[Federal Register Volume 60, Number 6 (Tuesday, January 10, 1995)]
[Rules and Regulations]
[Pages 2536-2539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-516]



=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 43]
RIN 3090-AF56


Federal Travel Regulation; Relocation Income Tax (RIT) Allowance 
Tax Tables

AGENCY: Federal Supply Service, GSA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal, State, and Puerto Rico tax tables for calculating 
the relocation income tax (RIT) allowance must be updated yearly to 
reflect changes in Federal, State, and Puerto Rico income tax brackets 
and rates. The Federal, State, and Puerto Rico tax tables contained in 
this rule are for calculating the 1995 RIT allowance to be paid to 
relocating Federal employees.

DATES: Effective dates: The new tables in this final rule are effective 
January 1, 1995. The change to the 1992 Puerto Rico tax table in this 
final rule is effective January 1, 1993.
    Applicability dates: The new tables in this final rule apply for 
RIT allowance payments made on or after January 1, 1995. The change to 
the 1992 Puerto Rico tax table in this final rule applies for RIT 
allowance payments made on or after January 1, 1993.

FOR FURTHER INFORMATION CONTACT: Robert A. Clauson, General Services 
Administration, Transportation Management Division (FBX), Washington, 
DC 20406, telephone 703-305-5745.

SUPPLEMENTARY INFORMATION: This amendment provides the tax tables 
necessary to compute the relocation income tax (RIT) allowance for 
employees who are taxed in 1995 on moving expense reimbursements. In 
addition, the Internal Revenue Service (IRS) informed the General 
Services Administration (GSA) that the Puerto Rico tax table for 1992 
which the IRS provided GSA contained an error. This amendment corrects 
that error.
    GSA has determined that this rule is not a significant regulatory 
action for the purposes of Executive Order 12866 of September 30, 1993. 
This final rule is not required to be published in the Federal Register 
for notice and comment. Therefore, the Regulatory Flexibility Act does 
not apply.

List of Subjects in 41 CFR Part 302-11

    Government employees, Income taxes, Relocation allowances and 
entitlements, Transfers.

    For the reasons set out in the preamble, 41 CFR part 302-11 is 
amended to read as follows:

PART 302-11--RELOCATION INCOME TAX (RIT) ALLOWANCE

    1. The authority citation for part 302-11 continues to read as 
follows:

    Authority: 5 U.S.C. 5721-5734; 20 U.S.C. 905(a); E.O. 11609, 36 
FR 13747, 3 CFR, 1971-1975 Comp., p. 586; E.O. 12466, 49 FR 7349, 3 
CFR, 1984 Comp., p. 165.

    2. Appendixes A, B, C, and D to part 302-11 are amended by adding 
the following tables at the end of each appendix, respectively; and by 
removing the rate ``33'' from the table titled ``Puerto Rico Marginal 
Tax Rates by Earned Income Level--Tax Year 1992'' in appendix D, and 
adding in its place the rate ``36'':

Appendix A to Part 302-11--Federal Tax Tables for RIT Allowance

* * * * *

Federal Marginal Tax Rates by Earned Income Level and Filing 
Status--Tax Year 1994

    The following table is to be used to determine the Federal marginal 
tax rate for Year 1 for computation of the RIT allowance as prescribed 
in Sec. 302-11.8(e)(1). This table is to be used for employees whose 
Year 1 occurred during calendar year 1994.

----------------------------------------------------------------------------------------------------------------
                             Single taxpayer     Heads of household      Married filing        Married filing   
                         --------------------------------------------  jointly/qualifying        separately     
    Marginal tax rate                                                  widows and widowers ---------------------
        (percent)                     But not               But not  ----------------------                     
                             Over       over       Over       over                But not      Over     But not 
                                                                         Over       over                  over  
----------------------------------------------------------------------------------------------------------------
15......................     $6,492    $30,068    $11,603    $43,304    $15,846    $55,773     $7,738    $27,855
28......................     30,068     67,256     43,304     97,172     55,773    115,653     27,855    58,980 
[[Page 2537]]                                                                                                   
                                                                                                                
31......................     67,256    134,936     97,172    155,995    115,653    167,653     58,980     86,842
36......................    134,936    273,705    155,995    284,250    167,653    277,401     86,842    142,545
39.6....................    273,705  .........    284,250  .........    277,401  .........    142,545  .........
----------------------------------------------------------------------------------------------------------------

Appendix B to Part 302-11--State Tax Tables for RIT Allowance

* * * * *

State Marginal Tax Rates by Earned Income Level--Tax Year 1994

    The following table is to be used to determine the State marginal 
tax rates for calculation of the RIT allowance as prescribed in 
Sec. 302-11.8(e)(2). This table is to be used for employees who 
received covered taxable reimbursements during calendar year 1994.

