Redondo Beach : Doubts on Mileage Reports

Assistant City Atty. Michelle Rutan told the mayor and City Council this week that their claims for mileage reimbursement may violate IRS requirements.

The IRS requires employees who are reimbursed to keep point-to-point documentation of trips, which Redondo Beach mayors and council members traditionally have not done. Rutan said that in her opinion elected officials would be considered “employees,” but the requirements do not specifically state whether elected officials are considered as such.

If employees are reimbursed for more mileage than actually driven, it would be considered taxable income, she said. If a question arose about the number of miles driven, the documentation would be needed as proof, she said.

The council is considering making changes on expense voucher reports, although the city manager and the city attorney said council members’ current practice of not reporting point-to-point travel does not violate city laws.