Press release

Government of Quebec’s 2003-2004 Budget
Decisions that will encourage the use of public transit

Montreal, 12 March 2003 – The board of directors of the Société de transport de Montréal welcomes the tax deductions for transit passes announced in the Quebec government’s 2003-2004 budget. The STM, as well as the Canadian Urban Transit Association and the Federation of Canadian Municipalities, have, in fact, requested the implementation of such measures several times since 1995 from both the provincial and federal governments. According to the chairman of the board, Mr. Claude Dauphin, "There’s no doubt that these deductions will encourage a greater number of people to use public transit for work-related trips".

Measures effective March 1, 2003
It is important to note that these measures go into effect on March 1, 2003. They cannot, therefore, be taken into account on the 2002 income tax returns that many Quebecers are now completing.

In brief, these reductions will allow an employer that pays the costs of monthly passes, or that reimburses employees for the cost, to deduct these amounts from its revenue. Employees who receive these benefits will not pay any additional tax on the benefit. Workers who purchase their monthly passes themselves, and who are not reimbursed by their employer, can deduct the total cost of the passes, as long as the pass is purchased for travel to work. Employers will be responsible for completing the necessary government forms.

Individual taxpayers will not have to attach proof of purchase of the monthly passes to their income tax returns. However, clients must keep the passes for a period of six years, in case of a later audit by the Minister of Revenue. Therefore, from now on, STM clients should keep their monthly passes (CAM) purchased for travel to work, starting with the one for March 2003.

Potential impact for STM clients

Monthly CAM – regular fare

Income	2003 Cost 10 monthly passes* $52.00 / month		Tax Rate (Quebec)		Savings 2003	Savings 12 months
$ 27,095 or less	$ 520	X	16 %	=	$ 83.20	$ 99.84
$ 27,096 to $ 54,195	$ 520	X	20 %	=	$10400	$ 124.80
$ 54,195 and over	$ 520	X	24 %	=	$124.80	$ 149.76

* From March to December 2003

Monthly CAM – reduced fare

Income	2003 Cost 10 monthly passes* $ 26.00 / month		Tax Rate (Quebec)		Savings 2003	Savings 12 months
$ 27,095 or less	$ 260	X	16 %	=	$41.60 $	$ 49.92
$ 27,096 to $ 54,195	$ 260	X	20 %	=	$ 52.00	$ 62.40
$ 54,195 and over	$ 260	X	24 %	=	$ 62.40	$ 74.88

* From March to December 2003

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