Tax-Free Transit Benefits In
Action Alert
17 December 2007
By Todd Litman
Victoria Transport
Policy Institute
I have long been a supporter of employer-based incentives for public transit (often
called “tax-free transit benefit” or “tax-free transit passes”). This is one of
the "Win-Win Transportation Solutions" (http://www.vtpi.org/winwin.pdf),
which are market-based reforms that provide multiple economic, social and
environmental benefits.
There is now a promising opportunity to have this policy established in
BACKGROUND
Research by myself and others indicates that transit
benefits significantly increase transit ridership and provide large net
benefits (see www.vtpi.org/tdm/tdm8.htm
). Federal government sponsored research indicates that this policy is very
cost effective overall (IBI, 1999, Tax Exempt Status For Employer-Provided
Transit Benefits, Transportation Issue Table, National Climate Change
Process and Transport Canada (www.tc.gc.ca/programs/environment/climatechange/subgroups1/passenger_urban/study5/exec_summary/english/transitpass.htm
). In fact, it ranked as the most cost-effective transport emission reduction
strategy of dozens evaluated (Transportation Climate Change Table, 1999, Transportation
and Climate Change: Options for Action, Transport Canada).
US experience summarized in a National Academy of Science study (Analyzing
the Effectiveness of Commuter Benefit Programs, TCRP Report 107, http://onlinepubs.trb.org/onlinepubs/tcrp/tcrp_rpt_107.pdf
) reported that transit benefits typically cause transit use to increase by
approximately 25%, and sometimes by 100% or more. Tax-free transit benefits
began in the
There is a very good possibility that the 2008 Budget will include this
measure, if we can continue to demonstrate broad public support. In response to
a request from the House of Common’s Finance Committee, which received written
testimony on this topic in August, oral testimony was provided earlier this
month. Interest is strong within the Government as well as with MP’s. The Canadian Urban Transport Association (CUTA) is
lobbying for it (www.newswire.ca/en/releases/archive/November2007/27/c4789.html
), as is Al Cormier, a former CUTA CEO, and Richard Oram,
founder of Commuter Check (www.commutercheck.com).
WHAT YOU CAN DO
Please send letters to the Finance Minister, The Honourable
Jim Flaherty, and to the Minister of Transport, the Honourable
Lawrence Cannon, asking them to implement this policy change. A template is
posted at www.vtpi.org/TT_letter.doc
(MS Word format) or www.vtpi.org/TT_letter.htm
(HTM format). Sending letters on your organization's letterhead is
especially valuable. You can simply print the letter as is and sign and mail
one to each Minister, or make modifications to reflect your own knowledge and
feelings about this issue, who your organization represents, etc.
Personalizing will make it even more effective.
Please note -- it is very important that Al Cormier receive a copy of your
letter(s), so that we can be sure all appropriate government officials see
them. Thus, please forward your letters to Al Cormier by fax to 905-858-9291 or
by e-mail to alcormier2@sympatico.ca
. If your letterhead will not appear electronically, please use
fax.
Please contact me (250-360-1560 or litman@vtpi.org), or Richard Oram (201-280-8444 or Richard@enviro-urban.org)
if you have any questions or comments. Thank you!
Sincerely,
Todd Alexander Litman
Victoria Transport Policy Institute (www.vtpi.org)
litman@vtpi.org
Phone & Fax
1250 Rudlin Street
“Efficiency - Equity - Clarity”