Sets State's mileage reimbursement rate at IRS rate for business use of automobile.
If enacted, the bill would simplify the reimbursement process for state employees by standardizing the rate to reflect federal guidelines, potentially making reimbursement more predictable and fair across various circumstances. This change is expected to ease budgeting for the state when it comes to reimbursements related to transportation, aligning state statutes more closely with federal practices. It moves away from a system that required adjustments based on fluctuating gasoline prices, reducing administrative overhead.
Assembly Bill A3866 aims to adjust the state's mileage reimbursement rate for officers and employees using their personal automobiles for state business. The bill proposes to align New Jersey's mileage reimbursement rate with the standard mileage rate set by the federal Internal Revenue Service (IRS), thereby removing the current fixed rate of $0.18 per mile that is subject to adjustment biannually based on gasoline prices. This move is positioned as an effort to provide fair compensation for the costs incurred by state employees during their official duties.
While adjusting to the IRS standard may be appealing, there could be notable points of contention regarding the removal of the biannual adjustments. Critics of the bill may argue that not adjusting for gasoline price fluctuations could lead to reimbursement rates that inadequately cover the actual costs incurred by employees over time, particularly in periods of rising fuel prices. Therefore, the balance between fair compensation and fiscal responsibility remains a key discussion point among legislators and stakeholders in this jurisdiction.