4.1. ERMUSR 05-12-2009 - Laserfiche WebLink

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,~geesu~r Z ~ '~ a yt `' $EYENV~ TAX EXEMPT AND GOVERNMENT ENTITIES DIVISION Date: 4/30/09 Ms. Theresa Slominski Elk River Municipal Utilities 13069 Orono Parkway, P.O. Box 430 Elk River, MN. 55330-0430 Dear Ms. Slominski: DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE WASHINGTON. D.C. 20224 This is in response to your email dated April 30, 2009, requesting clarification on the following vehicle fringe benefit questions: We would like clarification on these items in the form of a memo: 1) Utility vehicles are not exempt as public safety/emergency response vehicles (we had thought they were previously) 2) Retroactive pay will not be necessary if we implement taxation moving forward, 3) The commuting rule rate of $1.50 per trip is applicable for proper taxation of the vehicles 4' The security van is exempt as a qualified vehicle S, .'or the proper taxation of vehicles per employee, is the same rule to be applied to everyone or can it be case by case? (If everyone doesn't qualify for the commuting rule, can we select FMV or mileage individually? How is that determined which rule to apply?) To recap, we have an electric on-call vehicle where the individual is paid to "engage to wait" and takes a phone and vehicle for the week to respond to any calls. We have a rotation of employees who use the same on-call vehicle (a pickup.) We also have a water on-call individual (engaged to wait) in a rotation that takes a phone and their designated work truck (pickup) that is assigned to them. This on-call vehicle is different week to week depending on the employee. The security vehicle is a van that has been tnodified with shelving instead of seats and is taken home every evening. This is one employee that is responsible for all aspects of the security "business" and takes calls 24/7 and responds appropriately. This employee is waiting to engage, ie is not paid an additional stipend to be on-call 24/7. Currently there are four managers that take a vehicle home and are waiting to engage in that they would be required to respond to any emergency situation. 'Thanks so much for your help. Please let us know if you have additional questions. Theresa, Troy Response ~1. Utility vehicles are not public safety/emergency response vehicles. To be a qualified nonpersonal use vehicle the vehicle must be a clearly marked public safety officer vehicle that is required to be used for commuting by a public safety officer as defined in section 402(1)(4)(C) who, is on call all the time, provided that any personal use (other