Parking rates for fiscal year 2003-04 will increase to help address the growing parking needs at Duke, but the impact of the increases for employees will be minimal due to a new opportunity -- the ability to pay for parking with pretax dollars.

The fee increase balances long-range needs and an effort to limit the extent of increases in the future. While needs continue to grow, the parking and Transportation Department is financially self-sufficient said Tallman Trask, Duke's executive vice president. "Because of the change to pretax parking, many employees renewing their parking permits will actually see a decrease in their out-of-pocket expense when the new rates go into effect on Sept. 1," Trask said.

By paying for parking through pretax payroll deduction, employees can have the money taken out of their pay before taxes are calculated. This reduces the taxable income, and thus reduces the amount of money withheld for taxes. The result will be an increase in take-home pay for many employees.

For example, imagine an employee who earns $30,000 and is taxed as a single head-of-household with three exemptions. This employee paid $66 this year to park in an ungated Medical Center lot. If she had no other expenses except parking, her bi-weekly take-home pay after paying taxes and parking would be $924.22. By paying for parking with pretax dollars, she can reduce the amount of taxes she pays; her take-home pay after paying taxes and parking would be $925.30, even though she is paying 25 cents more per month for parking.

All employees who have parking fees payroll deducted are eligible to use pretax dollars to pay for parking. Current permit holders have priority to renew their permit for the lot they currently park in. Pretax parking will be automatic for eligible employees. Any employee who does not wish to use pretax dollars to pay for parking must pay in full for their permit at the time of purchase.

Planning for the Future

Part of the strategic plan for parking also involves merging the two parking departments (Duke University and Duke University Medical Center). This merger will allow more efficient use of resources and improved customer service, Trask said. The merger also will help enable Duke to take advantage of the federal law that allows employees to deduct parking as a pretax expense.

Despite the merger, the permit renewal processes will remain the same as in past years. Current parking customers should receive letters with specific instructions about renewal in late June and early July.

Among other changes in the parking program this year are the addition of Parking Garage IV, located adjacent to the Bryan Student Center, and the incorporation of the Duke University Road lots into the "remote" zone designation. Other lot designation changes include: LaSalle (from proximate to premium), Pegram and Carr on East Campus (from remote to proximate) and Alumni, News Service and Development lots (from remote to proximate). Trent will change from a residential to a proximate lot.

No Medical Center parking areas will change designation.

Providing Information

The Parking and Transportation Department has scheduled town hall meetings for members of the Duke community to learn more about the parking changes and the pretax change.

-- Tuesday, July 1, Duke University Museum of Art, North Gallery, 11 a.m.- noon.

-- Tuesday, July 8, Searle Center, Room E, 3-4 p.m.

To determine more accurately how the pretax change will affect you, visit the parking Web site. There you will find information about the parking rates, and also a calculator to help you determine how the new parking rates will affect your take-home pay.

In addition, a special pretax hotline will be available beginning Monday, June 23 through Friday, July 11 (excluding July 4). Hotline hours will be 8 a.m.-7 p.m. Monday-Friday, and 10 a.m.-6 p.m. Saturday and Sunday. By calling the hotline at 684-PARK (7275) and selecting option 1, you can speak with staff capable of answering your pretax and parking questions.