GSA raises mileage reimbursement rate by 8 cents per mile

The General Services Administration followed the Internal Revenue Service's lead Tuesday by raising the mileage reimbursement rate from 40.5 cents per mile to 48.5 cents per mile for federal employees using their personal vehicles on government business.

Effective retroactively for all mileage reimbursement claims starting Sept. 1, 2005, the rate hike marks one of the largest single increases ever.

GSA was not required to raise the reimbursement rate. Federal law permits the agency to set the rate no higher than the rate established annually by the IRS, which made a special adjustment in its mileage reimbursement rate for tax deduction purposes late on Friday due to rising gas prices nationwide.

The motorcycle and airplane mileage reimbursement rates set by GSA remained at 30.5 cents per mile and $1.07 per mile, respectively.

The national gas price average dipped below $3 Tuesday, but prices in Washington, D.C., remained the highest in the country at $3.35, according to the AAA Mid-Atlantic Daily Fuel Gauge Report.

"In the Washington metro region, we are currently paying $1.30 more for a gallon of gas than we were paying out at this time last year," said John B. Townsend II, AAA Mid-Atlantic's government and public affairs manager. "That is a staggering figure."

Sen. Charles Schumer, D-N.Y., is preparing legislation that would raise the mileage reimbursement rate for federal employees driving personal vehicles to 60 cents per mile through Dec. 31, 2006.

Source: General Services Administration

Source: AAA Mid-Atlantic's Daily Fuel Gauge Report