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American Public Transportation Association

 To Rep. King Supporting His Introduction of H.R. 990 Which Provides Equal Tax Treatment for Transit Riders and Parking Benefits

 2/25/2015

The Honorable Peter King
United States House of Representatives
339 Cannon House Office Building
Washington, DC 20515​

Dear Congressman King:

On behalf of the American Public Transportation Association (APTA) and its more than 1,500 member organizations, we are writing to thank you for introducing H.R. 990 which provides equal tax treatment for transit riders and parking benefits. APTA believes that it is sound policy to maintain both the public transit and parking benefits at equal levels, and we strongly support your legislation.

Absent Congressional action to extend parity for 2015, the transit commuter benefit dropped to $130 per month, while the parking benefit remained at a level of $250 per month. Commuters who use public transportation and especially those with the longer commutes by rail, bus, or van pools have seen their annual commuting cost increase by up to $1,380 a year based on a bias in the tax code that eliminated the parity between public transportation and parking benefits for auto users. This equates to a higher tax and added costs for those who take public transit.

By offering pre-tax transit benefits to employees, businesses realize savings from reduced payroll taxes. Transit tax benefits are also a valuable employee retention tool. In addition, the use of public transportation reduces traffic congestion and harmful emissions, and by ending this disparity in the tax code, Congress can make an impact on congestion in heavily travelled commuter corridors.

Thank you again for your leadership on this issue. Passage of the H.R. 990 will allow the tax code to treat both modes equally, and not favor one over the other. If you have any questions, please have your staff contact Channon Hanna of APTA’s Government Affairs Department at (202) 496-4810 or email channa@apta.com​​.​
Sincerely,

Michael P. Melaniphy
President & CEO
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