Bill Text: NJ AR130 | 2022-2023 | Regular Session | Introduced
Bill Title: Encourages federal Internal Revenue Service to increase standard mileage reimbursement to alleviate economic hardship resulting from rising gas prices.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-24 - Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee [AR130 Detail]
Download: New_Jersey-2022-AR130-Introduced.html
Sponsored by:
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
SYNOPSIS
Encourages federal Internal Revenue Service to increase standard mileage reimbursement to alleviate economic hardship resulting from rising gas prices.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution encouraging the federal Internal Revenue Service to increase the standard mileage reimbursement to alleviate the economic hardship resulting from rising gas prices.
Whereas, Federal law permits taxpayers to deduct costs related to the operation of an automobile for certain business, charitable, medical, or moving expense purposes; and
Whereas, Taxpayers who are eligible for the deduction are permitted to calculate their deduction by using either (1) the actual expenses they incurred for operating a vehicle or (2) the optional standard mileage rates issued by the federal Internal Revenue Service (IRS) for the taxable year; and
Whereas, Every year, the IRS provides a notice of the optional standard mileage rates available for purposes of the deduction; and
Whereas, The IRS bases the standard mileage rates for business, medical, and moving expense purposes on annual changes in the costs of operating an automobile, including costs for fuel, while the standard mileage rate for charitable purposes is set by statute; and
Whereas, On December 17, 2021, the IRS announced that beginning on January 1, 2022, the standard mileage rates for the use of an automobile would be 58.5 cents per mile driven for business use, 18 cents per mile driven for medical purposes or for moving purposes for qualified active-duty members of the United States Armed Forces, and 14 cents per mile driven in service of charitable organizations; and
Whereas, Approximately two months after the IRS issued this notice, Russia launched an unprovoked invasion of Ukraine, resulting in widespread condemnation by the world's democracies and the issuance of unprecedented economic sanctions against Russia; and
Whereas, These economic sanctions include a federal ban on the import of Russian oil to the United States; and
Whereas, Since the Russian invasion of Ukraine, the average price of gas in New Jersey has skyrocketed from approximately $3.615 to $4.248 per gallon; and
Whereas, The IRS can help alleviate the economic hardship resulting from rising gas prices in the State and nationally by increasing the standard mileage reimbursement rate; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully
encourages the federal Internal Revenue Service to increase the standard
mileage reimbursement to alleviate the economic hardship resulting from rising
gas prices.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Commissioner of the Internal Revenue Service.
STATEMENT
This resolution encourages the federal Internal Revenue Service (IRS) to increase the standard mileage reimbursement to alleviate the economic hardship resulting from rising gas prices.
Federal law permits taxpayers to deduct costs related to the operation of an automobile for certain business, charitable, medical, or moving expense purposes. Taxpayers who are eligible for the deduction are permitted to calculate their deduction by using either (1) the actual expenses they incurred for operating a vehicle or (2) the optional standard mileage rates issued by IRS for the taxable year.
Every year, the IRS provides a notice of the optional standard mileage rates available for purposes of the deduction. The IRS bases the standard mileage rates for business, medical, and moving expense purposes on annual changes in the costs of operating an automobile, including costs for fuel, while the standard mileage rate for charitable purposes is set by statute. On December 17, 2021, the IRS announced that beginning on January 1, 2022, the standard mileage rates for the use of an automobile would be 58.5 cents per mile driven for business use, 18 cents per mile driven for medical purposes or for moving purposes for qualified active-duty members of the United States Armed Forces, and 14 cents per mile driven in service of charitable organizations.
Approximately two months after the IRS issued the December 17, 2021 notice, Russia launched an unprovoked invasion of Ukraine, resulting in widespread condemnation by the world's democracies and the issuance of unprecedented economic sanctions against Russia. These economic sanctions include a federal ban on the import of Russian oil to the United States. Since the Russian invasion of Ukraine, the average price of gas in New Jersey has skyrocketed from approximately $3.615 to $4.248 per gallon.
