Higher pre-tax savings offered for transit passes

16 January 2002 |

Campus employees who purchase public transit passes through payroll deduction can commute for less this year.

Updated federal tax law increases the monthly pre-tax amount allowed for purchasing public transit passes through payroll deduction. For the 2002 tax year, the monthly pre-tax limit for transit will increase from $65 to $100 per month per person.

Parking & Transportation offers a pre-tax payroll deduction transit program for the campus, including a $48 value/$45 cost BART ticket package. In the past, only $65 of the monthly $90 cost for two tickets qualified for pre-tax consideration. This year, the entire $90 will be a pre-tax expense to the individual, lowering taxable income.

“If you spend at least $45 on BART or AC Transit each month, you’ll save by using the pre-tax option,” said Miriam Ranjebran, who manages the pre-tax program for TriP, the alternative transportation project of the campus and the city of Berkeley.

Campus employees who spend less than $45 per month on public transit can realize savings through TRiP’s New Directions discount program, she notes.

Currently, 150 campus employees have elected to participate in the campus pre-tax transit program — saving 28 to 41 percent on transit tickets and passes as a result. The program also offers convenience. Since the transit fee is automatically deducted each month, all the employee has to do is pick up the transit pass at the TRiP office.

For information on the pre-tax option, including details on how to enroll, contact the Berkeley TRiP office, 2033 Center St. and 2543 Channing Way; by e-mail at berktrip@uclink.berkeley.edu; or by phone at 643-7665.