Chicago Police DepartmentUniform and Property U02-01-06
Taxation of Employer-Provided Vehicles
Issue Date:26 June 2019Effective Date:26 June 2019
Rescinds:25 May 1986 Version of U02-01-11
Index Category:Department Vehicles
I.Purpose
This directive:
  • A.informs civilian City employees who are authorized by the Department to use a City owned vehicle during other than normal duty hours of the provisions of the Tax Reform Act of 1984 relating to such use.
  • B.requires these civilian City employees to complete the Employer Provided Vehicle Trip Sheet provided by the Director, Finance Division.
II.General Information
  • A.The Tax Reform Act of 1984 stipulates that the use of an employer-provided vehicle for other than business reasons is a taxable fringe benefit. The Act also requires that the employee maintain a written record which substantiates the use of the vehicle by the employee.
  • B.The Finance Division will, at the end of each year, provide the City Comptroller’s Office with:
    • 1.the names of all civilian City employees who were authorized by the Department to use a City-owned vehicle during other than normal duty hours.
    • 2.summary documentation of the number of commuting trips for the year by each of the employees identified.
  • C.Based upon the summary documentation received, the Comptroller's Office will issue those employees a separate W-2 statement for the non-cash fringe benefit.
  • D.Failure to submit summary documentation of the number of commuting trips for each day the vehicle is used by the employee will result in the employee being issued a W-2 statement for a non-cash benefit amount equal to the total annual commuting trips of the vehicle based on the current standard rate of $1.50 per trip.
  • E.Civilian City employees authorized by the Department to use a City owned vehicle:
    • 1.will obtain Employer Provided Vehicle Trip Sheet forms from the Director, Finance Division, to use in substantiating the commuting use of the vehicle.
    • 2.will not use the vehicle for personal purposes, other than commuting, or de minimus use (such as lunch, or a stop for a personnel errand), between the employee's place of residence and place of employment.
III.Responsibilities
  • A.All civilian City employees authorized by the Department to use a City-owned vehicle will make the required entries on the Employer Provided Vehicle Trip Sheet for each day the vehicle is used. The completed Employer Provided Vehicle Trip Sheet must be submitted within 7 days after the end of each month to the responsible bureau chief. A photocopy of the Employer Provided Vehicle Trip Sheet should be retained by the employee for his own personal records.
  • B.The bureau chief will, after review, forward the Employer Provided Vehicle Trip Sheet to the Director, Finance Division.
  • C.The Finance Division will maintain a vehicle file for each civilian City employee authorized by the Department to use a City-owned vehicle. Completed Employer Provided Vehicle Trip Sheets will be retained in the files for a period of 7 years.
(Items indicated by italics/double underline were revised or added.)
Eddie T. Johnson
Superintendent of Police
15-062 RWN