Executive Director


P.O. Box 27255

Raleigh, NC 27611-7255

July 12, 2011

Mr. Phillip H. Brady, Treasurer

Harold J. Brubaker Campaign Committee

312 West Salisbury Street

Asheboro, NC 27203-4583

RE: Requested Advisory Opinion N.C.G.S. § 163-16B(a)(l)and (2)

Dear Mr. Brady:

Pursuant to N.C.G.S. § 163-278.23, your letter of July 5, 2011, requested an advisory opinion regarding the deductible difference in mileage expenses.

Historically, the reimbursement rate differential between the General Assembly allowance and the IRS deductible has been allowed to be expensed from campaign funds. This allowance is governed by N.C.G.S. 163-278.16B(a)(l) and (2), which reads:

(a) A candidate or candidate campaign committee may use contributions only for the following purposes:

(1) Expenditures resulting from the campaign for public office by the candidate or candidate's campaign committee.

(2) Expenditures resulting from holding public office.

Incurred mileage resulting from activities related to campaigning for and subsequently holding public office is a covered expenditure under this Statute. Therefore, Rep. Brubaker may receive reimbursement for the allowance differential for mileage accrued while attending to the duties of holding public office and the participating in the activities necessary while campaigning for election to office.

You may wish to consult IRS regulatory code for potential tax implications of this differential mileage reimbursement.

This opinion is based upon the information provided in your letter of July 7, 2011. If the information should change, you should evaluate whether this opinion is still applicable and binding. Finally, this opinion will be filed with the Codifier of Rules to be published unedited in the North Carolina Register and the North Carolina Administrative Code.

Should I be of further assistance, please let me know.


Gary O. Bartlett

Executive Director

cc: Julian Mann, III, Codifier of Rules

Susan K. Nichols, Special Deputy Attorney General

Donald M. Wright, NCSBE General Counsel

Kim W. Strach, Deputy Director, Campaign Finance


Certified Public Accountant

312 West Salisbury Street

Asheboro, North Carolina 27203-4582

July 5, 2011

Telephone: 336-625-1155

Fax: 336-625-6671

email: phbcpa@asheboro.com

Mr. Gary Bartlett

Executive Secretary-Director

State Board of Elections

PO Box 27255

Raleigh, NC 27611-7255

Dear Mr. Bartlett:

The purpose of this letter is to request an advisory opinion pursuant to G.S. 163278.23 regarding the deductible difference for mileage. The General Assembly has reimbursed members at a rate below the standard deductible as set by the Internal Revenue Service.

Therefore, the question arises as to the legitimate reimbursement for a member to receive the difference between the rate paid and the rate set by the Internal Revenue Service as a legitimate campaign expense for performing the duties of the office.

I look forward to your reply so that we may be assured we are handling our accounting as is required by law.



Phillip H. Brady, Treasurer

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