The U.S. Internal Revenue Service on Jan. 1, 2009, will lower its standard mileage rate to 55 cents per mile—3.5 cents less than the current rate, which the government raised mid-year amid escalating fuel prices. Many businesses rely on the rate to calculate deductible costs for employees who use personal vehicle for business. IRS, in a special mid-year adjustment beginning July 1, raised the rate by 8 cents to 58.5 cents per mile
(BTNonline, June 24). AAA this month reported national average prices for regular unleaded gas at significantly lower rates than the $4.07 national average recorded on the day IRS revised the rate earlier this year. The Internal Revenue Service acknowledged that gasoline costs are "a significant factor" in determining the rate, but other costs, including depreciation, are taken into account. The Internal Revenue Service said the standard rate for 2009 factors in a steady decline in oil prices since summer, but also reflect "generally higher transportation costs compared to a year ago." While not a requirement, most businesses use the IRS rate as a guideline in reimbursing their drivers. In Business Travel News'
2006 Expense Manager's Survey, 82.5 percent of 221 responding travel and expense managers said they used the rate to reimburse travelers.
Airlines Bank On Courts To Overturn DOT New York Slot Auction PlanThe Air Transport Association said it expects a court of appeals in Washington, D.C., to rule on whether the U.S. Department of Transportation can proceed with controversial slot auctions at the three major New York City-area airports before the first auction date on Jan. 12, 2009. In court documents filed late last month, ATA said neither the Federal Aviation Administration nor the public would gain benefits from the auctions, while airlines "will suffer irreparable harm if the Federal Aviation Administration is permitted to auction slots." DOT has held to its plan to proceed with the auctions as set in a final rule released in October, despite the Air Transport Association-led lawsuit and a ruling by the U.S. Government Accountability Office, Congress' investigative arm, that DOT does not have the legal authority to auction slots
(BTNonline, Oct. 6). DOT plans to gradually auction "up to 10 percent of the landing and takeoff slots these airlines currently operate free of charge today" at John F. Kennedy, LaGuardia and Newark airports. Unless the appeals court intervenes, the auctions, which DOT said would enhance competition and reduce congestion, are slated to begin next year and continue through 2014.