Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
Rule 006.05.99-005 - Regulation 1999-5 -Standard Mileage Rates for Income Tax Purposes

The Commissioner of Revenue, pursuant to his authority under Ark. Code Ann. § 26-18-301 and Ark. Code Ann.§ 26-51-423, does hereby issue the following regulation. This regulation supersedes Revenue Division Regulation 1998-6.

The optional standard mileage rate, for use by employees or self-employed individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for business purposes, is thirty-two and one-half cents (32.50) per mile for expenses paid or incurred before April 1, 1999. The optional standard mileage rate for expenses incurred and paid on or after April 1, 1999, is thirty-one cents (310) per mile.

The optional mileage rate for use by individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for a charitable organization is fourteen cents (140) per mile.

The optional standard mileage rate allowed in computing the cost of operating a passenger automobile where transportation expenses are deductible as a medical or moving expense is ten cents (100) per mile.

The standard mileage rate for business use of a vehicle by a rural mail carrier as set by the Internal Revenue Service for tax year 1999 is hereby adopted. Reimbursement for a carrier's mileage shall be treated as a payment from a qualified plan. As such, mileage reimbursement will be excluded from a carrier's gross income. However, a carrier will not be allowed to deduct vehicle related expenses incurred while working as a rural mail carrier.

The mileage rates stated above shall be in effect beginning on and after January 1, 1999.

IN WITNESS WHEREOF, the undersigned have executed the foregoing regulations which shall be effective from and after the 10th day following their approval by the Arkansas Legislative Council.