Transit Pass Law and Legal Definition

A transit pass is a pass or ticket that allows a passenger of a service to take within a fixed period of time either a certain number of pre-purchased trips, or unlimited trips. Sometimes a transit pass may offer varying discounts according to the trips that are purchased individually. Transit passes can be purchased by anyone wishing to use the services at a full price. Generally, senior citizens and disabled students are given the pass at a reduced price. Subsidies are granted by employers, colleges, and universities to purchase the transit pass. A transit pass is also called a bus pass.

The term "transit pass" is defined under 26 USCS § 132 (f)(5)(A) as any pass, token, farecard, voucher, or similar item entitling a person to transportation (or transportation at a reduced price) if such transportation is:

(i) on mass transit facilities (whether or not publicly owned); or

(ii) provided by any person in the business of transporting persons for compensation or hire if such transportation is provided in a vehicle meeting the requirements of subparagraph (B)(i).