December 28, 2007-
TPSA NEWSLETTER MISSTATES NEW FEDERAL MILEAGE FEE!
On December 18, 2007, the Texas Process Servers Association published its
most recent newsletter "The Server." In an article written by the association's
past president, Lee Russell misstates the new rate for calculating mileage fees to
be tendered with Federal witness subpoenas.
Mr. Russell writes, "A new year is upon us and of course the rules are going to
change on January 1, 2008. The Texas Legislature did not do anything drastic to
effect our business, but I did find a change in the allowances for mileage for the
Federal Courts. The new allowance for mileage beginning January 1 will be
$.051/2 per mile [INCORRECT] round trip. So get your calculators ready to write
checks for witnesses a little larger than in the past."
The new mileage fee is NOT a nickel and a half. It is:
$.505 cents (fifty and one half cents) per mile round trip for one day's appearance.
So, when you do "get your calculators ready" be sure to put the decimal point in
the right place! The mileage fee should be calculated from the residence of the
witness to the place of appearance.
It also helps to know that this same rate is used to calculate the mileage
reimbursement we pay ourselves for the use of our personal vehicles to serve
process (and other business related travel like going to the bank, courthouse,
etc.) This is dependant upon the following factors (among others):
-Your use of a company vehicle vs. your personal vehicle
-How often you use your personal vehicle for business
-The method you use to calculate your taxes
-How your company is set up, i.e., sole proprietorship, corporation, etc.
Even with gas prices as high as they are, mileage reimbursement will usually
yield more than the deduction of expenses. Be sure to consult with a C.P.A. or
other tax professional.
Lastly, this author can't help but take notice of Mr. Russell's comment about how
the Legislature "did not do anything drastic to effect [affect] our business." What
Mr. Russell is referring to is Senate Bill 1305, a bill created and promoted by TPSA
leaders; a bill supported and paid for by membership dues and profits from TPSA
training classes; and a bill lobbied for by the TPSA's lobbyist. This bill failed
because it was killed by industry watchdogs and key legislators; the true
protectors of the industry.
In 2006, when Mr. Russell was president of the TPSA, he promised members that
no fees would be imposed on the industry. However, just a few short months
later, TPSA leaders caused SB 1305 to be filed which would have cost the
industry nearly a half million dollars. This failed bill cost the association many
thousands of wasted dollars. The estimated loss to the association... $36,000.00!
This demonstrates yet another example in a long line of examples of the TPSA's
poor leadership. Deception and misinformation seem to be commonplace. The
entire TPSA board should be summarily dismissed and replaced with honest,
unbiased process servers who have no ulterior motives or hidden agendas.
Furthermore, the association's current president (who happens to also be the
chairman of the Process Server Review Board) has officially announced plans to
again seek funding from the Legislature at the next legislative session. Process
servers will again have to fight to protect their interests. It's no wonder Mr.
Russell has been appointed to the PSRB. In light of all that has happened, he is
the perfect choice. So much for promises.
Story by:
Tod E. Pendergrass
Director, Texas Process Watch