New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A5680

Introduced
6/28/23  

Caption

Sets States mileage reimbursement rate at IRS rate for business use of automobile.

Impact

The implementation of A5680 is designed to ensure that State employees are fairly compensated for their travel expenses using personal vehicles on government business. By aligning the state rate with the IRS rate, the bill seeks to protect employees from potential out-of-pocket expenses that may arise when the state rate does not keep pace with actual driving costs. This change could lead to a more equitable reimbursement process for state employees, particularly those who frequently travel for their jobs.

Summary

Assembly Bill A5680 proposes to align the mileage reimbursement rate for State officers and employees using their personal vehicles for official business with the standard mileage rate established by the federal Internal Revenue Service (IRS). Under current law, the State's reimbursement rate is set at 18 cents per mile, with adjustments made biannually to reflect gasoline price fluctuations. This bill looks to replace this fixed rate with the IRS rate, which is adjusted periodically for inflation, meaning it could vary over time based on federal guidelines.

Contention

While the bill has gained support for its intention to provide fair compensation, there may be discussions regarding the fiscal implications of adopting the IRS rate for mileage reimbursement. Critics could argue that fluctuating federal rates might lead to unpredictability in state budgeting, particularly if irregulations place higher demands on state allocations for employee reimbursements. Additionally, some may raise concerns about whether adjustments to these rates could be made swiftly enough when gas prices increase significantly, potentially placing undue financial strain on state employees in the short term.

Companion Bills

NJ S262

Same As Sets States mileage reimbursement rate at IRS rate for business use of automobile.

Previously Filed As

NJ S265

Sets State's mileage reimbursement rate at IRS rate for business use of automobile.

NJ SB26

Allow legislators to receive mileage reimbursement at IRS mileage reimbursement rates

NJ A3043

Requires medical fee schedule by automobile insurers to provide for reimbursement of certain services provided by ambulatory surgical center at rate of 300 percent of Medicare payment rate.

NJ A4570

Prohibits automobile insurers from increasing automobile insurance rates on persons deemed not at fault in automobile accidents.

NJ A1931

Prohibits use of education, occupation, and credit score as rating factors in automobile insurance underwriting.

NJ A1214

Prohibits automobile insurers from using underwriting rules to raise automobile insurance rates on persons deemed not at fault in motor vehicle accidents involving municipal vehicles.

NJ S1373

Requires medical fee schedule by automobile insurers to provide for reimbursement of certain services provided by ambulatory surgical center at rate of 300 percent of Medicare payment rate.

NJ S834

Prohibits automobile insurers from using underwriting rules to raise automobile insurance rates on persons deemed not at fault in motor vehicle accidents.

NJ A3665

Prohibits use of gap in automobile insurance coverage as rating factor in automobile insurance underwriting under certain circumstances.

NJ LD1520

An Act to Reduce the Income Tax Paid by Volunteers for Mileage Reimbursements

Similar Bills

NJ S265

Sets State's mileage reimbursement rate at IRS rate for business use of automobile.

ME LD1165

An Act to Create a Fund for Safe Disposal of Hazardous Fluids from Salvage Yards

LA HB562

Provides relative to costs for certain emergency services provided by fire departments, fire protection districts, and certain nonprofit corporations (EN INCREASE SG EX See Note)

CA SB1298

Real property tax: exemptions: religious services: parking.

NJ A3043

Requires medical fee schedule by automobile insurers to provide for reimbursement of certain services provided by ambulatory surgical center at rate of 300 percent of Medicare payment rate.

NJ S1373

Requires medical fee schedule by automobile insurers to provide for reimbursement of certain services provided by ambulatory surgical center at rate of 300 percent of Medicare payment rate.

NJ S2314

Establishes process to bar certain health care providers from receiving reimbursement under PIP.

TX HB3883

Relating to the eligibility of certain events for funding under the major events reimbursement program.