A. IRS rulings dictate how vehicle allowances are to be treated. This policy provides the simplest, least time consuming process of providing vehicle allowances.
B. The IRS rulings indicate that payment is subject to social security withholdings and is taxable income.
C. Employees receiving a vehicle allowance must also comply with all the provisions of policy 1550, "Use Of Personal Vehicle For City Business", of this manual. (Eff. 12-13-2007)