New Jersey 2026-2027 Regular Session

New Jersey Senate Bill S265

Introduced
1/13/26  

Caption

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

Impact

Currently, the state's mileage reimbursement rate is fixed at $0.18 per mile and is subject to adjustments twice a year based on gasoline prices. This bill proposes to eliminate the biannual adjustment requirement and instead match the reimbursement rate directly to the IRS's established standard mileage rate. This could lead to more consistent and potentially higher reimbursements for state employees, aligning state policies with federal guidelines.

Summary

Senate Bill 265 aims to establish the mileage reimbursement rate for state officers and employees who use their personal automobiles for official state duties. The bill modifies existing legislation to set the reimbursement rate at the same rate as the standard mileage rate announced by the Internal Revenue Service (IRS). This change is intended to simplify the process of reimbursing state employees and ensure that they are compensated accurately for the costs incurred while using their vehicles for business purposes.

Contention

A notable point of contention surrounding this bill may arise from concerns about the financial implications for the state budget. Eliminating the fixed reimbursement rate and aligning it with the IRS rate could increase costs, particularly if the IRS mileage rate rises significantly in the future. Stakeholders may debate whether this new approach will result in a fair compensation structure for state employees or financially strain the state's budget. Additionally, legislators might explore how these changes will affect various departments differently, given varying levels of automobile use across state roles.

Companion Bills

NJ S2589

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

NJ A3866

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

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