Louisiana Administrative Code
Title 4 - ADMINISTRATION
Part V - Policy and Procedure Memoranda
Chapter 41 - Taxable Compensation-PPM Number 73
Section V-4117 - Parking-Taxable Benefits

A. The Energy Policy Act of 1992 amended the Internal Revenue Code provisions on taxing employer provided transportation benefits. Under these provisions, employer provided parking in a public parking facility valued up to $175 per month may be excluded from taxable income. Any amounts of $175 or higher must be considered taxable fringes and are to be included in taxable income, unless the employee pays amounts in excess of the $175 per month.

B. The value of the parking cost is to be based on the cost an employee would incur in an arm's-length transaction to obtain parking at the same site. If this cost cannot be determined, value should be based on the cost incurred in an arm's-length transaction to obtain other space in the same lot or a comparable lot in the same general area.