Use of State Owned Vehicles

Authorities

• CRS 24-30-1112 Permanent assignment of vehicles
• CRS 24-30-1113(2)(b) Assignment of vehicles to state agency officer or employees
• State Controller Technical Guidance “Taxability of State-Owned Vehicles”
• State Fiscal Rules 1 CCR 101-1, Fiscal Rule 9-6 Assignment of State-Owned Vehicles  
• Division of Central Services Rules 1 CCR 103-1

Definitions

• Assignment - Use a state-owned vehicle, other than motor pool use, by an employee in accordance with CRS 24-30-1113.  
• Commuter – Employee who commutes and is required to commute.  
• Commuting – Travel between and officer’s or employee’s personal residence and one or more regular places of business.
• Cost Analysis – Using the State Fleet Trip Odometer, the cost analysis determines the lowest cost of transportation for the state employee.  
• De Minimis Personal Use – Includes infrequent use of a vehicle for personal use.  For example, a stop for a personal errand on the way between a work location and the employee’s home. Use of a State-owned vehicle for commuting for more than once a month is not considered de minimis personal use.
• Qualified Nonpersonal Use Vehicle – See State Controller Guidance “Taxability of State-Owned Vehicles”
• Requirement to Commute – See State Controller Guidance, “Taxability of State-Owned Vehicles”
• Traveling Away from Home – See State Controller Guidance, “Taxability of State-Owned Vehicles”
• State Fleet Trip Optimizer – See State Fleet’s Document/Forms website
• Designee – An individual designated by the executive director of an agency to fulfill the statutory requirements for assignment of vehicles to state agency officers or employees in accordance with CRS 24-30-1113.

Eligibility

• An employee in the Executive Branch must meet all of the following conditions to be eligible for assignment of a state-owned vehicle: a. Assignment of the vehicle is necessary to conduct official and legitimate state business, and,
• Assignment of the vehicle satisfies as least one of the following requirements:
  • The vehicle meets the federal internal revenue service definition of Qualified non-personal use in 26 CFR 1.274-5(k), or
  • The assignment of the vehicle is the most cost-efficient means of transportation, as defined in this policy.
• Personal use, outside of employees who are required to commute or de minimis use, is not allowed.

Qualified Non-personal Use Vehicle

See State Controller Technical Guidance “Taxability of State-Owned Vehicles.” 

Most Cost Efficient means of Transportation

• Employees with State-assigned vehicles must meet the minimum required utilization for the utilization classification associated with the vehicle’s intended work function. See Division of Central Services Rules 1 CCR 103-1, Section 6.00
• For State-assigned vehicles that do not meet the minimum utilization and do not have justification for low utilization, permanent assignment may be revoked immediately, and the employee shall use the State Fleet Trip Optimizer to determine the most efficient means of transportation for their trip.  
• For motor pool vehicles, employees shall use the State Fleet Trip Optimizer to determine the most efficient means of transportation for their trip.

Assigned Authorization

• The authorization for assignment of a state-owned vehicle shall be based on the requirements outlined in CRS 24-30-1113.  
• The assigned authorization form must be completed regardless of taxable status.
  • Qualified Non-personal Use employees are not required to submit a Cost Analysis as part of their assignment.
  • All other assignments must include a Cost Analysis, utilizing either the State Fleet Trip Optimizer, that shows “Assigned State Vehicle” as the lowest cost option for the State or equivalent documentation, such as the justification provided to State Fleet Management for acquiring a vehicle.
  • The initial form must be completed within 30 days of assignment.
  • The form must be completed by the executive director of the agency or their designee 
    • All designees must be reported to the Office of the State Controller. These should be the only persons completing the Assigned Authorization form.
• All authorizations must be re-authorized annually in compliance with CRS 24-30-1113 (4)
  • The Office of the State Controller will perform a review with each agency to ensure each assigned authorization’s justification and Cost Analysis are still applicable and in force.
    • The review will begin on the first business day of March and the agency must complete their re-authorization by the end of the month.
    • The Office of the State Controller will provide the outline for required documentation that must be completed during the review.
    • The review shall contain, at a minimum, the following: 
      • Employee Name
      • Employee Identification Number
      • Justification for assignment
      • Cost Analysis (if not Qualified non-personal Use)
    • Employees who are no longer authorized will be removed from the agency’s list at this time
    • For the 2019 re-authorization, agencies shall submit all assigned authorizations with the new form to bring them up to date. All authorizations must be updated by 5/31/2019.

Tax Treatment

• Use of State-owned vehicles may be classified as exempt, taxable subject to commuting rule, or taxable subject to lease value rule.  Employees who use a State-owned vehicle while Traveling Away from Home are not commuting and not subject to tax.  See State Controller Technical Guidance “Taxability of State-Owned Vehicles.” 

Tax Valuation

• Agencies shall use the either the commuting rule or lease value rule to compute the taxable benefit to employees.  See State Controller Guidance “Taxability of State-Owned Vehicles.” 

Tax Reporting

• Commuting Rule
  • Reporting - Employees using State-owned vehicles who are subject to the commuting rule shall document the State purpose of using the State vehicle, and shall report the number of one-way commutes each month.
    • The Office of the State Controller has provided a Google Form to assist agencies with reporting. This form is not mandated but if agencies do not use the form, they will still need to be able to report on actual one-way commutes by their employees.
  • Timing – Employees shall submit the number of one-way commutes each month by the 5th working day of the following month to their department’s payroll office.
• Lease Value Rule
  • Employees subject to the Lease Value Rule shall:
    • Reporting - Maintain written records made at the time of each use for a State purpose (business use).  These employees shall also maintain records of personal miles and total miles driven each month.
      • The Office of the State Controller has provided a Google Form to assist agencies with reporting. This form is not mandated but if agencies do not use the form, they will still need to be able to report on personal and total miles driven each month.
  • Timing - Submit the personal and total miles driven in the month to the department’s payroll office by the 5th working day of the following month.  
• Valuation of Taxable Benefit for Commuting and Lease Value Rule - See State Controller Technical Guidance “Taxability of State-Owned Vehicles.”
• The Office of the State Controller will be conducting monthly audits of reported commuting, payroll records, and assigned authorizations. Any discrepancies will be addressed directly with agencies and documented for statute compliance. 
   

 State Controller Policies

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