BILL NUMBER: S3145
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the election of
qualified transportation fringe benefits
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow employers in New York State the option of offering to employees
the option to use pre-tax earnings for the purchase of qualified fringe
benefits.
Section 1, subsection a amends the tax law to add a new section defining
terminology around election of qualified transportation fringe benefits,
including bikesharing arrangements, employer, local government, quali-
fied transportation fringe benefits, and ridesharing.
Section 1, subsection b describes the benefits in lieu of taxable dollar
compensation.
Section 1, subsection c directs the department to create rules and regu-
lations necessary for the implementation of this section.
Section 2 establishes the effective date.
 
JUSTIFICATION:
Every year, employees use a variety of means of transportation to
commute to work. Typically, those costs are paid for out of pocket by
the employee and those costs are subject to applicable taxes. This would
allow employers to offer pretax commuter benefits to employees for any
transportation in a commuter highway vehicle between the employee's
residence and place of employment, any transit pass, qualified parking,
bicycle purchase or repair, transportation network company (TNC) prear
ranged rides, bike- and ride-shares, and membership in any TNC, rides-
haring, or bikesharing membership program.
The commuter benefits program can provide savings for both employers and
employees. Employers can save by reducing their payroll taxes. The more
employees who sign up for transportation benefits, the more the employer
can save. Employers can also attract and retain employees, by offering
transportation benefits. Employees can lower their monthly expenses by
using pre-tax income to pay for their commute. This would bring the
rest of the state in closer alignment with a New York City commuter
benefits policy which has been in effect since 2016.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.9152
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect January 1, 2025.