County discusses IRS consequences of employees taking cars home

In a recent Weber County Commission Work Session held via Zoom, officials discussed the implications of employees using county vehicles for personal use, revealing a significant oversight in current policy. The meeting, which took place on March 17, 2025, highlighted the need for clarity regarding IRS regulations that classify personal use of county vehicles as a taxable event.

Scott Park, along with fellow commissioners, addressed the issue after receiving inquiries from other counties about their vehicle policies. It was discovered that 11 employees, excluding public safety officers, were taking county vehicles home, which had not been previously reported for tax purposes. This oversight could lead to complications, as the IRS mandates that such use must be documented on employees' W-2 forms, potentially affecting their taxable income.

The discussion centered on two main options: prohibiting employees from taking vehicles home or reporting the personal use on their W-2s. The latter would result in employees facing a decrease in their net pay due to the additional tax burden. The commissioners expressed concern about the impact this could have on employee morale, as many have come to rely on this practice as a benefit of their employment.

Commissioner Sean Harvey emphasized the importance of allowing employees to take vehicles home for efficiency, particularly in emergency situations. He suggested that if the county requires employees to take vehicles home for legitimate work-related reasons, they could apply a different tax calculation that would lessen the financial impact on employees.

The meeting also touched on the potential for providing employees with an option to either continue taking vehicles home with the understanding of the tax implications or to leave the vehicles at the county. This approach aims to avoid surprising employees with unexpected tax liabilities while maintaining operational efficiency.

As the discussion concluded, the commissioners recognized the need for further research, particularly regarding specific roles, such as animal control, which may not fit neatly into existing categories. The outcome of this meeting will likely lead to policy adjustments that balance IRS compliance with employee benefits, ensuring that county operations remain effective while addressing the financial concerns of its workforce.

Next steps will involve drafting a clear policy that outlines the rules surrounding vehicle use and the associated tax implications, with the goal of fostering transparency and fairness for all employees.