Mileage Rate Changes Effective October 1, 2005

On September 9, 2005 the IRS announced an increase in the federal mileage reimbursement rate effective for the last four months of 2005 to 48.5 cents per mile, up from the previous reimbursement rate of 40.5 cents per mile. You may view this announcement on the IRS web site at http://www.irs.gov/newsroom/article/0,,id=147423,00.html.

On September 22, 2005 the State of Texas announced plans to increase the state mileage reimbursement rate to 48.5 cents per mile, matching the federal rate, effective for travel on or after October 1, 2005 through December 31, 2005. You may view this announcement on the state of Texas web site at http://fmx.cpa.state.tx.us/fm/travel/milerate/index.php.

The University of Texas at Austin will match the state increase, and mileage reimbursement rates will be increased to 48.5 cents per mile, up from 40.5 cents per mile, for all personal automobile travel occurring on or after October 1, 2005 through December 31, 2005.

These new rates for travel between October 1 and December 31, 2005 will be reflected in all VP5 travel payment vouchers created on or after October 1, 2005. Mileage reimbursements for travel dates prior to October 1 will be made at the rates in effect prior to October 1. These lower rates will require the document creator to manually reduce the mileage reimbursement calculated under the new rates. If the mileage is for travel dates prior to October 1 the document creator must manually replace the calculated amount with the lower amount.

Mileage reimbursements for travel prior to October 1 will be audited by the Office of Accounting and returned for corrections if the requested reimbursement amounts exceed the rates in effect at the time the travel occurred.

Please direct all questions to oa.mboling@austin.utexas.edu or oa.croberts@austin.utexas.edu or you can call Marcia Boling at 471-7821 or Cynthia Roberts at 475-7144.