Tax will increase commuter costs, could jam area roads

WASHINGTON — A tax change taking effect on the first day of the new year could cost area commuters hundreds more annually and jam already clogged commuter roads.

The mass-transit commuter tax credit will end on Jan. 1, 2012, lowering the maximum tax-free amount commuters can put toward Metro, MARC and VRE train fare to $125. The limit had been $230 for two years.

Area Democratic senators Mark Warner, Ben Cardin and Barbara Mikulski sought to extend the increase again, citing a prospective increase in rush-hour traffic. Now roughly 250,000 people will face at least a few months of higher taxes, they say.

But it isn’t all bad news. Parking benefits are increasing from $230 to $240 tax-free per month.

Learn more here:

WTOP’s Max Smith contributed to this report.

Follow WTOP on Twitter.

(Copyright 2011 by WTOP. All Rights Reserved.)

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up