Bill Text: NJ A2439 | 2010-2011 | Regular Session | Introduced
Bill Title: Sets State's mileage reimbursement rate at IRS rate for business use of automobile.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-03-04 - Introduced, Referred to Assembly State Government Committee [A2439 Detail]
Download: New_Jersey-2010-A2439-Introduced.html
Sponsored by:
Assemblywoman CHARLOTTE VANDERVALK
District 39 (Bergen)
Assemblyman ROBERT SCHROEDER
District 39 (Bergen)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
SYNOPSIS
Sets State's mileage reimbursement rate at IRS rate for business use of automobile.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning mileage reimbursement to State officers and employees, amending P.L.1943, c.188 and repealing section 2 of P.L.1980, c.19.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1 Section 1 of P.L.1943, c.188 (C.52:14-17.1) is amended to read as follows:
1. All mileage in lieu of actual expenses of transportation allowed an officer or employee of the State traveling by [his] the person's own automobile on official business away from [his] the person's designated post of duty or official station shall be at the standard mileage rate [of $0.18 per mile unless otherwise adjusted by law] set by the federal Internal Revenue Service, or its successor, and in effect at the time the expense is incurred, to calculate deductible costs of operating an automobile for business purposes.
(cf: P.L.1980, c.19, s.1)
2. Section 2 of P.L.1980, c.19 (C.52:14-17.1a) is repealed.
3. This act shall take effect immediately.
STATEMENT
This bill provides that the mileage reimbursement rate payable to a State officer or employee driving a private automobile on State business shall be the same as the standard mileage rate established by the Internal Revenue Service (IRS) for the deductible cost of operating an automobile for business purposes (34.5 cents per mile for 2001).
Since 1980, the permanent law has provided that the State's mileage reimbursement rate would be 18 cents per mile and that this rate would be adjusted biannually to reflect changes in gasoline prices. Since 1990, each Annual Appropriations Act has provided, instead, that the mileage reimbursement rate for the fiscal year will be 25 cents per mile. It appears that this rate was originally selected because it was the same as the mileage deduction allowed by the IRS for business travel during 1990. For Fiscal Years 2001 and 2002, the rate has been $0.31 per mile. While the IRS rate has been periodically adjusted for inflation, the State rate has not been so increased. Accordingly, it is necessary to establish the State's rate at the same level as the IRS rate (as adjusted periodically for inflation) in order to fairly compensate State officers and employees who drive their own vehicles on public business.
The bill repeals N.J.S.A.52:14-17.1a which provides that the $0.18 per mile rate in the permanent statute would be adjusted twice each year to reflect changes in the price of gasoline.
