City of Daly City Policy on Personal Use of City Vehicles 5/08 Page 3 Add the value of fuel to the lease rate. Fuel provided can be valued at fair market value or at 5.5 cents per mile (for tax year 2007) for all miles driven by the employee. (See IRS Publication 535 for current fuel value per mile).
Prorate the lease value and fuel between business and personal use. The allocation between business and personal is done on a mileage basis. Thus, for example, if 70% of the auto’s mileage for the year is personal use, 70% of the lease value becomes the amount of taxable fringe benefit to the employee.
INSURANCE
Because vehicle use is limited to work related activity, coverage will be provided under the City’s Automobile Liability and Property Self-Insurance Program.
AUTHORIZATION
All personal use of City vehicles, regardless of reason for allowing use or of employee classification, must be authorized by the Department Head and approved by the City Manager.
An authorization form must be on file with the Motor Vehicles Division and Payroll before any personal use is permitted.
City of Daly City Policy on Personal Use of City Vehicles 5/08
CITY OF DALY CITY
AUTHORIZATION FOR PERSONAL USE OF CITY VEHICLE
__________________________ ________________ ________________________ Employee Name Position Department/Division
Vehicle Assigned:
______________ ________________________ _________________________ Number Make/Model Type
Vehicle qualifies for the following tax treatment:
Exemption as clearly marked Police or Fire vehicle
Exemption as unmarked Police ve hicle driven by sworn officer Exemption as a Utility Vehicle for commute only where no other personal use is permitted Commute Valuation Rule for a commute-only vehicle where no other personal use is permitted and employee is not a Control Employee
Lease Valuation Rule – personal use mileage must be tracked by the employee
EMPLOYEE ACKNOWLEDGMENT OF POLICY
I hereby acknowledge that I have received, read, understand, and will adhere to the City of Daly City’s Policy on Personal Use of City Vehicles. I understand that my use of a City vehicle is for the convenience of the employer and may be revoked at any time. I also understand that there may be personal income tax implications to me depending on the type of personal use authorized and the type of vehicle involved.
__________________________________ _______________________________ Employee Signature Date
AUTHORIZATION
__________________________________ _______________________________ Department Head Signature Date
__________________________________ _______________________________ City Manager Signature Date
DEPARTMENT OF FINANCE USE ONLY
Original – Finance/Admin
Copies – Department, Employee, Motor Vehicles, Payroll