The University of Kansas

Tax law changes may offset parking increases

Tax law changes exempting employee parking and transit costs from federal taxes will help KU employees offset the first price increase for campus parking permits in four years.

For some permit holders, the tax savings will exceed the permit price increases, said Rodger Oroke, director of general services, in announcing the rate changes.

Chancellor Robert Hemenway, who approved the new parking rates, said the university kept price increases for students, who are not affected by the tax law change, as low as possible. Student permits for surface parking (regular parking lots, as opposed to the parking facilities, or garages) will increase only $10 a year, while increases for other permits range from $20 to $100. The average increase for all non-reserved, surface-parking permits is $19. Almost two-thirds of the 13,615 parking spaces on campus are designated for students.

“I know parking permits are a necessity for many people to get to their jobs and classes, and I wish we could avoid increasing fees. But this year’s budget realities make that impossible,” Hemenway said. “However, I’m pleased that employee parking permits are now exempt from federal taxes and may actually make parking permits cheaper for some employees.”

Due to changes in federal tax laws, up to $175 of personal parking expenses per month and up to $65 of personal transit or vanpool expenses per month can be paid for with pre-tax salary deductions. These amounts are completely exempt from federal income tax and Social Security. Depending on tax brackets, pre-tax payments will save some KU permit holders about $30 to $33 in federal income taxes. The average increase for a non-reserved surface lot parking permit for KU staff is $25. Non-reserved parking facility permits for staff rose an average of $67.

Benefits-eligible staff may enroll to pay for their parking permits on a pre-tax basis through payroll deductions when buying their 2001-02 permits this summer.
The permit price increases will be effective Aug. 1 for the 2001-20 school year, the first increase since 1997. KU Parking Services is supported solely by revenue from the sale of permits, fines, and other user fees.

The price increases are in response to rising operating costs, including parking lot maintenance, the obligation to meet debt service requirements of outstanding bonds, and a 50 percent increase in the city of Lawrence’s storm water runoff fee.

KU’s parking rates remain among the lowest in the Big 12 conference, ranking 9th for student parking permits. Faculty and staff parking fees vary widely in the Big 12 from a $54 flat fee at Oklahoma State University to $780 a year for a reserved spot at the University of Nebraska-Lincoln.

The new parking rates are:

Surface Lot Permits
Reserved: $600 (currently $500)
Gold (formerly Blue/Enter): $180 ($150)
Blue: $135 ($110)
Red: $115 ($95)
Yellow: $85 ($75)
Residence Hall: $85 ($75)

Parking Facility Permits
Reserved: $600 (currently $500)
Gold (formerly Blue/Enter): $220 ($155)
Blue: $175 ($115)
Red: $175 ($100)
Yellow: $125 ($80)

Basketball Event Parking
Toll: $10 (currently $6)

Students can only purchase yellow and residence hall permits.

Park-and-ride permits will increase from $120 to $130. KU’s portion of the rate rose from $45 to $50.

Parking facility permits offer a guaranteed parking space, since the facilities are not oversold, and almost all the spaces are covered. There are 1,571 parking spaces in KU’s two parking garages.

Other changes:
Handicap placards. Placard holders must now register the placard with KU Parking Services, which will then issue an ID and a pass to be displayed on the vehicle for admittance to campus. The change is intended to protect handicap spaces for those with legitimate placards.

Blue/Enter to Gold. The current Blue/Enter pass, which allows holders to park in any surface lot on campus and gain access to Jayhawk Boulevard, is changing to gold. This change is intended to eliminate confusion between the Blue/Enter pass and the Blue pass, which does not grant holders access to Jayhawk Boulevard.

Lot 37 (Malott-Haworth halls): Currently, the north half of lot 37 is restricted from 5 to 7:30 p.m. to faculty/staff permits only. Now the entire lot will be restricted from 5 to 7:30 p.m. to faculty/staff permits only.