[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Rules and Regulations]
[Pages 14637-14639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7830]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 71]
RIN 3090-AG48


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

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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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 1998 RIT allowance to be paid to 
relocating Federal employees.

DATES: This final rule is effective January 1, 1998, and applies for 
RIT allowance payments made on or after January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Calvin L. Pittman, Office of 
Governmentwide Policy (MTT), Washington, DC 20405, telephone 202-501-
1538.

SUPPLEMENTARY INFORMATION: This amendment provides the tax tables 
necessary to compute the relocation income tax (RIT) allowance for 
employees who are taxed in 1998 on moving expense reimbursements.
    The General Services Administration 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. This rule also is exempt 
from Congressional review prescribed under 5 U.S.C. 801 since it 
relates solely to agency management and personnel.

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 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1975 Comp., p. 586.

    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:

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 1997

    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 1997.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                Marginal tax rate                      Single taxpayer         Heads of household      Married filing jointly/       Married filing     
-----------------------------------------------------------------------------------------------------    qualifying widows &           separately       
                                                                                                              widowers         -------------------------
                                                                 But not                   But not   --------------------------                         
                     Percent                          Over         over         Over         over                    But not        Over       But not  
                                                                                                          Over         over                      over   
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,067      $32,674      $12,963      $46,966      $16,798      $59,856       $8,702      $29,669
28..............................................       32,674       71,647       46,966      104,632       59,856      123,931       29,669       62,023
31..............................................       71,647      141,006      104,632      161,381      123,931      180,221       62,023       92,072
36..............................................      141,006      288,900      161,381      293,567      180,221      299,695       92,072      152,835
39.6............................................      288,900  ...........      293,567  ...........      299,695  ...........     -152,835  ...........
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Appendix--B to Part 302-11--State Tax Tables for RIT Allowance

*                  *                  *                    *        
            *                  *                  *

[[Page 14638]]

State Marginal Tax Rates by Earned Income Level--Tax Year 1997

    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 1997.

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     Marginal tax rates (stated in percents) for the earned income amounts specified in each column.\1\ \2\     
-----------------------------------------------------------------------------------------------------------------
                                                                                                      $75,000 & 
              State (or district)                $20,000-$24,999  $25,000-$49,999  $50,000-$74,999      over    
----------------------------------------------------------------------------------------------------------------
Alabama........................................           5                5                5              5    
Alaska.........................................           0                0                0              0    
Arizona........................................           2.9              3.3              3.9            5.17 
Arkansas.......................................           4.5              7                7              7    
    If single status \3\.......................           6                7                7              7    
California.....................................           2                4                8              9.3  
    If single status \3\.......................           4                9.3              9.3            9.3  
Colorado.......................................           5                5                5              5    
Connecticut....................................           3                4.5              4.5            4.5  
    If single status \3\.......................           4.5              4.5              4.5            4.5  
Delaware.......................................           5.8              6.9              6.9            6.9  
District of Columbia...........................           8                9.5              9.5            9.5  
Florida........................................           0                0                0              0    
Georgia........................................           6                6                6              6    
Hawaii.........................................           8                9.5             10             10    
    If single status \3\.......................           9.5             10               10             10    
Idaho..........................................           7.8              8.2              8.2            8.2  
Illinois.......................................           3                3                3              3    
Indiana........................................           3.4              3.4              3.4            3.4  
Iowa...........................................           6.8              7.55             9.98           9.98 
    If single status \3\.......................           7.2              8.8              9.98           9.98 
Kansas.........................................           3.5              6.25             6.25           6.45 
    If single status \3\.......................           4.4              7.75             7.75           7.75 
Kentucky.......................................           6                6                6              6    
Louisiana......................................           2                4                4              6    
    If single status \3\.......................           4                4                6              6    
Maine..........................................           4.5              7                8.5            8.5  
    If single status \3\.......................           8.5              8.5              8.5            8.5  
Maryland.......................................           5                5                5              5    
Massachusetts..................................           5.95             5.95             5.95           5.95 
Michigan.......................................           4.4              4.4              4.4            4.4  
Minnesota......................................           6                8                8              8.5  
    If single status \3\.......................           8                8                8.5            8.5  
Mississippi....................................           5                5                5              5    
Missouri.......................................           6                6                6              6    
Montana........................................           6                9               10             11    
Nebraska.......................................           3.65             5.24             6.99           6.99 
    If single status \3\.......................           5.24             6.99             6.99           6.99 
Nevada.........................................           0                0                0              0    
New Hampshire..................................           0                0                0              0    
New Jersey.....................................           1.4              1.75             2.45           6.37 
    If single status \3\.......................           1.4              3.50             5.525          6.37 
New Mexico.....................................           3.2              6                7.1            8.5  
    If single status \3\.......................           6                7.1              7.9            8.5  
New York.......................................           4                5.9              6.85           6.85 
    If single status \3\.......................           5.9              6.85             6.85           6.85 
North Carolina.................................           6                7                7              7.75 
North Dakota...................................           6.67             9.33            12             12    
    If single status \3\.......................           8               10.67            12             12    
Ohio...........................................           2.853            4.279            4.993          7.201
Oklahoma.......................................           4                7                7              7    
    If single status \3\.......................           7                7                7              7    
Oregon.........................................           9                9                9              9    
Pennsylvania...................................           2.8              2.8              2.8            2.8  
Rhode Island...................................          27.5             27.5             27.5           27.5  
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                                         (Rhode Island--See Footnote 4)                                         
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South Carolina.................................           7                7                7              7    
South Dakota...................................           0                0                0              0    
Tennessee......................................           0                0                0              0    
Texas..........................................           0                0                0              0    
Utah...........................................           7                7                7              7    
Vermont........................................          25               25               25             25    
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[[Page 14639]]

