CITY OF BEAUMONT - Policies and Procedures - 7.8 Auto Allowance

Sep 16, 2026

Uploaded by Aurelia

Policy 7.8 sets uniform guidelines for City employees assigned a take-home vehicle, defining auto allowance and mileage reimbursement as methods to compensate employees who use personal vehicles for recurring City business. It clarifies vehicle classifications (exempt vs. non-exempt) and how federal criteria and daily tax assessments create employee tax liability for non-exempt vehicles. The policy states eligibility, requires approvals through department directors and the City Manager, and outlines responsibilities including insurance, valid driver’s licenses, record handling, and reimbursement procedures.

LanguageEnglish

CategoryForms

FormatPDF

Pages9

Reading Time3 min

AccessFree to download

PURPOSE

DEFINITIONS

ELIGIBILITY

PROCEDURES

RESPONSIBILITIES

# CITY OF BEAUMONTPOLICIES AND PROCEDURES Policy Number: 7.8 Auto Allowance,Mileage Reimbursement Effective Date:03/09/18 Subject: &City Vehicle Kyle Hayes/03-09-18 Cersonelirector/Date Approved by: City Manager/Date I. ## PURPOSE A.The purpose of this policy is to provide uniform guidelines and procedures for Cityemployees who are assigned a take-home vehicle,receive an auto allowance ormileage reimbursement. ## II. DEFINITIONS A. Auto Allowance -A monthly payment given to employees who use their personalvehicle to conduct City business on a recurring basis. B. Mileage reimbursement -Reimbursement given to employees who utilize theirpersonal vehicle to conduct City business.Reimbursement is paid on a per milebasis. C. Take-home Vehicle-Any vehicle that is owned,leased,rented or otherwise underthe care,custody or control of the City and is taken from the City premises afternormal working hours to remain in “home storage”overnight for the use of a Cityemployee for a bona fide City purpose. D. Bona fide City Purpose -A bona fide City purpose is conducting official Citybusiness only.Bona fide City purpose does not include personal use or assignmentofa take-home vehicle as a benefit or as compensation. E.Exempt Vehicle -According to Federal guidelines and for purposes of taxcalculation only,certain vehicles,particularlyemergency and utility servicevehicles(normally not to include pick up trucks or vans),designated by Federal law areexempt for the purpose of increased tax liability.This exemption means that thetaxable income of the employee assigned one of these vehicles will not be affected.(See Attachment A for a list ofexempt vehicles as outlined in the Federal RegisterVol.50No.215/Public Law 99-44) 7.8 Auto Allowance NOTE:Texas State law requires that all City vehicles be identified by externalmarking.There is an exception to the markings requirement for police vehicleswhen used for the purpose of performing official duties. F. Non-exempt Vehicles -According to Federal guidelines and for the purpose of taxcalculation only,all other vehicles of the City that are not listed on Attachment Aand do not meet the criteria to be exempt vehicles are classified as non-exempt.These vehicles normally include pickup trucks and vans.Employees who areassigned non-exempt vehicles will incur a tax liability. G. Tax Liability-An employee who has a non-exempt take home vehicle will have anassessment,as set by the Federal government each year,added to their taxableincome for each day of use.This assessment will only be added for the days thevehicle is used.not to include vacation,short term disability or holidays.Theassessment amount is added to the employee's taxable income only for the purposeof calculating the tax liability.The employee assigned the use of the non-exempttake home vehicle will be responsible for the tax on the assessed amount. ## I. ELIGIBILITY A. Employees who use their vehicles extensively for City-related business will beeligible for reimbursement of automobile expenses.Reimbursement of autoexpenses may be paid to the employee on a monthly basis,determined by usage oron a per mile basis. B. Recommendations for monthly auto allowance shall be processed through theappropriate Department Director on the prescribed form.(Attachment B). C. Allmonthly auto allowances are subject to approval of the City Manager. D. Department Directors are responsible for ensuring that all employees who operatetheir personal vehicle while on City business have proper insurance and a currentdriver's license as required by state statutes.Department Directors are alsoresponsible for ensuring that changes to the list of authorized personnel areapproved by them as well as approved by the City Manager.An updated list shouldbe submitted to the Personnel Department and the Finance Department E. Employees whose driver's license has been suspended or revoked will not beeligible fo

FAQs

What is the difference between auto allowance and mileage reimbursement under Policy 7.8?

Auto allowance is a monthly payment for employees who use personal vehicles for City business on a recurring basis. Mileage reimbursement compensates employees at a per-mile rate for City business use.

What qualifies a vehicle as exempt or non-exempt for tax purposes?

Exempt vehicles are identified under federal guidelines for tax calculation purposes only. Vehicles not listed as exempt and not meeting exempt criteria are classified as non-exempt, which can create tax liability for employees.

How do employees become eligible for reimbursement or auto allowance?

Employees who use personal vehicles extensively for City-related business may qualify. Monthly auto allowance recommendations must be processed through the appropriate Department Director on the prescribed form and approved by the City Manager.

Sep 16, 2026

Uploaded by Aurelia