[Federal Register Volume 69, Number 50 (Monday, March 15, 2004)]
[Rules and Regulations]
[Pages 12079-12081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5715]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-17

[FTR Amendment 2004-01; FTR Case 2004-301]
RIN 3090-AH94


Federal Travel Regulation; Relocation Income Tax Allowance Tax 
Tables (2004 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 2004 RIT allowance to be paid to 
relocating Federal employees.

DATES: Effective Date: January 1, 2004.

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 Sallie Sherertz, Office of Governmentwide Policy, 
Travel Management Policy, at (202) 219-3455. Please cite FTR Amendment 
2004-01, FTR case 2004-301.

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 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 Part 302-17

    Government employees, Travel and transportation expenses.

    Dated: February 27, 2004.
Stephen A. Perry,
Administrator of General Services.

0
For the reasons set forth in the preamble, under 5 U.S.C. 5701-5739, 
GSA amends 41 CFR part 302-17 as set forth below:

Chapter 302 Relocation Allowances

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

0
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.

0
2. Revise Appendixes A, B, and C 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 2003

    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 2003.

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                        Marginal tax rate                            Single taxpayer     Heads of household      Married filing        Married filing
-------------------------------------------------------------------------------------------------------------  jointly/qualifying        separately
                                                                                                                widows & 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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Appendix B to Part 302-17--State Tax Tables For RIT Allowance

State Marginal Tax Rates by Earned Income Level--Tax Year 2003

    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 2003.

[[Page 12080]]



      Marginal Tax Rates (Stated in Percents) For the Earned Income Amounts Specified in Each Column.\1,2\
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                                                                                                     \3\ $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.........................................          3.20             3.74             4.72           5.04
Arkansas........................................          6                7                7              7
California......................................          2                4                8              9.3
If single status \4\............................          6                8                9.3            9.3
Colorado........................................          4.63             4.63             4.63           4.63
Connecticut.....................................          5                5                5              5
Delaware........................................          5.2              5.55             5.95           5.95
District of Columbia............................          7.5              9.3              9.3            9.3
Florida.........................................          0                0                0              0
Georgia.........................................          6                6                6              6
Hawaii..........................................          6.4              7.6              8.25           8.25
If single status \4\............................          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
Kansas..........................................          3.5              6.25             6.45           6.45
If single status \4\............................          6.25             6.45             6.45           6.45
Kentucky........................................          6                6                6              6
Louisiana.......................................          4                6                6              6
Maine...........................................          7                8.5              8.5            8.5
If single status \4\............................          8.5              8.5              8.5            8.5
Maryland........................................          4                4                4              4
Massachusetts...................................          5.3              5.3              5.3            5.3
Michigan........................................          4                4                4              4
Minnesota.......................................          5.35             7.05             7.05           7.05
If single status \4\............................          7.05             7.05             7.85           7.85
Mississippi.....................................          5                5                5              5
Missouri........................................          6                6                6              6
Montana.........................................          7                9               10             10
Nebraska........................................          3.57             5.12             6.84           6.84
If single status \4\............................          5.12             6.84             6.84           6.84
Nevada..........................................          0                0                0              0
New Hampshire...................................          0                0                0              0
New Jersey......................................          1.75             1.75             2.45           3.5
If single status \4\............................          1.75             3.5              5.525          6.37
New Mexico......................................          4.7              6                7.1            7.7
If single status \4\............................          6                7.1              7.7            7.7
New York........................................          5.25             5.9              6.85           6.85
If single status \4\............................          6.85             6.85             6.85           6.85
North Carolina..................................          7                7                7              7
North Dakota....................................          2.1              2.1              3.92           3.92
If single status \4\............................          2.1              2.1              3.92           4.34
Ohio............................................          4.457            4.457            5.201          5.201
Oklahoma........................................          7                7                7              7
Oregon..........................................          9                9                9              9
Pennsylvania....................................          2.8              2.8              2.8            2.8
Rhode Island \5\................................         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 \6\.....................................          3.6              3.6              7.2            8.5
If single status \4\............................          3.6              7.2              7.2            8.5
Virginia........................................          5.75             5.75             5.75           5.75
Washington......................................          0                0                0              0
West Virginia...................................          4                4.5              6              6.5
Wisconsin.......................................          6.5              6.5              6.5            6.5
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 is an estimate. For earnings over $100,000, please consult actual tax tables.
\4\ 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.
\5\ 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).

[[Page 12081]]

 
\6\ 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 2004

    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 1994, 1995, 1996, 1997, 1998, 
1999, 2000, 2001, 2002, or 2003.

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                        Marginal tax rate                            Single taxpayer     Heads of household      Married filing        Married filing
-------------------------------------------------------------------------------------------------------------  jointly/qualifying        separately
                                                                                                                widows & widowers  ---------------------
                                                                              But not               But not  ----------------------
                             Percent                                 Over       over       Over       over                But not      Over     But not
                                                                                                                 Over       over                  over
--------------------------------------------------------------------------------------------------------------------------------------------------------
10..............................................................     $8,486    $15,852    $15,539    $25,991    $22,763    $36,688    $10,614    $17,891
15..............................................................     15,852     39,093     25,991     56,668     36,688     82,625     17,891     41,386
25..............................................................     39,093     84,081     56,668    123,629     82,625    147,439     41,386     74,492
28..............................................................     84,081    166,123    123,629    193,801    147,439    212,158     74,492    108,134
33..............................................................    166,123    341,553    193,801    354,536    212,158    352,775    108,134    179,237
35..............................................................    341,553  .........    354,536  .........    352,775  .........    179,237  .........
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0
3. Amend the heading of Appendix D to part 302-17 by removing ``2002'' 
and adding ``2003'' in its place.

[FR Doc. 04-5715 Filed 3-12-04; 8:45 am]
BILLING CODE 6820-14-P