[Federal Register Volume 64, Number 67 (Thursday, April 8, 1999)]
[Rules and Regulations]
[Pages 17105-17108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8685]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

RIN 3090-AG91
[FTR Amendment 80--1998 Edition]


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 1999 RIT allowance to be paid to 
relocating Federal employees.

EFFECTIVE DATE: This final rule is effective January 1, 1999, and 
applies to RIT allowance payments made on or after January 1, 1999.

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 RIT allowance for employees who are taxed in 
1999 on moving expense reimbursements.

A. Background

    Section 5724b of Title 5, United States Code, provides for 
reimbursement of substantially all Federal, State, and local income 
taxes incurred by a transferred Federal employee on taxable moving and 
storage expense reimbursements. Policies and procedures for the 
calculation and payment of a RIT allowance is contained in the FTR (41 
CFR part 302-11). The Federal, State, and Puerto Rico tax tables for 
calculating RIT allowance payments are updated yearly to reflect 
changes in Federal, State, and Puerto Rico income tax brackets and 
rates.

B. Executive Order 12866

    The General Services Administration (GSA) has determined that this 
final rule is not a significant regulatory action for the purposes of 
Executive Order 12866 of September 30, 1993.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment; therefore, the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq., does not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
revisions do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 501 et seq.

E. Small Business Regulatory Enforcement Reform Act

    This final rule is also 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 forth 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 41 CFR part 302-11 continues 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

* * * * *

[[Page 17106]]



                                   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 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 1998.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Marginal tax rate                         Single taxpayer       Heads of household    Married filing jointly/     Married Filing
---------------------------------------------------------------------------------------------------------  qualifying widows and        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 B to Part 302-11--State Tax Tables For RIT Allowance

* * * * *

                                             State Marginal Tax Rates by Earned Income Level--Tax Year 1998
[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 1998.]
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                           Marginal tax rates (stated in percents) for the earned income amounts specified in each column.1 2
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                       State (or district)                           $20,000-$24,999       $25,000-$49,999       $50,000-$74,999       $75,000 & Over
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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..............................................                 4.1                   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.......................................................                 8                     8                     8                     8.5
If single status 3..............................................                 8                     8.5                   8.5                   8.5
Mississippi.....................................................                 5                     5                     5                     5
Missouri........................................................                 6                     6                     6                     6
Montana.........................................................                 6                     9                    10                    11
Nebraska........................................................                 3.49                  5.01                  6.68                  6.68
If single status 3..............................................                 5.01                  6.68                  6.68                  6.68
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                     6                     7.125                 7.125

[[Page 17107]]

 
If single status 3..............................................                 6                     7.125                 7.125                 7.125
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 4..................................................                27                    27                    27                    27
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 5.......................................................                25                    25                    25                    25
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 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 1999
[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 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, or
                                                                         1998.]
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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
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15......................................................      $7,288     $33,937     $13,132     $48,851     $17,078     $62,143      $8,480     $30,536
28......................................................      33,937      73,812      48,851     109,613      62,143     128,360      30,536      61,844
31......................................................      73,812     145,735     109,613     177,494     128,360     185,189      61,844      95,644
36......................................................     145,735     300,782     177,494     324,383     185,189     309,316      95,644     164,417
39.6....................................................     300,782                 324,383                 309,316                 164,417
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Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance

* * * * *

[[Page 17108]]



                      Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 1998
  [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
----------------------------------------------------------------------------------------------------------------
                     Percent                           Over        But not over        Over        But not 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 24, 1999
David J. Barram,
Administrator of the General Services.
[FR Doc. 99-8685 Filed 4-7-99; 8:45 am]
BILLING CODE 6820-34-P