West Virginia Department of Administration officials announced that the 2011 state mileage reimbursement rate will increase from 42.5 cents per mile to 47.0 cents per mile, effective July 20, 2011. The 4.5 percent increase correlates with the projected increase in fuel costs in West Virginia since the January 2011 mileage reimbursement rate adjustment. Short-term analysis by the Federal Energy Information Agency for the remainder of 2011 shows per gallon fuel prices remaining above $3.50 for regular unleaded and $3.80 for diesel fuel.
A bi-annual review of the state’s mileage reimbursement rate for privately-owned vehicles is conducted in January and July of each year by the cabinet secretary of the Department of Administration. After the most recent review, the state’s reimbursement rate for the use of employees’ privately-owned vehicles determined an increase was deemed necessary to cover the total cost of ownership for usage of the privately-owned vehicle for state business use.
The state of West Virginia is not statutorily required to follow the federal mileage reimbursement rate set by the Internal Revenue Service. This state rate will be in effect until further notice or after the next review to occur in January 2012.