Article 19, section 2 of MGEC’s contract with the state ties eligible mileage reimbursement rates to the federal IRS rate. As we are all keenly aware, transportation costs have increased, and the IRS has reflected some of that increase by raising the standard mileage rate by 3¢ to 65¢ per mile. When a State-owned vehicle is offered and declined by the employee, the Agency or designee shall authorize that mileage be paid at the rate of seven (7) cents less than the IRS mileage rate. The higher rate may be a paid if the use of the motor pool vehicle would have resulted in a greater cost to the state than the reimbursement for the personal car rate.
Make sure that as of January 1st you’re being reimbursed at the correct rate! For more information, go to this IRS link: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2023-business-use-increases-3-cents-per-mile