Some ideas just take time. A few years ago, transit advocates
decided that a good way to slow traffic growth was for companies
to buy their employees transit passes. Even though a major
lobbying effort failed to convince the federal government to
give businesses such tax deductions, the idea is still around
-- and may be starting to gain grassroots support.
A
Progressive Conservative member of the provincial parliament has
proposed that Ontario also extend tax breaks to individuals who
take transit. Opposition members rarely get laws passed, but
Durham MPP John O'Toole’s private member’s bill has been making
steady progress through the provincial legislature, and has
gained the support of all three parties.
He says he
doesn’t mind if the ruling Liberals propose their own
legislation, and provincial staff are apparently looking at the
idea. There are several options to be considered, with the tax
deductions either going to employers that subsidize the cost of
their employees’ transit passes, or to commuters themselves.
O'Toole believes that savings to riders could eventually amount
to hundreds of dollars, especially if Ottawa also makes changes
to its tax laws.
Michael
Roschlau of the Canadian Urban Transit Association says the
recent federal budget contained several pieces of good news for
the nation’s transit systems, and among them a specific mention
of a possible tax exemption for employer-provided transit
benefits. He cautions that it was included as a “future action”,
but after years of lobbying, it’s a bit of a breakthrough.
How would
it work? Says Roschlau, “Most people who get parking as an
employment benefit don’t pay tax on it, yet if the employer
wanted to give people a choice between that and a transit
benefit -- which could be a monthly pass, or a contribution
towards a monthly pass -- it would be fully taxable.” He says
this exemption could encourage employers to consider offering
their workers an alternative to driving.
M.P.P.
O'Toole, who regularly takes GO Transit and the TTC, says that
with many GO passes costing well over $100 a month, people have
become interested ever since hearing about the plan in the
media. “It’s taken a life of its own,” he says, admitting that
his office has been “kind of overwhelmed with the response.” GO
train riders have approached him about the issue, saying “‘Oh
you’re the guy who did the transit thing -- when’s it going to
start?’” Although his private member’s bill has passed second
reading in the legislature, it would have to be studied by
government committees and bureaucrats before ever reaching third
reading and becoming law.
Even if the
provincial Liberal government went ahead and drew up its own
plan, O'Toole says people can promote the idea on a grassroots
level. He suggests that groups draw up very simple petitions
that ask the provincial parliament to “enact legislation that
would make public transit expenses tax-receiptable.” Over the
next few weeks, I will try to identify any advocacy groups that
are prepared to take on this campaign, and give you an idea how
to show your support.
To learn
about how Ottawa can give transit riders or their employers a
break on their federal tax, start with
www.transitaction.ca.
For an example of how such a system could operate, check out the
TransitChek program in the United States. The website
www.transitcenter.com
states that American commuters can save up to $1,200 U.S. a year
if their employers help pay their commuting costs.
To find out
about local initiatives to improve transit, the Rocket Riders
advocacy group is meeting tonight at Toronto City Hall, in
committee room 2 at 6:30 p.m.
Send e-mail
to
transit@eddrass.com.
Include address and phone number.