[Travel-Link] Mileage reimbursement rate

[HAY Tim * DAS SPO]

FROM THE DESK OF JOHN MCINTYRE, STATE CONTROLLERS DIVISION

 

Travel Coordinators: 

The private vehicle reimbursement rate for the State will remain 48.5
cents per mile until further notice. 

The IRS recently announced that the standard mileage rate will decrease
from 48.5 cents per mile to 44.5 cents, effective January 1, 2006. This
IRS rate is set for a particular purpose: the deductibility of operating
a vehicle for business use. 

State travel policy mirrors federal rates which are set by the General
Services Administration (GSA) for employees of the Federal government.
The State is not changing the private vehicle reimbursement rate until
we know what the GSA intends to do. At this point, the GSA hasn't
announced a rate for 2006. When the GSA announces a rate for 2006, we
will begin the process of changing State travel policy which includes
giving notice to bargaining units.  As always, the State's intent is to
maintain a single travel policy for all employees. 

Will the GSA change the rate to 44.5 cents per mile? That's unclear.
We've contacted GSA officials and, so far, they have only indicated that
the rate will be at or less than the IRS standard rate.  

Will reimbursements made in 2006 at 48.5 cents per mile be partially
taxable? Yes. Any reimbursement made in 2006 that exceeds 44.5 cents per
mile is taxable. The GSA recognizes this too which is why we believe
their announcement for 2006 should be coming soon. There is a
recommended payroll procedure for recording taxable fringe benefits that
would be recommended in those situations. The procedure is on the DAS
Intranet. The link to this part of the DAS Intranet is
https://intranet.egov.oregon.gov/sites/DAS/SCD/OSPS/publications.jsp
<https://intranet.egov.oregon.gov/sites/DAS/SCD/OSPS/publications.jsp> ,
look for Appendix D.


We will keep you informed as new information becomes available.
Please call if you have questions. 

John McIntyre 
SARS Senior Accounting Analyst 
phone: 503-373-7277 x283 
fax:     503-378-3518
john.mcintyre at state.or.us 

 

 

Tim A. Hay, CPPB, OPBC 
State Procurement Analyst 
DAS State Procurement Office 
1225 Ferry St SE U140 
Salem, OR 97301-4285 

Ph.  503-378-4650 
Fax. 503-373-1626 
tim.hay at state.or.us 

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