[Federal Register Volume 70, Number 49 (Tuesday, March 15, 2005)]
[Rules and Regulations]
[Pages 12598-12600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5000]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-17

[FTR Amendment 2005-02; FTR Case 2005-302]
RIN 3090-AI05


Federal Travel Regulation; Relocation Income Tax (RIT) Allowance 
Tax Tables--2005 Update

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 2005 RIT allowance to be paid to 
relocating Federal employees.

DATES: Effective Date: January 1, 2005.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 
4035, GS Building, Washington, DC 20405, (202) 208-7312, for 
information pertaining to status or publication schedules. For 
clarification of content, contact Ms. Sallie Sherertz, Office of 
Governmentwide Policy, Travel Management Policy Division, at (202) 219-
3455. Please cite FTR Amendment 2005-02, FTR case 2005-302.

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 FTR 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.
    This amendment provides the tax tables necessary to compute the 
relocation income tax (RIT) allowance for employees who are taxed in 
2004 on moving expense reimbursements.

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, Part 302-17

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

    Dated: March 1, 2005.
Stephen A. Perry,
Administrator of General Services.


0
For the reasons set forth in the preamble, under 5 U.S.C. 5701-5709, 
GSA amends 41 CFR chapter 302, part 302-17 as set forth below:

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 2004
   [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 in which their Year 1 occurred during calendar year 2004.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Single taxpayer          Head of household      Married filing jointly        Married filing
                                                 ------------------------------------------------------------------------------        separately
            Marginal tax rate percent                                                                                          -------------------------
                                                      Over       But not        Over       But not        Over       But not                   But not
                                                                   over                      over                      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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[[Page 12599]]


                          Appendix B to Part 302-17--State Tax Tables for RIT Allowance
                         State Marginal Tax Rates by Earned Income Level--Tax Year 2004
     [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 2004. (The rates shown below are married filing jointly.) If the
 state has a specific single rate, it is shown. If an employee is in a different filing status, please see 2005
                                          State Tax Handbook, CCH Inc.]
----------------------------------------------------------------------------------------------------------------
       Marginal tax rates (stated in percents) for the earned income amounts specified in each column. 1 2
-----------------------------------------------------------------------------------------------------------------
     State (or district)        $20,000-$24,999      $25,000-$49,999      $50,000-$74,999     $75,000 & Over \3\
----------------------------------------------------------------------------------------------------------------
Alabama.....................                5                    5                    5                    5
Alaska......................                0                    0                    0                    0
Arizona.....................                3.20                 3.20                 3.74                 3.74
    If single status \4\....                3.20                 3.74                 4.72                 4.72
Arkansas....................                6                    7                    7                    7
California..................                2                    4                    6                    9.3
    If single status \4\....                4                    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                  7.2                  7.6                  8.25
    If single status \4\....                7.6                  7.9                  8.25                 8.25
Idaho.......................                7.4                  7.4                  7.8                  7.8
    If single status \4\....                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                    4                    6                    6
    If single status \4\....                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....................                4.75                 4.75                 4.75                 4.75
Massachusetts...............                5.3                  5.3                  5.3                  5.3
Michigan....................                3.9                  3.9                  3.9                  3.9
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.....................                8                    9                   10                   11
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                 5.525
    If single status \4\....                1.75                 3.5                  5.525                6.37
New Mexico..................                4.7                  6                    6.8                  6.8
    If single status \4\....                6                    6.8                  6.8                  6.8
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
    If single status \4\....                7                    7                    7.75                 7.75
North Dakota................                2.1                  2.1                  3.92                 3.92
    If single status \4\....                2.1                  3.92                 3.92                 4.34
Ohio........................                4.457                4.457                5.201                5.943
Oklahoma....................                6.65                 6.65                 6.65                 6.65
Oregon......................                9                    9                    9                    9
Pennsylvania................                3.07                 3.07                 3.07                 3.07
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.....................                3.6                  3.6                  7.2                  7.20
    If single status \4\....                3.6                  7.2                  8.5                  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

[[Page 12600]]

 
Wyoming.....................                0                    0                    0                   0
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(The above table headings established by IRS.)
\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, and for filing statuses other than those above, please
  consult actual tax tables. (See 2005 State Tax Handbook, CCH, Inc.)
\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.
\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).


                                         Appendix C to Part 302-17--Federal Tax Tables For RIT Allowance--Year 2
            Estimated Ranges of Wage and Salary Income Corresponding to Federal Statutory Marginal Income Tax Rates by Filing Status in 2005
   [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 1995, 1996, 1997, 1998, 1999, 2001, 2002, 2003, or
                                                                         2004.]
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                                                       Single taxpayer          Head of household      Married filing jointly        Married filing
                                                 ------------------------------------------------------------------------------        separately
            Marginal tax rate percent                                                                                          -------------------------
                                                      Over       But not        Over       But not        Over       But not                   But not
                                                                   over                      over                      over         Over         over
--------------------------------------------------------------------------------------------------------------------------------------------------------
10..............................................       $8,712      $16,201      $15,989      $26,630      $23,519      $37,568      $10,897      $18,242
15..............................................       16,201       39,898       26,630       58,079       37,568       84,110       18,242       42,410
25..............................................       39,898       85,748       58,079      125,252       84,110      150,301       42,410       76,165
28..............................................       85,748      169,230      125,252      195,589      150,301      216,710       76,165      109,970
33..............................................      169,230      348,318      195,589      360,009      216,710      360,571      109,970      182,419
35..............................................      348,318  ...........      360,009  ...........      360,571  ...........      182,419  ...........
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Appendix D to Part 302-17--[Amended]

0
3. Amend the heading of Appendix D to part 302-17 by removing ``2003'' 
and adding ``2004'' in its place.

[FR Doc. 05-5000 Filed 3-14-05; 8:45 am]
BILLING CODE 6820-14-P