Mobilizing the Region
Issue 193October 23, 1998



Gov'ts to Credit Transit Riders


The NYC City Council has drafted a bill to require NYC to offer TransitChek to city workers. A hearing on the bill is scheduled for Monday (Oct. 26) at 10 a.m. The Council also hopes to pass a resolution commending private companies that have offered TransitChek to their employees.

The TEA-21 legislation passed by Congress and the President significantly eased barriers for employers to offer workers the federal $65 per month tax credit for commuting to work by transit. Transit advocates and elected backers of the legislation have hoped that city and state governments will take the lead in offering the benefit to public workforces. This would publicize the program and its benefits to our transit-dependent region, and provide additional incentive for thousands of commuters to ride trains and buses.

In New York City, a typical city employee receiving the transit tax benefit would see the real cost of a monthly transit pass fall from $63 to $45. Additionally, the city could make modest savings in payroll taxes. NYC Transit could also see additional revenues as commute-only transit riders upgrade to monthly passes that are made more affordable by the tax benefit.

The City Council's interest in the issue is a good sign, though it's unclear whether its proposed legislation will be necessary to move the program. Reportedly, both New York City and State officials have expressed interest in making TransitChek available to public employees, although it's unclear what the time-frame for implementing the benefit might be.

Westchester County looks likely to have the jump on both City Hall and Albany. It's reported to be close to finishing negotiations with unions representing county workers on the issue, and may be able to offer the transit benefit early in the new year.

 

 





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