Daniels’ workers paid tax on rides

8 anted up for use of state cars

 Arkansas Democrat-Gazette/STEVE KEESEE 3/28/07 Arkansas Secretary of State Charlie Daniels (left) speaking in favor of SB855, concerning procedures and deadlines for elections, with the House sponsor, state Rep. Steve Harrelson, listening in the House Committee on State Agencies and Govermental Affairs Wednesday.
Arkansas Democrat-Gazette/STEVE KEESEE 3/28/07 Arkansas Secretary of State Charlie Daniels (left) speaking in favor of SB855, concerning procedures and deadlines for elections, with the House sponsor, state Rep. Steve Harrelson, listening in the House Committee on State Agencies and Govermental Affairs Wednesday.

— Secretary of State Charlie Daniels said he didn’t know he was supposed to pay income taxes for his personal use of his taxpayer-provided vehicle. But he had eight employees who were paying such taxes.

Daniels is one of the state constitutional officers who said they will pay income taxes for using state cars after Arkansas Democrat-Gazette articles reported that they weren’t doing so.

But Daniels is the only one of the seven constitutional officers who said he had employees who were paying taxes for personal use when the boss wasn’t.

Sandra McGrew, a spokesman for Daniels, confirmed that eight secretary of state employees paid taxes on their personal use of state cars. Daniels was not treated the same as his employees, McGrew said, and “assumed he was exempt.”

“His accountant assumed the same because typically these taxes are withheld by one’s employer,” McGrew said.

“Taxes were not withheld [from Daniels’ pay] by the [state] auditor,” she said, adding, however, that “the auditor is not to blame.”

Daniels was in the dark partly because “this is an issue that hasn’t been examined before” the newspaper delved into it, McGrew said.

The newspaper articles cited state and federal tax authorities saying that personal use of public vehicles amounts to income that is taxable.

“Charlie was unaware that he wasn’t exempt,” McGrew said.

“Now that he knows, he is going to pay taxes on the vehicle, including any back taxes that he owes.”

Daniels uses a 2008 Chevrolet Suburban.

The secretary of state employees who paid income taxes for use of state cars, Mc-Grew said, are Chief Deputy Peggy Gram, Deputy Secretary of State Janet Harris, Deputy Secretary of State Cathy Bradshaw, Building and Grounds Director Steve Brummett, Mechanical and Electrical Director Jim Comer, Building and Grounds Manager John Simmons, Building and Grounds Supervisor John Wallace and Mechanical and Electrical Supervisor Jason Bates.

Gram uses a 2009 Buick Enclave, Harris a 2009 Chevrolet Trail Blazer, Bradshaw a 2008 GMC Envoy, Brummett a 2008 GMC Sierra, Comer a 2006 GMC Sierra 1500 4WD Crew, Simmons a 2006 Chevrolet Z71, Wallace a 2004 Z71, and Bates a 2004 Chevrolet Silverado, according to a list provided by McGrew.

The office has 29 vehicles, more than the office had under Daniels’ predecessor because the scope of the office’s responsibilities has changed, she said.

For example, the federal Help America Vote Act dramatically increased the amount of in-state travel that staff members take because of training, education and serving the county clerks’ voter registration network, she said.The office is uncertain how many more vehicles it has than it had under Daniels predecessor, Sharon Priest, because records from eight years ago are not available, she said.

The secretary of state’s office has the most vehicles among the constitutional officers (governor, lieutenant governor, attorney general, secretary of state, land commissioner, auditor and treasurer), according to the offices.

ATTORNEY GENERAL

Attorney General Dustin McDaniel’s office has 16 vehicles, four of which are assigned to individual employees in the Special Investigations Division, which has a policy prohibiting personal use of assigned law enforcement vehicles, said McDaniel spokesman Aaron Sadler.

Personal use of vehicles is not allowed in the attorney general’s office, he said.

McDaniel reimbursed the state last week for personal use miles he’d accrued, and he turned in a state vehicle, Sadler said. McDaniel wrote a check to the state for nearly $3,000 for past personal use.

LAND COMMISSIONER

Land Commissioner Mark Wilcox’s office has nine vehicles, said WIlcox’s spokesman Mary Sue Whitelaw. Wilcox has used a state 2008 Toyota Sequoia to commute to and from his Wooster home in Faulkner County and a state 2006 Chevrolet Silverado at his farm at Greenbrier.

As to whether Wilcox or any of his employees pay taxes on personal use of state vehicles, Whitelaw said Wilcox uses a car he and his wife own for personal miles.

“He has not been paying taxes on his use of his state vehicle, but he plans to do so according to the rules and regulations of the IRS,” she said.

As for whether the Wilcox employees have made personal use of state vehicles and paid taxes on it, she said, “that is their personal information which we do not have access to. To the best of our knowledge, no state vehicles have been used for personal travel.”

AUDITOR

State Auditor Jim Wood has said he would start paying taxes for personal use of his state vehicle and will pay them as far back as his accountant advises.

He also has said he’ll keep track of all personal miles that he drives in his state-issued vehicle, a 2007 Lincoln Town Car.

The auditor’s office has three other vehicles, none assigned to particular employees, or for personal use, said Larry Crane, Wood’s chief deputy.

OTHERS

State Treasurer Martha Shoffner has said she will pay income taxes on personal use of her state vehicle, a 2009 Chevrolet Tahoe. The office’s two other vehicles are “pool vehicles” not assigned to particular employees and not for personal use, said Karla Shepard, Shoffner’s chief deputy.

Gov. Mike Beebe’s office doesn’t have any vehicles assigned to the gubernatorial staff, said Beebe spokesman Matt DeCample.

Staff members check out vehicles from the Finance Department’s motor pool for business travel or are reimbursed for business trips taken in their personal vehicles, DeCample said.

Beebe is exempt from paying taxes on personal vehicle use because he doesn’t get a state vehicle but is, instead, driven around by members of the Arkansas State Police security detail in accordance with state law protecting Arkansas governors.

Lt. Gov. Bill Halter was the only state constitutional officer who said he was paying income taxes on personal use of his state vehicle when the newspaper initially inquired about it. Other than Halter, there is no personal use by the staff of the one vehicle assigned to the office, said Halter spokesman Garry Hoffmann.

Front Section, Pages 1 on 07/22/2010

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