By:Leslie Gonzalez
Proposed legislation could save $700 a year in taxes
Long Island commuters may soon be able to save hundreds of dollars more per year, thanks to newly proposed legislation that could more than double federal mass transit benefits.
The Commuter Benefits Equity Act of 2001 was introduced in the U.S. Senate by Sen. Charles Schumer of New York and is designed to save hundreds of dollars per year in transportation costs while also reducing traffic and air pollution. Officials hope the legislation will give commuters an added incentive to get off the road and on the train.
The increase would bring the mass transit benefit up to the same level as the federal benefit provided to employers to help cover employee parking costs. Schumer publicly unveiled and explained the new legislation on Feb. 26 at the Long Island Rail Road station in Mineola.
"If we can make mass transit financially attractive, many commuters will be more than happy to leave their car keys at home," Schumer said.
The proposed legislation would increase the amount of pre-tax income commuters can set aside for mass transit expenses from $780 to $2,100 per year. Employees would ask their employer to have their commuting expenses deducted monthly from their salary. The deducted amount would not be taxed. Alternatively, employees could pay all their own commuting expenses. When they file their income taxes, they would be allowed to deduct their commuting expenses, up to $2,100 per year. "You would get this even if you didn't itemize," said Schumer.
Currently, employers are allowed to set aside from employee paychecks an untaxed $175 per month when they commute by car, but only $65 if they use mass transit. By increasing the size of the mass transit benefit to equal that of commuting by car, employees could save over the course of the year $700 in taxes.
"We simply have to do more for more than 100,000 Long Islanders who take the train into Penn Station each day," Schumer said. "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. Employees shouldn't be penalized when they leave the car at home. We're just equaling it up."
Commuters who travel from Lynbrook and Malverne to Penn Station spend $135 for a monthly ticket, while East Rockaway train travelers pay $154.
Mike Doyle, associate director of the Permanent Citizens Advisory Committee to the MTA, joined Schumer in announcing the legislation. The committee represents MTA's seven million riders, and is also known as the LIRR Commuter Council.
"We strongly support this," said Doyle. "It is something that would be great for the socioeconomic health of Long Island and New York City."
Currently, more than 10,000 employers representing 300,000 Long Island employees offer the program. However, only 25,000 Long Island commuters take advantage of it. Schumer expressed confidence that more employers will offer the expanded benefit. In 1998, when the federal transit benefit was increased to $65 and New York City transportation authorities created the MetroCard, the number of companies offering transit subsidies increased from 8,000 to 13,000 in just two years.
Officials say the bill would also help bring relief to those who drive in and around New York City, where traffic delays have increased dramatically. Commuters find themselves spending more time in the car and less time at the dinner table.
The bill has received bipartisan support and the endorsement of groups from the Sierra Club to Environmental Defense to the U.S. Conference of Mayors.
The Senate is expected to vote on the legislation by June. If passed, the benefit will apply to all mass transit riders nationwide, including the LIRR, New York City subways and Metro North.
