Take-home vehicle

There are three main reasons which explain why the provision of a company car for private use as a benefit may be attractive for both the employee and the employer. • The first reason is that companies can supply the fringe benefit at lower costs than the employee is able to achieve on their own – and consequently pass it on to the employee. • Secondly, the tax system may encourage the provision of cars over monetary remuneration from the perspective of both the employer and employee. Ways on how this can be encouraged include tax benefits (tax deductions and depreciation write-offs) • Thirdly, firms may want the employee to drive in a car of certain minimum standard or have access to a suitable vehicle at all times. ==Usage by police departments==

Police departments are among frequent participants in take-home vehicle programs, allowing officers to take home the police cars they use while on duty. It is considered to be a fringe benefit by the departments. It has been viewed by some departments as a crime-fighting tool, given its cost. == Issues with take-home vehicles ==

Economic distortions There is a straightforward distortion in consumer markets as consumers through tax incentives are being encouraged to consume more car services than they would have been otherwise. In the city of Baltimore, the use of take-home vehicles by city employees has been questioned due to the distance that city employees drive them to their homes. It was determined in a report that two-thirds of city employees drive their vehicles outside city limits, some more than 100 mi (160 km) from the city, and the cost to taxpayers, which included fuel, was high. Baltimore's former mayor Sheila Dixon was also criticized for having three tax-funded take-home vehicles parked at her house. She defended herself by saying she might need the vehicles if there were an emergency. In Dallas, the city was having trouble obtaining data in attempting to determine the cost of take-home vehicles to taxpayers. The city of Los Angeles was criticized for issuing take-home vehicles to utility employees while raising rates to customers, though the city stated it would be a minuscule part of the budget. The city of Evansville, Indiana reduced the number of take-home vehicles offered to city employees, but allowed public safety employees to keep theirs. ==See also==