Effective Jan. 1, the Internal Revenue Service raised what people call the "mileage reimbursement rate" to 50.5 cents a mile.

Officially, that's the standard mileage rate set by the IRS for calculating the deductible costs of operating a vehicle for business purposes.

It's also the rate used by some -- but certainly not all -- businesses to reimburse employees for driving their personal cars on company business.

Higher gasoline prices have sparked another round of worker dissatisfaction with whatever mileage reimbursement they're getting. For example, the nation's largest independent union of federal employees, the National Treasury Employees Union, last week called on the General Services Administration to raise its reimbursement rate for federal employees from 48.5 cents a mile.

"It is not fair and it is not right to expect federal employees to cover the cost of gas and maintenance from their own pockets," said Colleen Kelley, NTEU president.

But even if the government raises its reimbursement rate...and even if private-sector employers reimburse at the 50.5-cents-a-mile rate, the true costs of owning and operating a vehicle wouldn't be met.

Look at information in the 2007 "Your Driving Costs" report from AAA. Here are the average costs per mile for a vehicle driven 10,000 miles a year:

* A small sedan - 50.5 cents. (Category includes Chevrolet Cobalt, Ford Focus, Honda Civic, Nissan Sentra, and Toyota Corolla.)

* A mid-sized sedan - 61.8 cents. (Chevrolet Impala, Ford Fusion, Honda Accord, Nissan Altima, and Toyota Camry)

* A large sedan - 74.2 cents. (Buick Lucerne, Chrysler 300, Ford Five Hundred, Nissan Maxima, and Toyota Avalon)

* A minivan - 69.2 cents. (Chevrolet Uplander, Dodge Grand Caravan, Ford Freestar, Honda Odyssey, and Toyota Sienna)

* An SUV, 4WD utility vehicle - 81.5 cents. (Chevrolet TrailBlazer, Ford Explorer, Jeep Grand Cherokee, Nissan Pathfinder, and Toyota 4Runner)

Bigger gas guzzler than those? Don't even ask...mainly because I can't tell you. Bigger vehicles weren't included in that AAA report.

Of course, it's not solely a matter of keeping pace with higher prices at the pump. Factor in the costs of maintenance, tires, insurance, licensing, taxes, financing costs, depreciation, and the costs of turning the key in the ignition jump higher.

In past years, some business surveys have indicated that only about one-third of employers match the IRS rate in reimbursing employees for miles driven on the job.

Also in past surveys, most companies have indicated it doesn't fit in their budget or operating philosophies to match higher gasoline prices with higher mileage reimbursement rates. More likely these days, a focus on "going green" will cause employers to encourage use of carpooling and public transportation rather than encourage more private vehicle use.

What it comes down to is that, for many employees, any mileage reimbursement at all is a discretionary gift.


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