Printer Friendly

FEDERAL/STATE GOVERNMENTS LURE TRANSIT RIDERS WITH TAX-FREE SUBSIDIES

 LOS ANGELES, Jan. 22 /PRNewswire/ -- The Los Angeles County Transportation Commission (LACTC) has outlined two new programs, one from federal legislation the other initiated in Sacramento, that will give additional cost-savings to many Southland workers that commute by public transportation.
 The programs were outlined in a press conference on Friday with LACTC member Ray Grabinski and State Assemblyman Richard Katz.
 The federal program, which became effective Jan. 1, 1993, increases the tax-free federal transportation subsidy for each employee to $60 per month from the $21 per month per employee received in 1992. Employers can write off the subsidy as a business expense tax deduction.
 "This subsidy nearly triples the monthly subsidy for commuters who take public transportation," said Neil Peterson, LACTC executive director. "This allows workers to get $720 per year to put in their pockets, tax free."
 Ridership on the Metro Blue Line and Metrolink commuter trains has been increasing thus far in 1993. Metrolink is now carrying about 4,000 passengers per day, double the expectations at this point.
 "Our recent rainstorms have had a positive impact on the number of commuters using our public transportation. They realized that using it saved them time and spared them the hassles of freeway gridlock. These new programs provide additional incentives to riders who can take advantage of our three rail systems: the Metro Blue Line, Metrolink and the new Metro Red Line, the subway that opens next weekend," said Ray Grabinski of the LACTC.
 A second program that benefits both employers and their employees was introduced in the California Legislature by Assemblyman Richard Katz. It requires certain companies with more than 50 workers who currently make out-of-pocket payments for employee parking to offer those employees a cash allowance equivalent to the parking subsidy the employer would otherwise provide.
 The new state law, which has also been in effect since Jan. 1, 1993, requires certain employers of 50 employees or more to offer a cash transit allowance to an employee equivalent to any parking subsidy being provided. The employer will enjoy a tax deduction and get full Regulation XV credit from the South Coast Air Quality Management District for each employee who accepts a transit pass and gives us their parking. The employee can receive a cash subsidy from the employer in lieu of subsidized parking.
 "We are giving workers the choice of getting out of their cars and on to mass transit where they'll miss freeway gridlock and help clean the air," Katz explained. "This plan further saves money when compared to the costs of operating a car in California -- such as gasoline, insurance, and maintenance."
 "We expect both companies and employees to take advantage of these programs," said Peterson. "Employees using the subsidy will be able to save money when buying tickets for Metrolink, Metro Blue Line, Metro Red Line, buses and other mass transit services."
 MONTHLY PARKING RATES FOR DOWNTOWN AREA
 Broadway Plaza (7th & Flower) $143-193
 ARCO Plaza (400 S. Flower) $165
 Century Parking
 (On Flower, between 7th & 8th) $125
 Two lots at corner of 2nd and Hope $130
 Lot at Pershing Square
 (On Olive, between Wilshire & 7th) $165
 World Trade Center (Figueroa) $165-203
 MONTHLY SAVINGS FROM TRANSIT SUBSIDIES
 Metrolink 30-Day Pass
 (Chatsworth to Downtown Los Angeles)
 30-day Metrolink pass $144
 Federal tax-exempt subsidy $60
 Typical Downtown parking subsidy $60
 Net monthly cost to employee $24
 -0- 1/22/93
 /CONTACT: Ed Coghlan of LACTC, 213-765-2112; or Russell Bell of Office of Assemblyman Richard Katz, 818-894-3671/


CO: Los Angeles County Transportation Commission ST: California IN: SU:

BP-MS -- LA025 -- 6122 01/22/93 20:10 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 22, 1993
Words:597
Previous Article:U.S. BANK OF WASHINGTON RECEIVES SBA 'GOLD MEDAL' AWARD
Next Article:ALCO INTERNATIONAL ANNOUNCES SEC PRIVATE INVESTIGATION
Topics:


Related Articles
MOODY'S CONFIRMS 'Baa' RATING ON THE METROPOLITAN TRANSPORTATION AUTHORITY TRANSIT FACILITIES REVENUE BONDS
RTD/MTA CORPORATE TRANSIT PARTNERSHIP PROGRAM INCREASED BUS RIDERSHIP BY 17,616 IN 1992
It's time to get the government out of mass transit.
Comprehensive NIPA Revision: Newly Available Tables.
Local Governments Urged to Participate in Global Agreements.
Reconsidering highway financing.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters