Rule 006.05.09-002 - Rule 2009-1: Standard Mileage Rates for Income Tax Purposes

The Commissioner of Revenue, pursuant to his authority underArk. Code Ann. §§26-18-301 and26-51-423(a)(3), does hereby issue the following regulation:

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 fifty-five cents (55¢) per mile for expenses paid or incurred during the 2009 calendar year.

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 (14¢) 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 twenty-four cents (24¢) per mile for expenses paid or incurred during the 2009 calendar year.

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 2009 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 for tax years beginning on and after January 1, 2009.