New Jersey Assembly Bill A2294

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

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

Impact

The adoption of this bill would amend existing statutes concerning the reimbursement process for mileage driven by state employees. By adopting the IRS rate, state employees would be compensated more fairly for business-related travel. This could lead to increased satisfaction among employees who often find their out-of-pocket costs for using personal vehicles for work purposes are not adequately compensated under the existing system.

Summary

Assembly Bill A2294 proposes to align New Jersey's mileage reimbursement rate for state officers and employees with the standard mileage rate set by the Internal Revenue Service (IRS). This change aims to simplify and standardize the process of compensation for employees using their personal vehicles for state business. Currently, the state rate is fixed at 18 cents per mile and is adjusted biannually based on gasoline prices. A2294 seeks to eliminate this fixed rate and instead tie reimbursement directly to the fluctuating IRS rate, which is considered more reflective of actual vehicle operating costs.

Contention

While the bill appears to enhance fairness in compensation, discussions surrounding A2294 may reflect concerns over state budget implications. Some argue that linking the reimbursement rate to the IRS rate could result in increased state expenditures during periods of high travel or gasoline prices. Critics might express worries that there are existing fiscal constraints that could be exacerbated by the enhanced reimbursement, calling for a careful assessment of potential budget impacts before enacting this change.