Encouraging tax-free commuter alternatives

TAX-FREE COMMUTER BENEFITS PROPOSED
Oct 14, 2009

TAX FREE COMMUTER BENEFITS FOR CYCLING AND CARPOOLING IS THE BASIS FOR A LEGISLATIVE AMENDMENT PROPOSED WEDNESDAY MORNING AT UVIC.

NEW DEMOCRAT MP DENISE SAVOIE SAYS THE AMENDMENT MEANS EMPLOYERS COULD REIMBURSE OR PROVIDE EMPLOYEES WITH UP TO 1 HUNDRED DOLLARS MONTHLY FOR COMMUTER TRANSIT, 2 HUNDRED DOLLARS MONTHLY FOR CARPOOL PARKING, OR 240 DOLLARS ANNUALLY FOR BICYCLE MAINTENANCE.

SAVOIE SAYS PARTICIPATING EMPLOYERS WOULD ALSO BENEFIT.

"AND FOR THE EMPLOYERS I THINK THERE'S HUGE BENEFITS. EMPLOYERS LIKE UVIC WILL BENEFIT GREATLY BECUASE IT'S GOING TO REDUCE THE ADMINISTRATIVE AND LOGISTICAL BARRIERS, IT'S GOING TO BUILD IN MORE FLEXIBILITY AND THEY WILL ALSO BE DISCOUNTING THESE AS BUSINESS EXPENSES FROM THEIR INCOME."

SAANICH COUNCILLOR DEAN MURDOCK USED UVIC'S BUSS PASS AS AN EXAMPLE OF A SHIFT TOWARD ALTERNATIVE TRANSIT.

"THIS LEGISLATION WOULD ALLOW EMPLOYERS TO TRANSLATE THAT MODEL, BY REMOVING THE ADMINISTRATIVE BURDEN OF SOME OF THE TAX FILING REQUIREMENTS THAT COME WITH EMPLOYER PAID BENEFITS FOR A TRANSIT PASS PROGRAM."
SAVOIE SAYS THE BILL MEANS TAXPAYERS WHO WORK FOR PARTICIPATING EMPLOYERS WOULD BENEFIT FROM THE HIGHEST PERSONAL INCOME TAX RATE.

SHE WILL INTRODUCE THE AMENDMENT MONDAY.

- LIZ MCARTHUR - CFAX 1070