DLC: Mileage Reimbursement

The VSB reimburses individual employees, on a per kilometre basis, for their use of personal vehicles for business purposes.  The reimbursement rates are based on a portion of estimated actual costs (fixed and operating).  The VSB has three rate categories:  non-tool, tool and casual.

The following method for determining a reasonable and equitable vehicle mileage rate reimbursement was developed by the VSB to cover business use of employees’ personal vehicles.

The three categories of employees requiring vehicle use reimbursement are:

Employees who qualify for the non-tool rate (see Exhibit DLC-E)

• Include itinerant teachers/support staff and outside workers who are required to use their vehicles for business related travel on a regular basis.
• District/Area Administrators/Senior Management who are required to use their vehicle for business related travel on a regular basis.

Employees who qualify for the tool rate (see Exhibit DLC-E)

• Includes trades and outside workers who are required to use their vehicles for business related travel on a regular basis and are required to transport tools/materials.
• Itinerant teachers who are required to use their vehicles for business related travel on a regular basis and are required to transport specialized equipment.

Employees who qualify for the casual rate

• Employees other than above who from time to time are required to use their vehicles for business related travel.

Rate Categories

Casual Rate

The VSB reimbursement rate is the Canada Revenue Agency (CRA) Automobile Allowance rate.

Tool & Non-Tool Rate

Variable and fixed costs are reviewed and updated annually on July 1, with the exception of fuel.  Fuel is reviewed and updated monthly, resulting in a rate change each month.

Fixed Costs

Fixed costs are reimbursed to employees over the first 257 kilometres driven per month (non-tool rate) and the first 177 kilometres driven per month (tool-rate).

Monthly Lease Costs

The Accounting Department obtains lease rates based on the following terms:

Tool Rate:

Vehicle used:  Dodge Caravan, or comparable vehicle

• MSRP, per manufacturer’s website, www.dodge.ca
• zero down payment
• 36 month closed lease, 25,000 km/year
• 40% residual value
• 9.95% interest rate
• lease costs include GST and PST, and are based on the three-year average lease rate

Non-tool Rate:

Vehicle used:  Dodge Caliber, or comparable vehicle

• lease calculator on manufacturer’s website, www.dodge.ca
• MSRP zero down payment
• 36 month closed lease
• interest rate as stated on website
• lease costs include GST & PST, and are based on the three-year average lease rate

License and Insurance Costs

Based on:

• license fees
• $1 million Third-Party Legal Liability
• $300 collision and comprehensive deductible
• average discount for safe driving (7 years)
• the Non-tool rate is calculated using the business use rate class
• the Tool rate is calculated using the artisan use rate class. *

* Individuals receiving the tool rate should discuss the details of his/her situation with his/her Autoplan Agent to determine whether the artisan use rate class would be appropriate.

The lease and insurance costs are shared with the employee on the basis of 230 working days in a year.  It is estimated that the personal use of these vehicles during these days including time spent traveling between home and the office is 2 hours per day giving rise to a total usage per day of 9.5 hours.  The VSB use of the vehicle would be 7.5/9.5 x 230 days = 49.7% of the vehicle time available per year.

The additional insurance required for business or artisan use is reimbursed 100% to the employee over the first 257 kilometres driven per month (non-tool rate) and the first 177 kilometres driven per month (tool rate).

Variable Costs

Fuel Costs

Source:  Natural Resources Canada website (Average Retail Prices for Regular Gasoline – last 52 weeks)

The average cost of regular gasoline in Vancouver for the previous month is used to calculate rates for the current month.

Non-tool rate – 7.15 km/litre fuel efficiency
Tool rate – 5.36 km/litre fuel efficiency

Maintenance Costs

1.55 cents per kilometre

Tool Allowance

Applicable only to Tool rate:

3.11 cents per kilometre

Minimum Allowance for Trades

All trades workers will receive a minimum monthly mileage reimbursement of $100.00.  In order for a trade employee to qualify for the $100.00 minimum monthly allowance the following criteria must be met.

• the employee must be required to have his personal vehicle available for Board business purposes during the month; and
• the employee must have worked during the month. 

Setting Rates

April 2012 rates 

Non-Tool Rate

For the first 257 kilometers driven during the month the reimbursement rate is $1.2062per kilometer.

For all kilometers driven during the month exceeding 257 kilometers the reimbursement rate is $0.2126 per kilometer. 

Fixed costs are reimbursed for the first 257 kilometers driven during the month while kilometers driven in excess of 257 kilometers are reimbursed for variable costs only ($0.2126 per kilometer).

Tool Rate

For the first 177 kilometers driven during the month the reimbursement rate is $3.1523 per kilometer.

For all kilometers driven during the month exceeding 177 kilometers the reimbursement rate is $0.3095 per kilometer. 

Fixed costs are reimbursed for the first 177 kilometers driven during the month while kilometers driven in excess of 177 kilometers are reimbursed for variable costs only ($0.3095 per kilometer).

Application for Reimbursement

In order to receive reimbursement for mileage, employees must complete a “Claim for Mileage Reimbursement”, have it approved by his/her Supervisor and forward it to the Payroll Department.

DMT Responsibility: AST-Finance