Effective Jan. 1,Michigan State University's mileage allowance decreased from 55 cents per mile to 50 cents per mile.
The rate decrease impacts all automobile travel occurring on or after Jan. 1.
This adjustment is consistent with the university's practice of making adjustments to its mileage allowance based upon announced adjustments in the Internal Revenue Service's standard business mileage transportation allowance. This allowance is intended to cover the prorated cost of the vehicle, fuel, insurance and vehicle maintenance.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The decrease reflects generally lower transportation costs compared to a year ago.
While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
Reference to the mileage allowance may be found in the Manual of Business Procedures, Volume I, Section 70. The manual can be found on the Controller's Office home page at www.ctlr.msu.edu.
The 2010 mileage rate has been published on the MSU Travel Office Web site at http://ctlr.msu.edu/travel.