HomeMy WebLinkAboutDocumentation_Regular_Tab 20_10/11/2005
FINAI~TCE DEPARTMENT
F#eceived
~.~vro.~vDU1-r
DATE: SEPTEMBER 26, 2005
TO: MICHAEL R COUZZO, VII{LAGE MANAGER
CC: GWEN CARLISLE, VILLAGE CLERK
FROM: JOANN FORSYTHE, FINANCE DIRECTOR
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RE: MILEAGE ALLOWANCE IN ACCORDANCE WITH IRS RATES
At the June 2005 Village Council meeting the Village Council approved increasing the mileage
reimbursement to 40.5 cents, which was in accordance with the IRS rates at that time. However, it was not
established at that time if the intent was to keep the Village of Tequesta's mileage reimbursement in accordance
with IRS rates or whether any future increases was to be brought to the Village Council for approval. Should
• the intent be to keep the rates followed by the Village in accordance with the IRS rates, please find attached a
resolution that would need to be approved by Village Council.
It should be noted that in response to the recent gas price increases, the Internal Revenue Service has
announced that the optional standard mileage rate has increased 8¢ to 48.5¢ a mile for all business miles driven
between Sept. 1 and Dec. 31, 2005, up from 40.5¢ for the first eight months of 2005.
•
9/26/054:23 PM
RESOLUTION NO. 12-05/06
•
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE
OF TEQUESTA, PALM BEACH COUNTY, FLORIDA,
ESTABLISHING A MILEAGE REIUMBURSEi~NT RATE THAT IS
IN ACCORDANCE WITH THE MILEAGE REIUMBURSENJP:NT RATE
AS ESTABLISEHD BY THE INTERNAL REVENUE SERVICE
(IRS) .
WHEREAS, The Village of Tequesta has heretofore
reimbursed transportation expenses of Village
officers and employees while using their private
vehicles according to methods and policies set
forth in Village policies and,
WHEREAS, The Village of Tequesta has heretofore
reimbursed transportation expenses of Village
officers and employees at a rate of 40.5 cents per
mile and,
WHEREAS, The Internal Revenue Service has announced
that the optional standard mileage rate has
increased 8~ to 48.5 a mile for all business miles
driven between Sept. 1 and Dec. 31, 2005 and,
• WHEREAS, The Village of Tequesta desires to
establish a mileage reimbursement rate for Village
officers and employees that is in accordance with
rates established by the IRS.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL
OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA,
AS FOLLOWS:
SECTION 1: A Resolution setting mileage reimbursement
rates for the Village of Tequesta according to mileage
reimbursement rates as established by the Internal
Revenue Services is hereby established and the Village
Manager is authorized to proceed on behalf of the
Village in this matter.
THE FOREGOING RESOLUTION WAS OFFERED by Councilmember
who moved its adoption. The.
motion was seconded by Councilmember
and upon being put to a vote, the
vote was as follows:
.,
•
FOR ADOPTION
AGAINST ADOPTION
The Mayor thereupon declared the Resolution duly passed
and adopted this day of A.B, 2005.
MAYOR OF TEQUESTA
Jim Humpage
ATTEST:
Gwen Carlisle
Village Clerk
•
IRS Increases Mileage Rate Until Dec. 31, 2005
Page 1 of 1
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IRS Increases Mileage Rate Until Dec. 31, 2005
IR-2005-99, Sept. 9, 2005
WASHINGTON -The Internal Revenue Service and Treasury Department announced today
an increase to the optional standard mileage rates for the final four months of 2005.
The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and
Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight
months of 2005, as set forth in Rev. Proc. 2004-64.
"This is about fairness for taxpayers," said IRS Commissioner Mark W. Everson. "People are
entitled to deduct the real cost of operating a vehicle. We've responded to the recent gas
price increases by making this special adjustment so taxpayers get the tax benefit they
deserve.'
In recognition of recent gasoline price increases, the IRS made this special adjustment for the
final months of 2005. The IRS normally updates the mileage rates once a year in the fall for
the next calendar year.
"With many predicting a decline in gas prices over coming months, we will hold off on setting
the 2006 rate until closer to January," Everson said. Next year's rate could be lower than 48.5
• cents.
While gasoline is a major factor in the mileage figure, other items enter into the calculation of
mileage rates, such as the price of new vehicles and insurance.
The optional business standard mileage rate is used to compute the deductible costs of
operating an automobile for business use in lieu of the extra burden of tracking actual costs.
This rate is also used as a benchmark by the federal government and many businesses to
reimburse their employees for mileage.
The new four-month rate for computing deductible medical or moving expenses will be 22
cents a mile, up from 15 cents for the first eight months of 2005. The rate for providing
services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a
mile.
The annual Revenue Procedure includes limitations on who is not eligible to use the standard
mileage rate.
l_i n ks:
• Announcement 2005-71 -Announcing an increase to the optional standard mileage
rates for the final four months of 2005. (PDF 9K6, 2 pages)
Subscribe to IRS Newswire
•
http://www.irs.gov/newsroom/article/0„id=147423,00.htm1 9/26/2005