HOUSE BILL REPORT

EHJM 4019

BYRepresentatives Nelson, D. Sommers and R. Fisher 

Requesting equal income tax treatment of employer-provided transit passes and vehicle parking.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (27)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cantwell, Cooper, Day, G. Fisher, R. Fisher, Gallagher, Hankins, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:Gene Baxstrom (786-7303)

AS PASSED HOUSE JANUARY 24, 1990

BACKGROUND:

Many employers provide subsidized or free parking or transit passes for employees.  Federal income tax laws do not include the value of employer- provided parking as taxable income for employees.  Those tax laws provide that when the value of employer-provided transit pass benefits are greater than $15 per month, the entire value of the pass will be treated as taxable income.

SUMMARY:

The Legislature memorializes Congress to request that federal tax laws be changed to give equal tax treatment to employer-provided benefits related to parking and transit passes.  Copies of the Memorial are to be transmitted to the President of the United States, the President of the Senate, the Speaker of the House and to each member of the Washington congressional delegation.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Ron Posthuma, METRO; Steve Lindstrom, Washington State Transit Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Federal law should give equal tax treatment to the employee benefits of employer-provided parking and employer-provided transit passes.

House Committee - Testimony Against:      None.