| Issue 307 | March 5, 2001 |
A
bill introduced by NY Senator Charles Schumer would increase the amount
of pre-tax income employees could set-aside for mass transit and van-pooling
fares. The bill, "the Commuter
Benefits Equity Act" which Schumer introduced with Sen. John Warner
of Virginia, a senior Republican on the Environment and Public Works Committee,
would hike the monthly pre-tax transit spending ceiling to $175 per
month starting in 2002. The current transit limit now is $65 per month,
far below the pre-tax $175 per month federal law now allows car commuters
for parking benefits.
In New York and Connecticut, the pre-tax provisions also apply to state taxes.
"The mass transit subsidy program is a great idea, but it is undermined by the fact that we provide a parking benefit that is much more generous," Schumer said at a February press conference in Mineola. "My proposal rewards commuters who choose mass transit and makes drivers think twice about getting in their cars. For Long Island commuters who use the LIRR, this increase could mean hundreds of dollars per year in savings."
The bill was also introduced in the House by Massachusetts Rep. James McGovern. The legislation is so far co-sponsored by a wide range of the region's Senators and Representatives, including CT's Senator Christopher Dodd and NY Representatives Maurice Hinchey , Carolyn McCarthy, Jerrold Nadler and Edward Towns.
-Pataki Proposes TransitChek for State Workers-
A provision in Governor Pataki's 2001-02 executive budget would extend the pre-tax transit benefit to NY State employees. New York City already offers the benefit to many city workers. Governor Rowland has proposed the same for Connecticut state employees (see MTR #290). A New Jersey bill would also give state workers the federal transit tax benefit, but it has not been approved by either house of the Legislature.
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