing the transit tax credit would not be as bad as future reductions in federal transit formula assistance.
[…] our region—Senators Schumer, Gillibrand, Lautenberg, Menendez, Lieberman, and Blumenthal—have sponsored legislation to permanently increase the transit benefit (S1034/HR2412), and were among a group of […]