Recent Changes in Tax Laws
UPDATE (August 13, 2018)
On July 10, we communicated that, based on System guidance, payroll deductions for parking permits were moving from a pre-tax basis to after-tax. However, after further assessment of Unrelated Business Income Tax (UBIT) impact and pending clarification from the IRS on the impact to parking operations, System has asked us to hold off on any changes at this time.
As a result, there will be NO CHANGE to payroll deductions for parking permits and they will continue to be on a pre-tax basis until further clarification is received. It is possible that changes could take place mid-year and we will provide communication at that time.
Construction of a new parking garage is scheduled to close the western half of Lot 50 around December 2018.
If you currently have a Lot 50X permit, you will be allowed to renew your permit, however it is important to note you may be required to move to West Campus Garage (WCG) when construction begins.
You will not be required to pay the difference between the price for garage and surface lot parking.
Some customers who register to renew Lot 50X permits may be upgraded to a Lot 50 permit (without the X).
Those upgraded to a Lot 50 permit will not be displaced during construction and can remain in Lot 50 for the entire permit year.
(effective Fall 2018)
In a recent email, Joseph Duron, CPA, Executive Director of Budgets and Accounting at the Texas A&M University System sent an email to all system members which included the following statement:
"...based on the recent changes in the tax laws affecting our Unrelated Business Income activities (in particular our parking operations) we have made the decision that as a System, effective September 1, 2018, we will no longer be offering employees the benefit of paying their parking fees on a pre-tax basis..."
The change in the tax laws for Non Profits creates Unrelated Business Income Tax for the amount employees are allowed to take pretax. Employees can still pay for permits monthly through payroll deductions, but without any pretax benefit. For customers choosing to continue paying for their parking permits via payroll deduction, no action is needed.