[Federal Register Volume 68, Number 33 (Wednesday, February 19, 2003)]
[Rules and Regulations]
[Pages 7941-7944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3882]


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GENERAL SERVICES ADMINISTRATION

41 CFR Chapter 302

[FTR Case 2003-302; FTR Amendment 2003-01]
RIN 3090-AH78


Federal Travel Regulation; Relocation Income Tax (RIT) Allowance 
Tax Tables (2003 Update)

AGENCY: Office of Governmentwide Policy, General Services 
Administration (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 2003 RIT allowance to be paid to 
relocating Federal employees.

DATES: This final rule is effective January 1, 2003, and applies for 
RIT allowance payments made on or after January 1, 2003.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC, 20405, (202) 208-7312, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Calvin L. Pittman, Office of Governmentwide 
Policy, Travel Management Policy, at (202) 501-1538. Please cite FTR 
case 2003-302, FTR Amendment 2003-01.

SUPPLEMENTARY INFORMATION: 

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 302-17). The

[[Page 7942]]

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

    This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

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 changes to 
the FTR do not impose recordkeeping or information collection 
requirements, or the collection of information from offerors, 
contractors, or members of the public that 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 Chapter 302

    Government employees, Income taxes, Relocation allowances and 
entitlements, Transfers, Travel and transportation expenses.

    Dated: February 6, 2003.
Stephen A. Perry,
Administrator of General Services.

    For the reasons set forth in the preamble, under 5 U.S.C. 5701-
5709, GSA amends 41 CFR part 302-17 as set forth below:

CHAPTER 302-17--RELOCATION INCOME TAX (RIT) ALLOWANCE

    1. The authority citation for 41 CFR part 302-17 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. Revise Appendixes A, B, C, and D to part 302-17 to read as 
follows:

Appendix A to Part 302-17--Federal Tax Tables for RIT Allowance

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 1 for computation of the RIT allowance as 
prescribed in Sec.  302-17.8(e)(1). This table is to be used for 
employees whose Year 1 occurred during calendar year 2002.

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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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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 B to Part 302-17--State Tax Tables For RIT Allowance

State Marginal Tax Rates by Earned Income Level--Tax Year 2002

    The following table is to be used to determine the State 
marginal tax rates for calculation of the RIT allowance as 
prescribed in Sec.  302-17.8(e)(2). This table is to be used for 
employees who received covered taxable reimbursements during 
calendar year 2002.

                           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......................................                        4                         6                         8                       9.3
    If single status \3\........................                        6                         8                       9.3                       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                         9                         9                         9
Florida.........................................                        0                         0                         0                         0
Georgia.........................................                        6                         6                         6                         6
Hawaii..........................................                      6.4                       7.6                      8.25                      8.25
    If single status \3\........................                      7.6                      8.25                      8.25                      8.25
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                      6.45                      6.45
    If single status \3\........................                     6.25                      6.45                      6.45                      6.45
Kentucky........................................                        6                         6                         6                         6

[[Page 7943]]

 
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........................................                     4.75                      4.75                      4.75                      4.75
Massachusetts...................................                      5.3                       5.3                       5.3                       5.3
Michigan........................................                      4.1                       4.1                       4.1                       4.1
Minnesota.......................................                     5.35                      7.05                      7.05                      7.85
    If single status \3\........................                     7.05                      7.05                      7.85                      7.85
Mississippi.....................................                        5                         5                         5                         5
Missouri........................................                        6                         6                         6                         6
Montana.........................................                        8                         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                       3.5                     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                       5.9                      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....................................                      2.1                      3.92                      4.34                      5.04
    If single status \3\........................                      2.1                      3.92                      5.04                      5.04
Ohio............................................                    3.715                     4.457                     5.201                       6.9
Oklahoma........................................                        9                        10                        10                        10
    If single status \3\........................                       10                        10                        10                        10
Oregon..........................................                        9                         9                         9                         9
Pennsylvania....................................                      2.8                       2.8                       2.8                       2.8
Rhode Island \4\................................                       25                        25                        25                        25
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........................................                     5.75                      5.75                      5.75                      5.75
Washington......................................                        0                         0                         0                         0
West Virginia...................................                        4                       4.5                         6                       6.5
Wisconsin.......................................                     6.15                       6.5                       6.5                      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.   302-17.8(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 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.   302-17.8(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.   302-17.8(e)(2)(iii).

Appendix C to Part 302-17--Federal Tax Tables for RIT Allowance--Year 2

Federal Marginal Tax Rates by Earned Income Level and Filing Status--
Tax Year 2003

    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.  302-17.8(e)(1). This table is to be used for 
employees whose Year 1 occurred during calendar years 1993, 1994, 
1995, 1996, 1997, 1998, 1999, 2001, or 2002.

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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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10..............................................       $8,274      $14,314      $15,005      $25,136      $20,977      $32,559      $10,958      $16,536
15..............................................       14,314       37,771       25,136       54,712       32,559       69,722       16,536       34,507
27..............................................       37,771       81,890       54,712      122,788       69,722      142,842       34,507       70,442
30..............................................       81,890      162,802      122,788      193,703      142,842      206,675       70,442      107,631
35..............................................      162,802      334,763      193,703      350,138      206,675      343,919      107,631      181,753
38.6............................................      334,763  ...........      350,138  ...........      343,919  ...........      181,753  ...........
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[[Page 7944]]

Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2002

    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.  302-17.8(e)(4)(i).

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          Marginal tax rate                   Single filing status                 Any other filing status
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               Percent                       Over           But not over           Over           But not over
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10..................................  .................  .................  .................            $25,000
15..................................  .................            $25,000  .................  .................
28..................................            $25,000             50,000            $25,000             50,000
33..................................             50,000  .................            $50,000  .................
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[FR Doc. 03-3882 Filed 2-18-03; 8:45 am]
BILLING CODE 6820-24-P