[Federal Register Volume 67, Number 22 (Friday, February 1, 2002)]
[Rules and Regulations]
[Pages 4923-4925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2431]



[[Page 4923]]

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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 102]
RIN 3090-AH55


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 2002 RIT allowance to be paid to 
relocating Federal employees.

DATES: This final rule is effective January 1, 2002, and applies for 
RIT allowance payments made on or after January 1, 2002.

FOR FURTHER INFORMATION CONTACT: Calvin L. Pittman, Office of 
Governmentwide Policy, Travel Management 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 2002 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 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 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.
    For the reasons set forth in the preamble, 41 CFR part 302-11 is 
amended as follows:

PART 302--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 currently in effect are 
amended by adding the following tables 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 2001

    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). The following table is to be used for employees 
whose Year 1 occurred during calendar year 2001:

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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..............................................       $7,582      $35,363      $13,905      $51,016      $18,061      $65,011       $8,742      $32,028
28..............................................       35,363       77,472       51,016      116,612       65,011      133,818       32,028       65,470
31..............................................       77,472      154,524      116,612      180,660      133,818      193,566       65,470       99,363
36..............................................      154,524      317,548      180,660      324,522      193,566      323,455       99,363      169,100
39.6............................................      317,548  ...........      324,522  ...........      323,455  ...........      169,100  ...........
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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 2001

    The following table is to be used to determine the State marginal 
tax rates for calculation of the RIT allowance as prescribed in 
Sec. 301-11.8(e)(2). The following table is to be used for employees 
who received covered taxable reimbursements during calendar year 2001:

[[Page 4924]]



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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.....................                2.87                 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 \4\....                4                    8                    8                    9.3
Colorado....................                4.63                 4.63                 4.63                 4.63
Connecticut.................                4.5                  4.5                  4.5                  4.5
Delaware....................                5.2                  5.55                 5.95                 5.95
District of Columbia........                7.5                  9.5                  9.5                  9.5
Florida.....................                0                    0                    0                    0
Georgia.....................                6                    6                    6                    6
Hawaii......................                6.9                  7.9                  8.5                  8.5
    If single status \3\....                7.9                  8.5                  8.5                  8.5
Idaho.......................                7.4                  7.8                  7.8                  7.8
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\....                6.25                 6.45                 6.45                 6.45
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\....                7                    8.5                  8.5                  8.5
Maryland....................                4.8                  4.8                  4.8                  4.8
Massachusetts...............                5.85                 5.85                 5.85                 5.85
Michigan....................                4.2                  4.2                  4.2                  4.2
Minnesota...................                5.36                 7.05                 7.05                 7.85
    If single status \3\....                7.05                 7.05                 7.05                 7.85
Mississippi.................                5                    5                    5                    5
Missouri....................                6                    6                    6                    6
Montana.....................                9                   10                   11                   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                  3.5                  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........................                3.715                4.457                5.201                6.9
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\............               25.5                 25.5                 25.5                 25.5
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...................                6.5                  6.75                 6.75                 6.75
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 25.5 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).

[[Page 4925]]

 
\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--Federal Tax Tables for RIT Allowance--
Year 2

* * * * * * *

Federal Marginal Tax Rates by Earned Income Level and Filing 
Status--Tax Year 2002

    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). The following table is to be used for employees 
whose Year 1 occurred during calendar years 1992, 1993, 1994, 1995, 
1996, 1997, 1998, 1999, 2000 or 2001:

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                                                       Single Taxpayer         Heads of Household      Married Filing Jointly/       Married filing
                                                 ----------------------------------------------------    Qualifying Widows &           separately
                                                                                                              Widowers         -------------------------
            Marginal tax rate Percent                            But not                   But not   --------------------------
                                                      Over         over         Over         over                    But not        Over       But not
                                                                                                          Over         over                      over
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10..............................................       $8,137      $14,130      $14,743      $24,811      $20,219      $31,833      $11,770      $16,693
15..............................................       14,130       37,040       24,811       53,556       31,833       67,914       16,693       33,839
27..............................................       37,040       80,140       53,556      118,624       67,914      139,528       33,839       69,420
30..............................................       80,140      158,281      118,624      184,826      139,528      201,236       69,420      105,672
35..............................................      158,281      326,339      184,826      337,037      201,236      335,297      105,672      178,317
38.6............................................      326,339  ...........      337,037  ...........      335,297  ...........      178,317  ...........
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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 
2001

    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      ---------------------------------------------------------------------------
                                             Over           But Not Over           Over           But Not Over
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11..................................  .................  .................  .................            $25,000
16.5................................  .................            $25,000  .................  .................
29.5................................            $25,000             50,000            $25,000             50,000
33..................................             50,000  .................             50,000  .................
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    Dated: January 25, 2002.
Stephen A. Perry,
Administrator of General Services.
[FR Doc. 02-2431 Filed 1-31-02; 8:45 am]
BILLING CODE 6820-34-P