1 Colo. Code Regs. § 101-1-9-7
Current through Register Vol. 48, No. 1, January 10, 2025
Rule 1 CCR 101-1-9-7 - ASSIGNMENT OF STATE-OWNED VEHICLES1.AUTHORITY§24-30-1112, C.R.S. (Permanent Assignment of Vehicles)
§24-30-1113. C.R.S. (Assignment of Vehicles to State Agency Officers or Employees)
Internal Revenue Service Publication 15-B (Employer's Tax Guide to Fringe Benefits)
Internal Revenue Service Publication 5137 (Fringe Benefit Guide, Office of Federal State and Local Governments)
2.DEFINITIONS2.1. Eligibility - The State employee meets the eligibility requirements for assignment of a State vehicle as provided in this Fiscal Rule.2.2. State Business - See Fiscal Rule 5-1 (Travel).2.3. State Fleet - State Fleet Management, in the Division of Central Services, Department of Personnel & Administration.2.4. Taxability - The use of the State-assigned vehicle may be either taxable or non-taxable, depending on the facts and circumstances.2.5. Technical Guidance - Technical guidance on the Taxability of State-assigned vehicles prepared by the Office of the State Controller and based on the Internal Revenue Code and its implementing regulations.2.6. Transportation - See Fiscal Rule 5-1 (Travel).3.RULEState Agencies and Institutions of Higher Education shall comply with Eligibility requirements for assigning State-owned vehicles. If a State employee does not meet the Eligibility requirements, the State Agency shall not assign a State-owned vehicle to that employee.
State Agencies shall comply with the Taxability of assignment of State-owned vehicles included in the Technical Guidance and the Internal Revenue Code and its implementing regulations.
State Agencies shall submit annual documentation of compliance with both Eligibility requirements and Taxability requirements for assignment of state-owned vehicles.
3.1. Eligibility for Assignment of State-owned vehicles3.1.1. A State employee must meet all of the following conditions to be eligible for assignment of a State-owned vehicle:3.1.1.1. Assignment of the vehicle is necessary to conduct official and legitimate State Business, defined in Fiscal Rule 5-1 (Travel); 3.1.1.2. Assignment of the vehicle satisfies at least one of the following requirements: 3.1.1.2.1. The vehicle meets the Internal Revenue Service definition of qualified nonpersonal use in 26 CFR 1.274-5(k);or3.1.1.2.2. The assignment of the vehicle is the most cost-efficient means of Transportation, as defined in this Fiscal Rule.3.2. Responsibilities of State Agencies 3.2.1. A Chief Executive Officer or designee of a State Agency shall authorize the assignment of a State vehicle to a State employee of that State Agency.3.2.2. Each State Agency shall maintain documentation of the assignment of the State vehicle, including the Chief Executive Officer's justification for authorizing the assignment of the vehicle.3.2.3. Each year, on or before October 1, the Chief Executive Officer of a State Agency, or a designee of that individual, shall review each assignment of a vehicle to ensure the assignment complies with the Eligibility requirements in this Fiscal Rule, the Taxability requirements in the Technical Guidance, and the Internal Revenue Code and its implementing regulations. Each State Agency shall send this information to the Office of the State Controller and to State Fleet.3.3. Responsibilities of the Department of Personnel & Administration (DPA) 3.3.1. The Office of the State Controller and State Fleet shall review the information submitted by the State Agencies and Institutions of Higher Education for the initial application and for subsequent annual renewals. The Office of the State Controller and State Fleet shall: 3.3.1.1. Verify that the assignment of the vehicles complies with the Eligibility requirements of State vehicles; and 3.3.1.2. Verify that the Taxability complies with the Technical Guidance and the Internal Revenue Code and its implementing regulations.3.3.2. If the verification process establishes that the assignment of a vehicle no longer complies with the Eligibility requirements of State vehicles, then DPA shall revoke the assignment of the vehicle.3.4. Cost Analysis 3.4.1. State Fleet has developed a spreadsheet for State Agencies to evaluate whether use of State vehicles or the use of the employee's personal vehicle is the most cost efficient means of Transportation. 3.4.2. State Agencies shall submit this spreadsheet with the initial application and annual reviews to the Office of the State Controller and State Fleet.3.5. Taxability of State-Assigned Vehicles3.5.1. Any Elective Officer or State employee who is assigned a State-owned vehicle because it is the most cost-efficient means of Transportation receives a taxable fringe benefit and the State Agency shall include the value of this fringe benefit in the income of the Elective Officer or State employee.3.5.2. The Technical Guidance the Office of the State Controller should be followed by all State Agencies, branches of government, and Institutions of Higher Education. Principal Departments shall follow policies on State-Assigned Vehicles issued by State Fleet and the Office of the State Controller.41 CR 19, October 10, 2018, effective 11/1/201845 CR 11, June 10, 2022, effective 7/1/202246 CR 11, June 10, 2023, effective 7/1/202347 CR 08, April 25, 2024, effective 7/1/2024