Close to a million commuters who don’t receive tax breaks for using mass transit are on a fast track to relief.
The City Council will introduce legislation on Tuesday to help straphangers whose companies have not signed up for the federal tax break which allows them to set aside transportation costs before taxes.
“Many of us feel like the MTA treats us like a piggy bank,” said Council Member Dan Garodnick. “Helping New Yorkers take advantage of this benefit is another way to put cash in their pockets.”
The federal tax break lets people who take mass transit put aside $130 per month before taxes — a savings of about $443 every year for the average commuter, according to the Riders Alliance.
Businesses can also cash in on the average payroll tax break of $103 per worker, but many don’t participate in the program.
Garodnick said the legislation will require companies with 20 or more workers to sign up for the program.
Transportation advocates cheered the decision and urged that the council quickly take up and pass the proposed legislation.
“The City Council can’t lower fares but it can help more transit riders get this tax break,” said John Raskin, executive director of the Riders Alliance.
The break will soften the blow of the looming 4 percent fare hike in 2015, he added.