Happy New Year! The new year brings to us new numbers to keep in mind for municipal decision-making in 2023:
Bid advertising requirements. In 2023, the threshold requiring advertisement of a municipal bid will increase to $22,500, up from $21,900 in 2022. The amount requiring collection of multiple telephone quotes for municipal work will increase to $12,200, up from $11,800 in 2022. Municipal action below the threshold of $12,200 will not require competitive solicitation. While these numbers are up, they have not increased at pace with the 8.2% increase in the consumer price index; Pennsylvania statute prevents the increase of these bidding requirements from exceeding three (3%) percent from the previous year.
Elected Auditor compensation. Although legislation to increase the compensation for elected public auditors passed in the Pennsylvania Senate last year, the bill did not clear the House, and therefore auditor wages will remain at ten dollars per hour in 2023. There will likely be renewed legislation in 2023 to increase auditor and other municipal official compensation.
Mileage Rate Increases. Every year the IRS issues its standard mileage rate for the business use of a vehicle, as influenced by fuel costs and inflation. In 2023, the standard mileage rate will be 65.5 cents per mile driven for business use. This represents an increase of 3 cents per mile from the second half of 2022, and 7 cents from this time in 2022. Municipal officials should take note, as municipalities may not establish a reimbursement rate for municipal vehicle use higher than the IRS rate.
Timothy J. Bupp
Estate Law Chair | Shareholder | Attorney
Timothy J. Bupp is a Shareholder with CGA Law Firm and chairs the Firm’s Estate Law Section. He provides clients with specialized advice in Estate Planning, Business and tax planning, Real Estate transactions and related matters. Tim assists his clients by utilizing the knowledge he gained from his advanced degrees in business administration, business taxation, and law, as well as his certifications in estate planning and employee benefits taxation. He counsels individuals and businesses with estate and wealth transfer planning, business succession planning, entity formation or acquisition, and tax planning.
Attorney Bupp has earned the designation of Certified Elder Law Attorney from the National Elder Law Foundation, the only ABA-approved Elder Law certification approved by the Pennsylvania Supreme Court.
Read Tim’s Bio Page in full HERE.
Paralegal, Municipal Law