006.05.98 Ark. Code R. 026
The Commissioner of Revenue, pursuant to his authority under Ark. Code Ann. § 26-18-301 and Ark. Code Ann. § 26-51-423, does hereby issue the following regulation. This regulation supersedes Revenue Division Regulation 1997-3.
The optional standard mileage rate, for use by employees or self-employed individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for business purposes, is thirty-two and one-half cents (32.50) per mile.
The optional mileage rate for use by individuals in computing the income tax deductible costs of operating passenger automobiles owned by them for a charitable organization is fourteen cents (14¢) per mile.
The optional standard mileage rate allowed in computing the cost of operating a passenger automobile where transportation expenses are deductible as a medical or moving expense is ten cents (10¢) per mile.
The standard mileage rate for business use of a vehicle by a rural mail carrier as set by the Internal Revenue Service for tax year 1998 is hereby adopted. Reimbursement for a carrier's mileage shall be treated as a payment from a qualified plan. As such, mileage reimbursement will be excluded from a carrier's gross income. However, a carrier will not be allowed to deduct vehicle related expenses incurred while working as a rural mail carrier.
The mileage rates stated above shall be in effect beginning on and after January 1, 1998.
006.05.98 Ark. Code R. 026