LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 262
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: SEPTEMBER 18, 2023
SUMMARY
Synopsis: Sets State’s mileage reimbursement rate at IRS rate for business use of
automobile.
Type of Impact: Annual State expenditure increase to the General Fund.
Agencies Affected: Department of the Treasury; applicable State agencies.
Office of Legislative Services Estimate
Fiscal Impact FY 2025 FY 2026 FY 2027
$2.8 million to $3.1 million to $3.4 million to
State Cost Increase
$5.6 million $6.1 million $6.7 million
 The Office of Legislative Services (OLS) estimates that this bill would increase expenditures
by $2.8 million to $5.6 million in FY 2025, $3.1 million to $6.1 million in FY 2026, and $3.4
million to $6.7 million in FY 2027.
 The OLS estimates that State employees will travel between roughly 15 million to 30 million
miles annually on official business using private vehicles.
 The State’s current reimbursement rate is 47 cents per mile; this bill would increase the rate to
the standard mileage rate established biannually by the Internal Revenue Service (IRS).
BILL DESCRIPTION
This bill provides that the mileage reimbursement rate payable to a State officer or employee
driving a private automobile on State business shall be the same as the standard mileage rate
established by the IRS for the deductible cost of operating an automobile for business purposes
(currently 65.5 cents per mile). Since 1980, the permanent law has provided 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
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
 FE to S262
2
mileage reimbursement rate. This bill repeals section 2 of P.L.1980, c.19, which provides that the
18 cents per mile rate in the law would be adjusted twice each year to reflect changes in the price
of gasoline.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS expects this bill to increase State expenditures by between roughly $2.8 million to
$5.6 million in the first full year of implementation, $3.1 million to $6.1 million in the second
year, and $3.4 million to $6.7 million in the third year. Using data from the New Jersey Open
Data Center (data.nj.gov), the OLS estimates that State employees will travel between roughly 15
million to 30 million miles annually on official business using private vehicles. The OLS
anticipates that the number of miles traveled will remain within this range over the next few years.
The OLS calculates its estimate by multiplying the FY 2024 reimbursement rate of 47 cents
per mile, as per the Fiscal Year 2024 Appropriations Act, to the high and low of the range of miles
that State employees are anticipated to travel on official business using private vehicles. The OLS
then used the same methodology to estimate the fiscal impact of this bill by using the Internal
Revenue Service’s current standard mileage rate of 65.5 cents. Conforming to the standard
mileage rate established by the IRS would increase State expenditures by approximately $2.8
million to $5.6 million for the first full year of implementation.
Assuming a three percent inflation rate, the State cost is estimated to be roughly $3.1 million
to $6.1 million in the second year of implementation, and roughly $3.4 million to $6.7 million in
the third year. The OLS notes that actual increases in the mileage rate adopted by the IRS would
determine future State costs and reimbursement rates.
Section: Revenue, Finance, and Appropriations
Analyst: Patrick Walsh
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 52:14-17.1