West Virginia Department of Administration officials today announced that the 2011 state mileage reimbursement rate will increase from 40.5 cents per mile to 42.5 cents per mile, effective January 15, 2011. The two-cent increase correlates with the projected increase in fuel costs in West Virginia. Analysis by the Federal Energy Information Agency shows an expected increase of five percent in both unleaded and diesel fuel costs.
A bi-annual review of the state’s mileage reimbursement rate for privately-owned vehicles is conducted in both January and July of each year by the cabinet secretary of the Department of Administration. After a recent review of the state’s reimbursement rate for the use of employees’ privately-owned vehicles, 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 in July 2011.