Chicago Police DepartmentUniform and Property U02-01-11
Taxation of Employer-Provided Vehicles
Issue Date:25 May 1986Effective Date:25 May 1986
Rescinds:D86-34
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 a Monthly Trip record (CPD-61.308).
  • C.provides an illustration on the reverse side of this notice of the Monthly Trip Record to be used to substantiate the number of commuting trips reported for the month.
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 Comptrollers 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 mileage of the vehicle based on the current standard mileage rate of 21 per mile for the first 15,000 miles and 11 per mile thereafter.
  • E.Civilian City employees authorized by the Department to use a City owned vehicle:
    • 1.will obtain Monthly Trip Record forms from the Director of the Finance Division to use in substantiating the commuting use of the vehicle.
    • 2.will not use the vehicle for personnel purposes, other than commuting or de minimus use (such as lunch, or a stop for a personnel errand), between the employees 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 Monthly Trip Record for each day the vehicle is used. The completed Monthly Trip record must be submitted within 7 days after the end of each month to the responsible bureau deputy superintendent. A photocopy of the Monthly Trip Record should be retained by the employee for his own personal records.
  • B.The bureau deputy superintendent will, after his review, forward the Monthly Trip Record to the Director of the 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 Monthly Trip Records will be retained in the files for a period of 7 years.
  • D.Separate Monthly Trip Records will be prepared for the months of January, February, March, April and May of 1986. The number of commuting trips for the months of January, February, March, April and May will have to be estimated. These Monthly Trip Records will be submitted with the May Monthly Trip Record. Questions regarding the completion of the form should be directed to the Finance Division.
Fred Rice
Superintendent of Police
86-068 FP (FRC)