Tax Reform Could Impact Campus Parking and Transit Benefits

With little guidance provided on the Tax Cuts and Jobs Act, colleges and universities are uncertain how to handle tax law changes related to campus parking. College and university officers worry that the lack of guidance will lead to new taxes on employee parking, even if free parking is a benefit. Officers are also concerned that they will be taxed on upkeep for employee parking lots. Another unresolved issue relates to handling pretax transit programs. Colleges could face taxes on employees who use a pretax account to pay for public transportation to work. Such taxes, however, may be avoided if an institution decides to eliminate pretax transit programs.

More on tax reform’s potential impact on campus parking is available on the Inside Higher Ed website.