SOP_NUMBER: 104.41
TITLE: Taxable Income From the Use of an Official Vehicle
REFERENCE_CODE: IVO11-0009
DIVISION: Administrative & Finance
TOPIC_AREA: 104 Policy-HR Payroll/Compensation/Salary
EFFECTIVE_DATE: 2009-03-15
WORD_COUNT: 630
POWERDMS_URL: https://public.powerdms.com/GADOC/documents/105263
URL: https://gps.press/sop-data/104.41/

SUMMARY:
This policy requires Georgia Department of Corrections employees who are assigned state vehicles for 24-hour use to report and pay taxes on the value of personal use of those vehicles. The Department values commuting trips between home and work at $1.50 each way (maximum $3.00 per day) in accordance with Internal Revenue Service rules. Law enforcement officers whose vehicle assignment is critical to emergency response duties are exempted from this requirement.

KEY_TOPICS: taxable income, state vehicle personal use, 24-hour vehicle assignment, commuting tax, law enforcement officer exemption, vehicle value reporting, payroll deductions, IRS regulations, personal use form, tax compensation

ATTACHMENTS:
  1. Personal Use of State Vehicle Form
     URL: https://gps.press/sop-data/104.41-att-1/

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FULL TEXT:
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|GEORGIA DEPARTMENT OF CORRECTIONS<br>Standard Operating Procedures|Col2|Col3|
|---|---|---|
|**`Functional Area: `**<br>`Support Services/Personnel`|**`Reference Number: `**<br>`IVO11-0009`|**`Revises Previous`**<br>**`Effective Date:`**<br>`9/01/01`|
|**`Subject:`**<br>`Taxable Income From the Use of`<br>`an Official Vehicle`|||
|**`Authority:`**<br>`Owens/Schofield`|**`Effective Date:`**<br>`3/15/09`|`Page`**` 1`**` of`<br>**`   3`**|

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 I. POLICY:

    Department employees assigned state vehicles on a 24-hour
    basis must pay the appropriate amount of tax for personal use
    of the vehicle. Internal Revenue Service Rules require that a
    stated value for use of an assigned state vehicle for
    commuting between home and work be credited as compensation to
    employees assigned such vehicles on a 24-hour basis.

 II. APPLICABILITY:

    All employees assigned a state vehicle for use on a 24-hour
    basis except those who qualify as "Law Enforcement Officers".
    To be eligible for the exemption, the assignment of the
    vehicle "must be critical to Law Enforcement functions, such
    as being able to report directly from home to an emergency
    situation."

 III. RELATED DIRECTIVES:

    26 CFR Ch. 1 (Internal Revenue Code)

 IV DEFINITIONS:

    A. For the purpose of these provisions of the Internal
       Revenue Code, a Law Enforcement Officer is defined as "an
       individual who is employed on a full-time basis by a
       governmental unit that is responsible for the prevention
       or investigation of crime involving injury to persons or
       property (including apprehension or detention of persons
       for such crime)" and who executes these responsibilities
       as part of regular job duties.

```

|Functional Area:<br>Support Services/Personnel|Prev. Eff. Date:<br>9/01/01|Page 2 of<br>3|
|---|---|---|
|`Functional Area:`<br>`Support Services/Personnel`|`Effective Date:`<br>`3/15/09`|`Reference Number:`<br>`IVO11-0009`|


```
   B. For the purposes of this policy "work" is not limited to
      the employee's "assigned office" but includes a facility,
      center, or location where the employee is to perform
      normal job duties.

   C. From the choices offered in the IRS rules, the Department
      has chosen to define "value" of the trip from home to
      work to be $1.50 each way.

V. ATTACHMENTS:

   Attachment 1- Personal Use of State Vehicle Form

VI. PROCEDURE:

   A. The Assistant Commissioner and each Division Director
      will establish internal procedures within their assigned
      work units to ensure proper submission of the required
      "State Vehicle Personal Use Form". This procedure will
      include the naming of an individual to review submitted
      forms from that division or work unit. Central Personnel
      Administration will be provided the name of the
      designated Reviewer.

      1. Employees assigned a 24-hour state vehicle and not
         exempted as listed in IV.A. will, on a monthly
         basis, complete the State Vehicle Use Form and
         forward it, no later than the 5th of the following
         month, to the individual designated as their
         Reviewer.

      2. The Reviewer will authenticate and submit the
         approved form(s) to Central Personnel Administration
         for processing. The form(s) must reach Central
         Personnel Administration no later than the 10th of
         the month following the month of activity. Activity
         will be credited on the last payperiod of the month.

      3. Each Division Reviewer will also submit, as
         necessary, to Central Personnel Administration, the
         name of individuals who gain or lose the assignment
         of 24-hour vehicles each month.

```

|Functional Area:<br>Support Services/Personnel|Prev. Eff. Date:<br>9/01/01|Page 3 of<br>3|
|---|---|---|
|`Functional Area:`<br>`Support Services/Personnel`|`Effective Date:`<br>`3/15/09`|`Reference Number:`<br>`IVO11-0009`|


```
B. Central Personnel Administration will ensure that the
   proper accounting for tax purposes is made for daily use
   of assigned vehicles.

   1. Central Personnel Administration will credit the
      employee with the income value of $1.50 for each
      trip between work and home ($3.00 per day maximum).

   2. Employees assigned 24-hour vehicles and not exempted
      as listed in IV.A. who do not submit a monthly
      report by the deadline will be credited with the
      maximum possible usage for the month the report is
      not submitted.

   3. Central Personnel Administration will coordinate
      with Fleet Management to ensure proper listing of
      employees with assigned 24-hour vehicles is
      maintained.

```