[Federal Register Volume 73, Number 89 (Wednesday, May 7, 2008)]
[Rules and Regulations]
[Pages 25539-25542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10022]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-17

[FTR Amendment 2008-03; FTR Case 2008-302; Docket 2008-002, Sequence 1]
RIN 3090-AI48


Federal Travel Regulation; Relocation Income Tax (RIT) Allowance 
Tax Tables--2008 Update

AGENCY: Office of Governmentwide Policy, General Services 
Administration (GSA).

ACTION: Final rule.

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SUMMARY: This rule updates the Federal, State, and Puerto Rico tax 
tables for calculating the relocation income tax (RIT) allowance, 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 use in calculating the 2008 RIT allowance for tax 
year 2007 to be paid to relocating Federal employees.

DATES: Effective Date: This final rule is effective on May 7, 2008.
    Applicability date: January 1, 2008.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 
4035, GSA Building, Washington, DC 20405, telephone (202)208-7312, for 
information pertaining to status or publication schedules. For 
clarification of content, contact Ed Davis, Office of Governmentwide 
Policy, Travel Management Policy (MTT), Washington, DC 20405, telephone 
(202) 501-4755. Please cite FTR Amendment 2008-03, FTR case 2008-302.

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 the RIT allowance are contained in the Federal Travel 
Regulation (41 CFR part 302-17). GSA updates Federal, State, and Puerto 
Rico tax tables for calculating RIT allowance payments yearly to 
reflect changes in Federal, State, and Puerto Rico income tax brackets 
and rates.
    This amendment also provides a tax table necessary to compute the 
RIT allowance for employees who received reimbursement for relocation 
expenses in previous years.

B. Executive Order 12866

    This regulation is excepted from the definition of ``regulation'' 
or ``rule'' under Section 3(d)(3) of Executive Order 12866, Regulatory 
Planning and Review, dated September 30, 1993 and, therefore, was not 
subject to review under Section 6(b) of that Executive Order.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment as per the exemption specified in 5 
U.S.C. 553(a)(2); 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 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, Income taxes, Relocation allowances and 
entitlements, Transfers, Travel and transportation expenses.

    Dated: May 1, 2008.
David L. Bibb,
Acting Administrator of General Services.

0
For the reasons set forth in the preamble, under 5 U.S.C. 5738, GSA 
amends 41 CFR 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 is revised to read as 
follows:


[[Page 25540]]


    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, as 
amended, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586.

0
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 2007
   [Use the following table to compute the RIT allowance for Federal taxes, as prescribed in 302-17.8(e)(1), on Year 1 taxable reimbursements received
                                                               during calendar year 2007.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Marginal tax rate                         Single taxpayer        Head 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
10......................................................     $ 9,597     $18,107     $18,364     $30,153     $27,463     $42,942     $14,203     $21,913
15......................................................      18,107      44,461      30,153      64,200      42,942      94,016      21,913      46,764
25......................................................      44,461      95,997      64,200     142,780      94,016     167,442      46,764      84,076
28......................................................      95,997     191,453     142,780     225,385     167,442     243,961      84,076     124,354
33......................................................     191,453     390,566     225,385     405,567     243,961     404,547     124,354     205,412
35......................................................     390,566  ..........     405,567  ..........     404,547  ..........     205,412  ..........
--------------------------------------------------------------------------------------------------------------------------------------------------------

