§ 62-130. Purpose.

(a)

Garland County, Arkansas recognizes that the performance of certain job responsibilities may be enhanced by or may require the use of a cellular (cell) phone or a smartphone. The IRS considers these devices to be "listed property." As such, IRS regulations (IRS Section 274(d) 4) require detailed record keeping including (a) the amount of the expense, (b) the time and place of the call, and (c) the business purpose for the call. The IRS can declare that all undocumented use of a cell phone is personal and should be taxed as wages, even if the majority of the calls are for business purposes.

(b)

In order to comply with IRS rules regarding the taxable nature of cell phone usage by employees, as of August 8, 2016, Garland County, Arkansas will issue a cell phone stipend for those employees who hold positions where the duties of that position require the use of a cell phone. The benefits of such an approach include:

(1)

A call log is not required;

(2)

Monthly reporting is not required;

(3)

A single phone may be used for both personal and business purposes.

(4)

The stipend is considered taxable income to the employee.

(Ord. No. O-16-53, § 1(Exh. A), 8-8-2016)