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The General Services Administration announced Monday that the mileage reimbursement rate for federal employees who travel in their own cars on government business will increase to 37.5 cents per mile in 2004.

The new rate goes into effect on Jan. 1, according to a Dec. 15 Federal Register notice. Federal employee mileage reimbursement rates are based on data collected by GSA, and generally keep pace with the rate set annually by the Internal Revenue Service. In fact, by law (41 CFR Part 301-10), the governmentwide rate cannot exceed the rate set by the IRS.

The 2003 rate is 36 cents per mile.

Federal travel regulations allow employees to use their personal vehicles for official travel if such travel is authorized by their agency. If an agency authorizes travel by other means, such as by air, and an employee drives his or her own car instead, the reimbursement rate is limited to the cost of the authorized means of travel.

Employees who use personal motorcycles and airplanes will also see the mileage reimbursement rate increase in 2004. The reimbursement rate for motorcycles in 2004 is 28.5 cents per mile, up from 27.5 cents in 2003. Personal airplane travel will be reimbursed at 99.5 cents per mile in 2004, up from 95.5 cents per mile in 2003.

The mileage reimbursement rate does not apply to employee relocations. Relocations are designated as transportation expenses, not as an allowance for the cost and operation of a vehicle, according to GSA.

Source: General Services Administration

COMMENTS

• The mileage rates in the FTR for relocation travel were established before the relocation expense reimbursements to a Government employee became taxable income and subject to the rules of IRS. Look for the 15, 17, and 19 cent rates to all drop to 14 cents per mile that is authorized by IRS. These rates were adequate when they were established approximately 35 years ago. The calculation of the taxable portion of the mileage rate is an administrative nightmare for the agencies. Seems the IRS rules are always established based on the cost of operating an automobile in the first half of the year and do not reflect the true cost - look at the cost of gasoline in October 2004 and it is supposed to go higher. Les Oden Posted October 25, 2004 4:57 PM
• I have been a civil servant since 1985 and a military spouse since 1984. Yes, I have seen my share of moves across the country and back, and though most of these were military, two of them have been for my civil service position. What I can't figure out is this: Mileage reimbursement goes up with the cost of gas, but reimbursement for a Permanent Change of Station (PCS) move is still only 15 cents per mile. Do they think my vehicle gets better mileage and less wear and tear if it goes from Memphis to Raleigh one way than if it goes TDY to Washington and back? The PCS rate has not changed for years. It is time someone looked at that. Ronnette Coffman Posted January 7, 2004 8:12 AM
• I disagree with the person who feels .25 cents is sufficient. There are various reasons that folks drive their own vehicles. For instance, my husband has driven his truck TDY numerous times and had to carry required equipment for the job. Most cars could not handle carrying this type of equipment. Plus, there is wear and tear on your POV and tires and maintenance aren't cheap. The 37.5 cents a mile doesn't even come close to covering the extra expenses and depreciation due to the extra mileage. Also, how about the days you are just traveling back and forth to the job site? The government pays perhaps only 10 or 20 miles a day versus the entire day of a rented car. Me personally, I'd much rather rent a car and save the mileage and extra expenses on my POV, but there are legitimate reasons for driving one's own vehicle. Believe me, you are not making any profit by driving your own. From experience, it costs more than what you are reimbursed for. GovExec.com reader Posted December 16, 2003 10:40 AM