[Federal Register Volume 65, Number 35 (Tuesday, February 22, 2000)]
[Rules and Regulations]
[Pages 8657-8660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4059]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 91]
RIN 3090-AH14


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 2000 RIT allowance to be paid to 
relocating Federal employees.

DATES: This final rule is effective January 1, 2000, and applies for 
RIT allowance payments made on or after January 1, 2000.

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 2000 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 
expense reimbursements. Policies and procedures for the calculation and 
payment of a RIT allowance are contained in the Federal Travel 
Regulation (41 CFR 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 this final rule 
does 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. 3501 et seq.

E. Small Business Regulatory Enforcement Fairness 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, Travel and transportation expenses.


[[Page 8658]]


    For the reasons set forth in the preamble, 41 CFR part 302-11 is 
amended 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 a 
new table at the end of each appendix, respectively, to read as 
follows:

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 1999

    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 1999.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Single taxpayer     Heads of household      Married filing        Married filing
                                                                 --------------------------------------------  jointly/qualifying        separately
                                                                                                               widows and widowers ---------------------
                   Marginal tax rate (percent)                                But not               But not  ----------------------
                                                                     Over       over       Over       over                But not      Over     But not
                                                                                                                 Over       over                  over
--------------------------------------------------------------------------------------------------------------------------------------------------------
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 B to Part 302-11--State Tax Tables For RIT Allowance

* * * * *

State Marginal Tax Rates by Earned Income Level--Tax Year 1999

    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 1999.

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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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                                                                                                     $75,000 and
              State (or district)                $20,000-$24,999  $25,000-$49,999  $50,000-$74,999      over
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Alabama........................................           5                5                5              5
Alaska.........................................           0                0                0              0
Arizona........................................           2.87             3.2              3.74           5.04
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                8                8              9.3
Colorado.......................................           4.75             4.75             4.75           4.75
Connecticut....................................           4.5              4.5              4.5            4.5
Delaware.......................................           5.2              5.95             6.4            6.4
District of Columbia...........................           8                9.5              9.5            9.5
Florida........................................           0                0                0              0
Georgia........................................           6                6                6              6
Hawaii.........................................           7.2              8.2              8.75           8.75
  If single status \3\.........................           8.2              8.75             8.75           8.75
Idaho..........................................           7.8              8.2              8.2            8.2
Illinois.......................................           3                3                3              3
Indiana........................................           3.4              3.4              3.4            3.4
Iowa...........................................           6.48             7.92             8.98           8.98
  If single status \3\.........................           6.8              7.92             8.98           8.98
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.......................................           4.8              4.8              4.8            4.8
Massachusetts..................................           5.95             5.95             5.95           5.95
Michigan.......................................           4.3              4.3              4.3            4.3
Minnesota......................................           5.5              7.25             7.25           8
  If single status \3\.........................           7.25             7.25             8              8
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

[[Page 8659]]

 
New Hampshire..................................           0                0                0              0
New Jersey.....................................           1.4              1.75             2.45           6.37
  If single status \3\.........................           1.4              3.5              5.525          6.37
New Mexico.....................................           3.2              6                7.1            8.2
  If single status \3\.........................           6                7.1              7.9            8.2
New York.......................................           4                5.25             6.85           6.85
  If single status \3\.........................           5.25             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...........................................           2.694            4.040            4.715          6.799
Oklahoma.......................................           5                6.75             6.75           6.75
  If single status \3\.........................           6.75             6.75             6.75           6.75
Oregon.........................................           9                9                9              9
Pennsylvania...................................           2.8              2.8              2.8            2.8
Rhode Island \4\...............................          26               26               26             26
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\....................................          24               24               24             24
Virginia.......................................           5                5.75             5.75           5.75
Washington.....................................           0                0                0              0
West Virginia..................................           4                4.5              6              6.5
Wisconsin......................................           6.37             6.77             6.77           6.77
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 26 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 24 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--Tax Tables For RIT Allowance--Year 2

* * * * *

Federal Marginal Tax Rates by Earned Income Level and Filing Status--
Tax Year 2000

    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 1990, 1991, 
1992, 1993, 1994, 1995, 1996, 1997, 1998, or 1999.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Single taxpayer     Heads of household      Married filing        Married filing
                                                                 --------------------------------------------  jointly/qualifying        separately
                                                                                                               widows and widowers ---------------------
                   Marginal tax rate (percent)                                But not               But not  ----------------------
                                                                     Over       over       Over       over                But not      Over     But not
                                                                                                                 Over       over                  over
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................................     $7,417    $34,638    $13,375    $49,734    $17,421    $63,297     $8,603    $31,342
28..............................................................     34,638     75,764     49,734    113,413     63,297    131,334     31,342     63,448
31..............................................................     75,764    148,990    113,413    180,742    131,334    189,826     63,448     99,219
36..............................................................    148,990    306,111    180,742    326,450    189,826    315,957     99,219    170,524
39.6............................................................    306,111  .........    326,450  .........    315,957  .........    170,524  .........
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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 1999

    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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                                                                Single filing status     Any other filing status
                                                             ---------------------------------------------------
                 Marginal tax rate (percent)                                 But not                   But not
                                                                  Over         over         Over         over
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12..........................................................  ...........  ...........  ...........      $25,000
18..........................................................  ...........      $25,000  ...........  ...........

[[Page 8660]]

 
31..........................................................      $25,000       50,000      $25,000       50,000
33..........................................................       50,000  ...........       50,000  ...........
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    Dated: February 14, 2000.
David J. Barram,
Administrator of General Services.
[FR Doc. 00-4059 Filed 2-18-00; 8:45 am]
BILLING CODE 6820-24-P