Mileage reimbursement rate could rise by 3 cents in 2005

[The Straight Story]

Mileage reimbursement rate could rise by 3 cents in 2005

By Daniel Pulliam
[e-mail]

Federal workers might see a 3 cents increase in the mileage reimbursement rate if the General Services Administration follows the Internal Revenue Service's recently announced rate change, effective Jan. 1, 2005.

The IRS rate change from 37.5 cents to 40.5 cents a mile for cars, vans and pickup trucks is one of the largest one-year increases ever. According to the IRS, the higher cost for vehicles and fuel during the year ending in September is the primary reasons for the rate jump.

The most recent GSA increase in the reimbursement rate was a 1.5 cent increase on Jan. 1, 2004, that mirrored a previously announced IRS increase.

http://www.govexec.com/daileyfed/1104/112904p1.htm