2nd Judge Denies City's Request In Take-Home Car Controversy

Yes, it does - income is taxed. Because this money isn't reimbursement, it can just go into your pocket. Of course, you can then write off your uniforms and such, and get it back, essentially. Don't believe me, talk to a CPA. (Not a "tax preparer" - someone who actually knows the law.) I did.

Same reason the incentive pay is taxed, it is INCOME.