Revision: Dec. 10, 2009, midnight
HB 1240-FN – AS INTRODUCED
2010 SESSION
05/03
HOUSE BILL 1240-FN
AN ACT relative to the use of state-owned vehicles.
SPONSORS: Rep. McGuire, Merr 8; Rep. K. Gould, Rock 5; Rep. Irwin, Hills 3
COMMITTEE: Executive Departments and Administration
This bill requires state employees to pay mileage for personal use of a state-owned vehicle.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2511
05/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the use of state-owned vehicles.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Department of Administrative Services; Division of Personnel; Use of State-Owned Vehicles. Amend RSA 21-I by inserting after section 43-a the following new section:
21-I:43-b Use of State-Owned Vehicles. Any employee authorized to use a state-owned vehicle shall be charged mileage for the personal use of such vehicle. The rate per mile shall be the standard mileage rate for employee transportation expenses set by the Internal Revenue Service.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
10-2511
11/04/09
HB 1240-FN - FISCAL NOTE
AN ACT relative to the use of state-owned vehicles.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state revenue by $1,508,650 in FY 2011 and each year thereafter. There will be no fiscal impact on county and local revenue or on state, county, and local expenditures.
METHODOLOGY:
The Department of Administrative Services states the proposed bill will require employees to pay mileage to the state for personal use of state-owned vehicles. According to the Department, current practice only obligates state agencies to report personal use of these vehicles annually for IRS W2 reporting purposes. The Department states it relies on self-reporting from the agencies and individual employees and it uses the IRS commuting rule (each one-way commute between the home and office times $1.50) to calculate a value to be reported as income. The Department states this current methodology does not provide an estimate of miles traveled, however it does provide an estimate of the total number of vehicles being used for personal commuting (211 vehicles). As part of its effort to comply with Chapter 134, Laws of 2009, which mandates that all permanently assigned vehicles must be reported to the Governor and Executive Council, the Department preliminarily estimated the average number of miles (52 miles) traveled during each round-trip commute (i.e. an average number of personal miles traveled in a state-owned vehicle). The Department states should more permanently assigned vehicles be reported, this estimate could change. The Department also estimated that each vehicle would be used for commuting 5 days a week for 50 weeks, for a total annual estimate of round-trip commutes of 250 per vehicle. Using these assumptions, the Department calculated estimated annual personal miles traveled of 2,743,000. The Department assumed a reimbursement rate equal to the current IRS mileage rate of $0.55 per mile, which would generate estimated total revenue of $1,508,650 per fiscal year, to be deposited in the general fund due to the absence of provisions to the contrary. The Department also assumed an effective date on the proposed bill of July 1, 2010, so the additional revenue would begin in FY 2011 and continue each year thereafter, as the Department projected the number of vehicles with personal use, the driving patterns, and the reimbursement rate would remain relatively consistent.