Mileage Rate Changes Effective January 1, 2006

On December 2, 2005 the IRS announced a decrease in the federal mileage reimbursement rate effective January 1, 2006 to 44.5 cents per mile, down from the previous reimbursement rate of 48.5 cents per mile. You may view this announcement on the IRS web site at

http://www.irs.gov/newsroom/article/0,,id=151226,00.html

On December 15, 2005 the State of Texas announced plans to decrease the state mileage reimbursement rate to 44.5 cents per mile, matching the federal rate, effective for travel on or after January 1, 2006. You may view this announcement on the State of Texas web site at

https://fmx.cpa.state.tx.us/fm/travel/milerate/

The University of Texas at Austin will match the state decrease, and mileage reimbursement rates will be decreased to 44.5 cents per mile, down from 48.5 cents per mile, for all business travel in personally owned automobiles occurring on or after January 1, 2006.

These new rates for travel beginning January 1, 2006 will be reflected in all VP5 travel payment vouchers created on or after January 2, 2006. Mileage reimbursements for travel dates prior to January 1 will be made at the rates in effect prior to January 1. In order to fully reimburse mileage for travel occurring between October 1 and December 31, 2005 the VP5 document creator must manually add a second mileage reimbursement transaction for each date during the higher reimbursement period, so that the extra 4 cents per mile can be reimbursed for travel dates during October 1 through December 31, 2005.

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.