                                                                                                                
                                           (Vermont--See Footnote 5)                                            
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Virginia.......................................           5                5.75             5.75           5.75 
Washington.....................................           0                0                0              0    
West Virginia..................................           4                4.5              6              6.5  
Wisconsin......................................           6.55             6.93             6.93           6.93 
Wyoming........................................           0                0                0             0     
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\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 is 27.5 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).                                                                                 
\5\ 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 1998

    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 1988, 1989, 1990, 1991, 1992, 
1993, 1994, 1995, 1996, or 1997.

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                Marginal tax rate                      Single taxpayer         Heads of household      Married filing jointly/       Married filing     
-----------------------------------------------------------------------------------------------------    qualifying widows &           separately       
                                                                                                              widowers         -------------------------
                                                                 But not                   But not   --------------------------                         
                     Percent                          Over         over         Over         over                    But not        Over       But not  
                                                                                                          Over         over                      over   
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,229      $33,530      $12,964      $48,232      $16,858      $61,069       $8,685      $30,351
28..............................................       33,530       73,135       48,232      109,311       61,069      126,880       30,351       63,863
31..............................................       73,135      145,648      109,311      177,378      126,880      184,945       63,863       92,550
36..............................................      145,648      299,410      177,378      321,683      184,945      308,061       92,550      152,715
39.6............................................      299,410  ...........      321,683  ...........      308,061  ...........      152,715  ...........
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Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance

*                  *                  *                  *          
        *

Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 
1997

    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).

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                      Marginal tax rate                         Single filing status     Any other filing status
----------------------------------------------------------------------------------------------------------------
                                                                             But not                   But not  
                           Percent                                Over         over         Over         over   
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12..........................................................  ...........  ...........  ...........      $25,000
18..........................................................  ...........      $25,000  ...........  ...........
31..........................................................      $25,000       50,000      $25,000       50,000
33..........................................................       50,000  ...........       50,000  ...........
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    Dated: March 10, 1998.
Thurman M. Davis, Sr.,
Acting Administrator of General Services.
[FR Doc. 98-7830 Filed 3-25-98; 8:45 am]
BILLING CODE 6820-34-P