----------------------------------------------------------------------------------------------------------------
                                         Marginal tax rates (stated in percents) for the earned income amounts  
                                                              specified in each column1,2                       
         State (or district)         ---------------------------------------------------------------------------
                                                                                                    $75,000 and 
                                        $20,000-$24,999     $25,000-$49,999     $50,000-$74,999        over     
----------------------------------------------------------------------------------------------------------------
 1. Alabama.........................               5                   5                   5               5    
 2. Alaska..........................               0                   0                   0               0    
 3. Arizona.........................               3.25                4.0                 5.05            6.9  
    If single status\3\.............               3.25                4.0                 6.4             6.9  
 4. Arkansas........................               4.5                 7                   7               7    
    If single status\3\.............               6                   7                   7               7    
 5. California......................               2                   4                   8              11    
    If single status\3\.............               6                   9.3                 9.3            11    
 6. Colorado........................               5                   5                   5               5    
 7. Connecticut.....................               4.5                 4.5                 4.5             4.5  
 8. Delaware........................               6                   7.6                 7.7             7.7  
 9. District of Columbia............               8                   9.5                 9.5             9.5  
10. Florida.........................               0                   0                   0               0    
11. Georgia.........................               6                   6                   6               6    
12. Hawaii..........................               8                   9.5                10              10    
    If single status\3\.............               9.5                10                  10              10    
13. Idaho...........................               7.5                 7.8                 8.2             8.2  
14. Illinois........................               3                   3                   3               3    
15. Indiana.........................               3.4                 3.4                 3.4             3.4  
16. Iowa............................               6.8                 8.8                 9.98            9.98 
17. Kansas..........................               3.5                 6.25                6.25            6.45 
    If single status\3\.............               4.4                 7.75                7.75            7.75 
18. Kentucky........................               6                   6                   6               6    
19. Louisiana.......................               2                   4                   6               6    
    If single status\3\.............               4                   4                   6               6    
20. Maine...........................               4.5                 8.5                 8.5             8.5  
    If single status\3\.............               8.5                 8.5                 8.5             8.5  
21. Maryland........................               5                   5                   5               6    
22. Massachusetts...................               5.95                5.95                5.95            5.95 
23. Michigan........................               4.4                 4.4                 4.4             4.4  
24. Minnesota.......................               6                   8                   8               8.5  
    If single status\3\.............               8                   8                   8.5             8.5  
25. Mississippi.....................               5                   5                   5               5    
26. Missouri........................               6                   6                   6               6    
27. Montana.........................               6                   9                  10              11    
    If single status\3\.............               8                  10                  10              11    
28. Nebraska........................               3.65                5.24                6.99            6.99 
    If single status\3\.............               5.24                6.99                6.99            6.99 
29. Nevada..........................               0                   0                   0               0    
30. New Hampshire...................               0                   0                   0               0    
31. New Jersey......................               1.9                 2.375               3.325           6.65 
    If single status\3\.............               1.9                 4.75                6.175           6.65 
32. New Mexico......................               3.2                 6                   7.9             8.5  
    If single status\3\.............               6                   7.9                 8.5             8.5  
33. New York........................               5                   7.875               7.875           7.875
    If single status\3\.............               7.875               7.875               7.875           7.875
34. North Carolina..................               6                   7                   7               7.75 
35. North Dakota....................               6.67                9.33               12              12    
    If single status\3\.............               8                  10.67               12              12    
36. Ohio............................               2.972               4.457               5.201           7.5  
37. Oklahoma........................               5                   7                   7               7    
    If single status\3\.............               7                   7                   7              7     
[[Page 2538]]                                                                                                   
                                                                                                                
