The Tax Cut and Jobs Act of 2017 required the University to switch employee payroll deductions for parking charges from pre-tax to post-tax payments. This change occurred on April 1, 2018, and remained in effect through the end of 2019.
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On December 19, 2019, Congress passed legislation repealing the nonprofit parking tax. As a result, deductions for parking charges will again be made on a pre-tax basis effective March 1. The switch back to pre-tax deductions is automatic and will modestly lower your tax withholding for 2020 and the foreseeable future.
Please note that any employees who previously elected to pay parking charges at the time of purchase instead of by payroll deduction will not be able to benefit from the switch to pre-tax deduction until the next time they purchase an annual parking permit.
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