New Jersey § 54a:6-23

§ 54a:6-23.

a. For the purposes of the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. , “gross income” shall not include employer provided commuter transportation benefits

as defined pursuant to section 3 of P.L.1992, c. 32 ( C.27:26A-3 ), up to and including the limit per taxable year per employee pursuant to subsection

b. of this section. Should an employee receive commuter transportation benefits in excess of those limits

in a taxable year, only the amount in excess of those limits shall be included in

gross income. If an employee receives money towards commuter transportation benefits from the

employee's employer, as an advance, a reimbursement, or both, the employee shall furnish

suitable proof to the employer in the form of receipts, ticket stubs or the like that

the employee used the employer provided money for alternative means of commuting as

defined pursuant to section 3 of P.L.1992, c. 32 ( C.27:26A-3 ). b. (1) The limit per taxable year per employee shall be $720 for the taxable years beginning

on and after January 1, 1993 but before January 1, 1997. (2) The limit per taxable year per employee shall be $1,000 for the taxable years beginning

on and after January 1, 1997 but before January 1, 2002 . For taxable years beginning on or after January 1, 1994 but before January 1, 2002 , the director shall adjust the limit, rounded down to the nearest $5, in proportion

to the change in the average consumer price index for all urban consumers in the New

York and Northeastern New Jersey and the Philadelphia areas, as reported by the United

States Department of Labor, from calendar year 1993 to the calendar year ending immediately

before the taxable year. (3) The limit per taxable year per employee shall be $1,200 for the taxable years

beginning on or after January 1, 2002, provided however that in the case of any taxable

year beginning in a calendar year after 2002 the director shall adjust the limit for

inflation in parallel with the adjustment pursuant to paragraph (6) of subsection (f) of section 132 of the federal Internal Revenue Code

of 1986 , 26 U.S.C. s.132 , so that the taxable year limit pursuant to this paragraph is equal to 12 times the

adjusted federal monthly limit pursuant to subparagraph (A) of paragraph (2) of subsection (f) of section 132 of the federal

Internal Revenue Code of 1986 , 26 U.S.C. s.132 . c. The exclusion provided by subsection a. of this section shall not apply to any

commuter transportation benefit unless such benefit is provided in addition to and

not in lieu of any compensation otherwise payable to the employee. d. Acceptance of the cash value of qualified parking, pursuant to section 132 of the federal Internal Revenue Code of 1986 , 26 U.S.C. s.132 , on the part of one employee of an employer in place of qualified parking fringe

benefits provided to the other employees of the employer in addition to and not in

lieu of compensation, shall not cause the qualified parking fringe to become a taxable

benefit for employees who do not accept the cash value.