The Senate Revenue & Tax Committee voted to approve Senate Bill 412, which would permit the Department of Finance and Administration (DFA) to set the state mileage rate for tax purposes by proclamation instead of by going through the formal rulemaking process.

Senator Justin Boyd introduced the bill and turned the floor to Paul Gehring of DFA for technical explanation. "Currently, if the DFA would like to amend the mileage rate for income tax purposes, We are required, for existing statute to promulgate a rule. Under senate bill 412, DFA would be able to, issue a mileage rate by proclamation as opposed to the rule promulgation process," Gehring said.

Gehring said the change would let DFA move quickly to match the Internal Revenue Service rate and that the bill includes a 30-day timeline to align rates where practicable and to do so in a fiscally responsible way as the secretary determines. The committee record shows DFA answered members' questions and that staff reported no state fiscal impact for the committee's purposes.

A committee motion to pass was made and seconded; the committee voice vote recorded the ayes and no opposition, and the chair announced the motion carried.