38. Oregon..........................               9                   9                   9               9    
39. Pennsylvania....................               2.8                 2.8                 2.8             2.8  
40. Rhode Island....................                               (See footnote 4)                             
    If single status\3\.............                               (See footnote 5)                             
41. South Carolina..................               7                   7                   7               7    
42. South Dakota....................               0                   0                   0               0    
43. Tennessee.......................               0                   0                   0               0    
44. Texas...........................               0                   0                   0               0    
45. Utah............................               7.2                 7.2                 7.2             7.2  
46. Vermont.........................                               (See footnote 6)                             
47. Virginia........................               5                   5.75                5.75            5.75 
48. Washington......................               0                   0                   0               0    
49. West Virginia...................               4                   4.5                 6               6.5  
50. Wisconsin.......................               6.55                6.93                6.93            6.93 
51. Wyoming.........................               0                   0                   0              0     
----------------------------------------------------------------------------------------------------------------
\1\Earned income amounts that fall between the income brackets shown in this table (e.g., $24,999.45,           
  $49,999.75) should be rounded to the nearest dollar to determine the marginal tax rate to be used in          
  calculating the RIT allowance.                                                                                
\2\If the earned income amount is less than the lowest income bracket shown in this table, the employing agency 
  shall establish an appropriate marginal tax rate as provided in Sec. 302-11.8(e)(2)(ii).                      
\3\This rate applies only to those individuals certifying that they will file under a single status within the  
  States where they will pay income taxes. All other taxpayers, regardless of filing status, will use the other 
  rate shown.                                                                                                   
\4\The income tax rate for Rhode Island (for other than single status) is 27.5 percent of Federal income tax    
  liability for employees whose earned income amounts are between $20,000-$24,999; 32 percent of Federal income 
  tax liability for employees whose earned income amounts are between $25,000-$49,999; 27.55 percent of Federal 
  income tax liability for employees whose earned income amounts are between $50,000-$74,999; and 25.05 percent 
  of Federal income tax liability for employees whose earned income amounts are $75,000 and over. Rates shown as
  a percent of Federal income tax liability must be converted to a percent of income as provided in Sec. 302-   
  11.8(e)(2)(iii).                                                                                              
\5\The income tax rate for Rhode Island (for single status) is 32 percent of Federal income tax liability for   
  employees whose earned income amounts are between $20,000-$24,999; 27.55 percent of Federal income tax        
  liability for employees whose earned income amounts are between $25,000-$74,999; and 25.05 percent of Federal 
  income tax liability for employees whose earned income amounts are $75,000 and over. Rates shown as a percent 
  of Federal income tax liability must be converted to a percent of income as provided in Sec. 302-             
  11.8(e)(2)(iii).                                                                                              
\6\The income tax rate for Vermont is 25 percent of Federal income tax liability for all employees. Rates shown 
  as a percent of Federal income tax liability must be converted to a percent of income as provided in Sec. 302-
  11.8(e)(2)(iii).                                                                                              

Appendix C to Part 302-11--Federal Tax Tables for RIT Allowance--
Year 2

* * * * *

Federal Marginal Tax Rates by Earned Income Level and Filing 
Status--Tax Year 1995

    The following table is to be used to determine the Federal marginal 
tax rate for Year 2 for computation of the RIT allowance as prescribed 
in Sec. 302-11.8(e)(1). This table is to be used for employees whose 
Year 1 occurred during calendar years 1985, 1986, 1987, 1988, 1989, 
1990, 1991, 1992, 1993, or 1994.

----------------------------------------------------------------------------------------------------------------
                             Single taxpayer     Heads of household      Married filing        Married filing   
                         --------------------------------------------  jointly/qualifying        separately     
    Marginal tax rate                                                  widows and widowers ---------------------
        (percent)                     But not               But not  ----------------------                     
                             Over       over       Over       over                But not      Over     But not 
                                                                         Over       over                  over  
----------------------------------------------------------------------------------------------------------------
15......................     $6,643    $30,783    $11,937    $44,304    $16,387    $57,249     $8,171    $28,637
28......................     30,783     68,684     44,304    102,201     57,249    119,362     28,637     59,017
31......................     68,684    139,546    102,201    163,966    119,362    173,514     59,017     88,341
36......................    139,546    283,746    163,966    294,200    173,514    286,217     88,341    147,650
39.6....................    283,746  .........    294,200  .........    286,217  .........    147,650  .........
----------------------------------------------------------------------------------------------------------------

Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance

* * * * *

Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 
1994

    The following table is to be used to determine the Puerto Rico 
marginal tax rate for computation of the RIT allowance as prescribed in 
Sec. 302-11.8(e)(4)(i).

----------------------------------------------------------------------------------------------------------------
                                                                   Single filing status      Any other filing   
                                                                 ------------------------         status        
                   Marginal tax rate (percent)                                           -----------------------
                                                                     Over       But not                 But not 
                                                                                 over        Over        over   
----------------------------------------------------------------------------------------------------------------
15..............................................................  ..........  ..........  ..........     $25,000
25..............................................................  ..........     $25,000  ..........  ..........
36..............................................................     $25,000  ..........     $25,000  ..........
----------------------------------------------------------------------------------------------------------------

     [[Page 2539]] Dated: December 28, 1994.
Julia M. Stasch,
Acting Administrator of General Services.
[FR Doc. 95-516 Filed 1-9-95; 8:45 am]
BILLING CODE 6820-24-P