Maricopa County Travel Reduction Mandate

Mandate: 

Arizona Revised Statute 49-588

Program: 

Maricopa County Travel Reduction Program (TRP)

Get Started for FreeFree Compliance Consultation
Overview

Established in 1989 under Arizona Revised Statute 49-588, the Maricopa County Travel Reduction Program requires employers with 50+ employees to implement comprehensive travel reduction plans. Unlike simple transit benefit mandates in other cities, this program requires measurable behavioral change with a target of reducing single-occupancy vehicle (SOV) commuting to 60% or less of total employees. The program includes annual surveys, designated transportation coordinators, and progressive reduction targets with enforcement mechanisms.

Who needs to comply?

All employers with 50 or more employees at a single worksite in Maricopa County, Arizona. This includes private businesses, public organizations, non-profits, and schools. Some exemptions exist for certain government entities, but most organizations meeting the employee threshold must comply with all program requirements.

who is eligible?

Covered employee: Any employee who works at a site with 50 or more employees in Maricopa County, Arizona. This includes full-time and part-time employees.

Covered employer: Any organization (private, public, or non-profit) with 50 or more employees at a single worksite in Maricopa County, including Phoenix, Tempe, Scottsdale, Mesa, Glendale, Chandler, and other county municipalities.

Who qualifies for the tax credit?

The Maricopa County program does not include specific tax credits. However, employers can utilize federal pre-tax commuter benefits (up to $325/month for transit and $325/month for parking in 2025) to reduce their payroll tax obligations by approximately 7.65% on employee commuter benefit contributions.

HOW TO BE COMPLIANT?

To comply with the Maricopa County Travel Reduction Program:

  1. Submit a baseline travel reduction plan within 90 days of reaching 50+ employees
  2. Designate a transportation coordinator responsible for program implementation
  3. Conduct annual employee commuting pattern surveys during designated periods
  4. Develop and implement strategies to reduce single-occupancy vehicle commuting
  5. Achieve progressive SOV reduction targets: 10% annually for 5 years, then 5% for 3 years, until reaching maximum 60% SOV rate
  6. Maintain documentation of program implementation and employee participation
  7. Submit updated plans and survey results annually to demonstrate progress
How does the program work?

The Maricopa County Travel Reduction Program requires employers to develop comprehensive plans to reduce single-occupancy vehicle commuting. Organizations must designate a transportation coordinator, conduct annual employee surveys, and implement strategies to achieve progressive reduction targets toward a maximum 60% SOV rate. Plans are submitted to the Maricopa County Travel Reduction Program Regional Task Force for review and approval. Employers must demonstrate measurable behavioral changes in commuting patterns, not just offer benefits. The program includes enforcement mechanisms for non-compliance.

WHAT is covered / not covered?

The mandate covers all employee commuting activities and requires implementation of strategies to reduce single-occupancy vehicle trips. This includes:

Covered:

  • Employee commuting pattern surveys
  • Comprehensive travel reduction plans
  • Alternative transportation promotion
  • Designated transportation coordinator responsibilities
  • Documentation of program implementation and results
  • Progressive reduction targets toward 60% SOV maximum

Not covered:

  • Business-related travel during work hours
  • Visitor transportation
  • Delivery services and logistics
  • Fleet vehicle operations unrelated to commuting

Need help navigating Maricopa County's complex performance-based transportation mandate while maximizing benefits for your organization and employees?

What are the potential penalties?

Non-compliance with the Maricopa County Travel Reduction Program can result in civil penalties, including fines for failure to submit required plans, conduct annual surveys, or demonstrate good faith implementation efforts. The program's enforcement focuses on implementation of approved strategies rather than achieving specific reduction targets, though persistent failure to make progress toward SOV reduction goals may trigger enforcement actions.

Are there any incentive programs to save money?

While the program itself is mandatory, employers can realize significant financial benefits through compliance strategies:

  • Federal pre-tax commuter benefits allowing savings up to $325/month per employee (2025 limit)
  • Employer FICA tax savings of 7.65% on pre-tax benefit amounts
  • Reduced parking facility costs and demands
  • Potential eligibility for additional environmental or transportation grants
  • Enhanced employee recruitment and retention through valuable commute benefits
  • Improved corporate sustainability profile
WHERE IS THE MANDATE IN EFFECT?

The mandate applies only to Maricopa County, Arizona. This includes the cities of Phoenix, Tempe, Scottsdale, Mesa, Glendale, Chandler, and all other municipalities within county boundaries.

Where is the program in effect?

The program is in effect throughout Maricopa County, Arizona, covering all municipalities within the county borders.

Enforcement Authorities
Maricopa County Travel Reduction Program Regional Task Force
Maricopa County Air Quality Department

Want to give commuter benefits to your employees?