SB190 By Senators Orr and Pittman RFD Finance and Taxation General Fund Rd 1 09-FEB-16

SYNOPSIS: Under existing law, state officials and employees traveling on official business in privately owned vehicles are reimbursed for mileage at the rate allowed by the Internal Revenue Code for income tax deduction purposes.

This bill would change the mileage reimbursement to a formula using the American Automobile Association Daily Fuel Gauge Report.

A BILL TO BE ENTITLED AN ACT

Relating to travel expenses for official state business; to amend Section 36-7-22 of the Code of Alabama 1975, by setting the mileage rate for state officials and employees traveling in privately owned vehicles according to a formula using the American Automobile Association Daily Fuel Gauge Report.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 36-7-22 of the Code of Alabama 1975, is amended to read as follows:

§36-7-22.

Persons traveling on official business for the state or any of its Legislative, Executive, and Judicial Branches, departments, institutions, boards, bureaus, commissions, councils, committees, or other like agencies in privately owned vehicles shall receive an amount equal to the mileage rate allowed by the Internal Revenue Code for income tax deductions per mile adjusted based on the American Automobile Association (AAA) Daily Fuel Gauge Report for Alabama for regular grade gasoline in lieu of actual expenses for transportation. The rate shall be adjusted on January 1, April 1, July 1, and October 1 each calendar year based on the average retail price of regular grade gasoline for the week beginning on the second Sunday of the prior month as follows:

a. If the fuel cost is between one (1) cent and one dollar forty-nine and nine-tenths cents ($1.499), the employee shall be reimbursed thirty-six (36) cents per mile;

b. If the fuel cost is between one dollar fifty cents ($1.50) and one dollar sixty-nine and nine-tenths cents ($1.699), the employee shall be reimbursed thirty-seven (37) cents per mile;

c. If the fuel cost is between one dollar seventy cents ($1.70) and one dollar eighty-nine and nine-tenths cents ($1.899), the employee shall be reimbursed thirty-eight (38) cents per mile;

d. If the fuel cost is between one dollar ninety cents ($1.90) and two dollars nine and nine-tenths cents ($2.099), the employee shall be reimbursed thirty-nine (39) cents per mile;

e. If the fuel cost is between two dollars ten cents ($2.10) and two dollars twenty-nine and nine-tenths cents ($2.299), the employee shall be reimbursed forty (40) cents per mile; or

f. If the fuel cost is greater than two dollars twenty-nine and nine-tenths cents ($2.299), the amount the employee is reimbursed shall increase one (1) cent for every twenty (20) cent increase in the rate.

Reimbursement shall be made no later than 30 calendar days from the date the request for reimbursement is initially received by the appropriate authority. For purposes of this section, travel, excluding members of the Legislature, means a departure from the permanent place of employment.