Travel
Information Bulletin
November - December 2002
2003
Limits for Qualified Transportation Fringes
Qualified
Transportation Fringe for taxable years beginning in 2003, the monthly
limitation regarding the aggregate fringe benefit exclusion amount for
transportation in a commuter highway vehicle and any transit pass, is
$100. The monthly limitation regarding the fringe benefit exclusion amount
for qualified parking is $190.
The
following benefits are qualified transportation fringe benefits:
An
employer may simultaneously provide an employee with any one or more of
these three benefits.
Transportation
in a commuter highway vehicle is transportation provided by an employer to
an employee in connection with travel between the employee's residence and
place of employment. A commuter highway vehicle is a highway vehicle with
a seating capacity of at least 6 adults (excluding the driver) and with
respect to which at least 80 percent of the vehicle's mileage for a year
is reasonably expected to be:
-
For
transporting employees in connection with travel between their
residences and their place of employment; and
-
On
trips during which the number of employees transported for commuting
is at least one-half of the adult seating capacity of the vehicle
(excluding the driver).
A
transit pass is any pass, token, fare-card, voucher, or similar item
(including an item exchangeable for fare media) that entitles a person to
transportation:
-
On
mass transit facilities (whether or not publicly owned); or
-
Provided
by any person in the business of transporting persons for compensation
or hire in a highway vehicle with a seating capacity of at least 6
adults (excluding the driver).
Qualified
parking is parking provided to an employee by an employer:
-
On
or near the employer's business premises; or
-
At
a location from which the employee commutes to work (including
commuting by carpool, commuter highway vehicle, mass transit
facilities, or transportation provided by any person in the business
of transporting persons for compensation or hire).
However,
qualified parking does not include—
-
The
value of parking provided to an employee that is excludable from gross
income as a working condition fringe), or
-
Reimbursement
paid to an employee for parking costs that is excludable from gross
income as an amount treated as paid under an accountable plan.
However,
parking on or near property used by the employee for residential purposes
is not qualified parking.
As
always, for more information and for any of your commute needs, please
call Westchester’s SMART COMMUTE Program at (914)
995-4444, or e-mail us at tvo1@westchestergov.com
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