Fuel Management

Employees Face Added Tax Burden for Use of State Agency Vehicles

April 19, 2010

SAN FRANCISCO - Hundreds of workers at State Compensation Insurance Fund (State Fund) face a bigger income tax bill next year because their employer didn't understand the law for reporting company vehicle use, according to the Sacramento Bee.

State Fund employees who have been using company vehicles to commute to and from work must now claim the fair market value of the vehicle, the gas, the insurance, and maintenance as income, prorated to the percentage of miles used for business. They'll also have to claim it back to Jan. 1 of this year, the Bee reported.

State Fund manages a 2,000-vehicle fleet, with 1,800 vehicles assigned to staff. Some staff has been allowed to commute in company vehicles and claim the benefit as income at $3 per round trip.

However, after the IRS started auditing state workers at other agencies who take company cars home, State Fund officials recently asked a tax consultant to look at its policy.

Using the $15-per-week method, called the Commuting Valuation Rule, is OK "only if a driver of an assigned vehicle uses the car for business purposes and has a legitimate reason to commute in a State Fund vehicle," Chief Operating Officer Harrison Jerome said in an April 13 e-mail.

Some employees will hand in their keys rather than bear the added tax burden, fund spokeswoman Jennifer Vargen said, reported the Bee.


Comment On This Story

Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All

Recent Topics

Hi everyone! Just wanted to remind you about fleetDOCs, our library of fleet-related documents. Users can upload any relevant fleet...

View Topic

My agency currently uses live local auction to dispose of surplus assets. We would like to move to on-line. Can anyone give me any...

View Topic

Fleet Documents

1055 Fleet Documents (and counting) to Download!

Sponsored by

A specialized form of leasing wherein some or all fleet costs are estimated in advance, then budgeted and billed by the fleet management company with periodic invoices (usually monthly).

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices