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Increase Lewis County's 2022 mileage rate effective July 1, 2022. BEFORE THE BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON IN THE MATTER OF: RESOLUTION NO. 22-185 INCREASE LEWIS COUNTY'S 2022 MILEAGE RATE EFFECTIVE JULY 1, 2022 WHEREAS, the Board of County Commissioners (BOCC) set the 2022 mileage at 58.5 cents per mile for privately-owned vehicles used for transportation in the conduct of county business via Resolution 21-465 on December 28, 2021; and WHEREAS, the Internal Revenue Service (IRS) on June 9, 2022, released Announcement 2022-13 (attached hereto as Exhibit A) and Notice 2022-03 (attached hereto as Exhibit B), increasing the standard mileage rate by 4 cents per mile -- to 62.5 cents per mile -- effective July 1, 2022; and WHEREAS, Lewis County typically follows the IRS schedule regarding mileage rates; and WHEREAS, it appears to be reasonable to approve the latest IRS mileage rate of 62.5 cents per mile. NOW THEREFORE BE IT RESOLVED that effective July 1, 2022, the mileage rate for privately-owned vehicles used for transportation in the conduct of county business shall be set at 62.5 cents per mile; and NOW THEREFORE BE IT FURTHER RESOLVED that effective July 1, 2022, the mileage rate for county rentals used for transportation in the conduct of county business also shall be set at 62.5 cents per mile. DONE IN OPEN SESSION this 21st day of June, 2022. Page 1 of 2 Res. 22-185 Exhibit A Optional Standard Mileage Rates Announcement 2022-13 This announcement informs taxpayers that the Internal Revenue Service is modifying Notice 2022-3, 2022-2 I.R.B. 308, by revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. This modification results from recent increases in the price of fuel. The revised standard mileage rates are: (1) Business 62.5 cents per mile (2) Medical and moving 22 cents per mile The mileage rate that applies to the deduction for charitable contributions is fixed under § 170(i) of the Internal Revenue Code (Code) at 14 cents per mile. The revised standard mileage rates set forth in this announcement apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2022, and to mileage allowances that are paid mileage rate provided in this announcement. Further, § 11049 of the TCJA suspends the deduction for moving expenses for taxable years beginning after December 31, 2017, and before January 1, 2026. However, the suspension does not apply to members of the Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station. Thus, except for taxpayers to whom § 217(g) of the Code applies, the revised standard mileage rate provided in this announcement is not applicable for the use of an automobile as part of a move occurring during the suspension. EFFECT ON OTHER DOCUMENTS Notice 2022-3 is modified. DRAFTING INFORMATION The principal author of this announcement is Christian Lagorio of the Office of Chief Counsel (Income Tax and Accounting). For further information regarding this announcement contact Mr. Lagorio at (202) 317-7005 (not a toll-free number). Exhibit B 2022 Standard Mileage Rates Notice 2022-03 SECTION 1. PURPOSE This notice provides the optional 2022 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This notice also provides the amount taxpayers must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan. Additionally, this notice provides the maximum fair market value (FMV) of employer- provided automobiles first made available to employees for personal use in calendar year 2022 for which employers may use the fleet-average valuation rule in § 1.61- 21(d)(5)(v) of the Income Tax Regulations or the vehicle cents-per-mile valuation rule in § 1.61-21(e). SECTION 2. BACKGROUND Rev. Proc. 2019-46, 2019-49 I.R.B. 1301, provides rules for computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes, and for substantiating, under § 274(d) of the Internal Revenue Code and § 1.274-5, the amount of ordinary and necessary business expenses of local - 3 - Rev. Proc. 2019-46. However, § 11045 of the Tax Cuts and Jobs Act, Public Law 115- 97, 131. Stat. 2054 (December 22, 2017) (the "TCJA") suspends all miscellaneous itemized deductions that are subject to the two-percent of adjusted gross income floor under § 67, including unreimbursed employee travel expenses, for taxable years beginning after December 31, 2017, and before January 1, 2026. Thus, the business standard mileage rate provided in this notice cannot be used to claim an itemized deduction for unreimbursed employee travel expenses during the suspension. Notwithstanding the foregoing suspension of miscellaneous itemized deductions, deductions for expenses that are deductible in determining adjusted gross income are not suspended. For example, members of a reserve component of the Armed Forces of the United States (Armed Forces), state or local government officials paid on a fee basis, and certain performing artists are entitled to deduct unreimbursed employee travel expenses as an adjustment to total income on line 11 of Schedule 1 of Form 1040 (2021), not as an itemized deduction on Schedule A of Form 1040 (2021), and therefore may continue to use the business standard mileage rate. The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170. See section 5 of Rev. Proc. 2019-46. The standard mileage rate is 18 cents per mile for use of an automobile: (1) for medical care described in § 213; or (2) as part of a move for which the expenses are deductible under § 217(g). See section 5 of Rev. Proc. 2019-46. Section 11049 of the TCJA suspends the deduction for moving expenses for taxable years beginning after December 31, 2017, and before January 1, 2026. However, the suspension does not - 5 - on or after January 1, 2022, and (b) for transportation expenses the charitable volunteer or such member of the Armed Forces pays or incurs on or after January 1, 2022; and (3) for purposes of the maximum FMV of employer-provided automobiles for which employers may use the fleet-average valuation rule in §1.61-21(d)(5)(v) or the vehicle cents-per-mile rule in §1.61-21(e), automobiles first made available to employees for personal use on or after January 1, 2022. SECTION 8. EFFECT ON OTHER DOCUMENTS Notice 2021-02 is superseded. DRAFTING INFORMATION The principal author of this notice is Christian Lagorio of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information on this notice regarding the use of an employee-provided automobile, contact Mr. Lagorio at (202) 317-7005 (not a toll-free number). For further information on this notice regarding the use of an employer-provided automobile, contact Stephanie Caden of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes), at (202) 317-4774 (not a toll-free number). BOCC AGENDA ITEM SUMMARY Resolution: BOCC Meeting Date: June 21, 2022 Suggested Wording for Agenda Item: Agenda Type: Deliberation Increase Lewis County's 2022 mileage rate effective July 1, 2022 Contact: Rieva Lester Phone: 360-740-1419 Department: BOCC - Board of County Commissioners Description: Revising Lewis County's 2022 mileage rate effective July 1, 2022 Approvals: Publication Requirements: Publications: User Status PA's Office Pending Additional Copies: Cover Letter To: Becky Butler, Grace Jimenez, Tim Murphy