Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
Sets States 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 Section 2 of P.L.1980, c.19 (C.52:14-17.1a) is repealed.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 will be the same as the standard mileage rate established by the federal Internal Revenue Service (IRS) for the deductible cost of operating an automobile for business purposes.
State law provides 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. Annual appropriations acts have adjusted this mileage reimbursement rate. Currently, the rate is 31 cents per mile for FY 2016-2017. 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 law would be adjusted twice each year to reflect changes in the price of gasoline.