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

                         State Marginal Tax Rates by Earned Income Level--Tax Year 2007
   (Use the following table to compute the RIT allowance for State taxes, as prescribed in 302-17.8(e)(2), on
  taxable reimbursements received during calendar year 2007. The rates on the first line for each State are for
  employees who are married and file jointly; if there is a second line for a State, it displays the rates for
  employees who file as single. For more additional information, such as State rates for other filing statuses,
  please see the 2008 State Tax Handbook, pp. 259-274, available from CCH Inc., http://tax.cchgroup.com/Books/default#S.)
----------------------------------------------------------------------------------------------------------------
      Marginal tax rates (stated in percents) for the earned income amounts specified in each column.1 2 3
-----------------------------------------------------------------------------------------------------------------
                                                                                                 $75,000 & Over
         State (or district)           $20,000-$24,999    $25,000-$49,999    $50,000-$74,999          \4\
----------------------------------------------------------------------------------------------------------------
Alabama.............................               5.00               5.00               5.00               5.00
Alaska..............................               0.00               0.00               0.00               0.00
Arizona.............................               2.88               3.36               3.36               3.36
If single status, married filing                   2.88               3.36               4.24               4.24
 separately \5\.....................
Arkansas............................               6.00               7.00               7.00               7.00
California..........................               2.00               4.30               9.30               9.30
If single status, married filing                   2.00               9.30               9.30               9.30
 separately \5\.....................
Colorado............................               4.63               4.63               4.63               4.63
Connecticut.........................               5.00               5.00               5.00               5.00
Delaware............................               5.20               5.55               5.95               5.95
District of Columbia................               6.00               8.50               8.50               8.50
Florida.............................               0.00               0.00               0.00               0.00
Georgia.............................               6.00               6.00               6.00               6.00
Hawaii..............................               6.40               7.60               7.90               8.25
If single status, married filing                   7.60               7.90               8.25               8.25
 separately \5\.....................
Idaho...............................               7.40               7.80               7.80               7.80
If single status, married filing                   7.80               7.80               7.80               7.80
 separately \5\.....................
Illinois............................               3.00               3.00               3.00               3.00
Indiana.............................               3.40               3.40               3.40               3.40
Iowa................................               6.48               7.92               8.98               8.98
Kansas..............................               6.25               6.45               6.45               6.45
If single status, married filing                   6.25               6.45               6.45               6.45
 separately \5\.....................
Kentucky............................               5.80               5.80               5.80               6.00
Louisiana...........................               2.00               4.00               6.00               6.00
If single status, married filing                   4.00               6.00               6.00               6.00
 separately \5\.....................
Maine...............................               7.00               8.50               8.50               8.50
If single status, married filing                   8.50               8.50               8.50               8.50
 separately \5\.....................
Maryland............................               4.75               4.75               4.75               4.75
Massachusetts.......................               5.30               5.30               5.30               5.30
Michigan............................               3.90               3.90               3.90               3.90
Michigan on or after October 1, 2007               4.35               4.35               4.35               4.35
Minnesota...........................               5.35               7.05               7.05               7.05
If single status, married filing                   7.05               7.05               7.85               7.85
 separately \5\.....................
Mississippi.........................               5.00               5.00               5.00               5.00
Missouri............................               6.00               6.00               6.00               6.00
Montana.............................               6.90               6.90               6.90               6.90
Nebraska............................               3.57               6.84               6.84               6.84
If single status, married filing                   5.12               6.84               6.84               6.84
 separately \5\.....................
Nevada..............................               0.00               0.00               0.00               0.00
New Hampshire.......................               0.00               0.00               0.00               0.00

[[Page 25541]]

 
New Jersey..........................               1.75               1.75               3.50              5.525
If single status, married filing                   1.75              5.525              5.525              6.370
 separately \5\.....................
New Mexico..........................               5.30               5.30               5.30               5.30
New York............................               5.25               6.85               6.85               6.85
If single status, married filing                   6.85               6.85               6.85               6.85
 separately \5\.....................
North Carolina......................               7.00               7.00               7.00               7.00
If single status, married filing                   7.00               7.00               7.75               7.75
 separately \5\.....................
North Dakota........................               2.10               2.10               3.92               3.92
If single status, married filing                   2.10               3.92               3.92               4.34
 separately \5\.....................
Ohio................................              3.895              4.546              4.546              5.194
Oklahoma............................              5.650              5.650              5.650              5.650
Oregon..............................               9.00               9.00               9.00               9.00
Pennsylvania........................               3.07               3.07               3.07               3.07
Rhode Island \6\....................               3.75               3.75               7.00               7.00
If single status, married filing                   3.75               7.00               7.00               7.75
 separately \5\.....................
South Carolina......................               7.00               7.00               7.00               7.00
South Dakota........................               0.00               0.00               0.00               0.00
Tennessee...........................               0.00               0.00               0.00               0.00
Texas...............................               0.00               0.00               0.00               0.00
Utah................................               6.98               6.98               6.98               6.98
Vermont.............................               3.60               7.20               7.20               7.20
If single status, married filing                   3.60               7.20               8.50               8.50
 separately \5\.....................
Virginia............................               5.75               5.75               5.75               5.75
Washington..........................               0.00               0.00               0.00               0.00
West Virginia.......................               4.00               6.00               6.50               6.50
Wisconsin...........................               6.50               6.50               6.50               6.50
Wyoming.............................               0.00               0.00               0.00              0.00
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[The above table/column 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\ If two or more marginal tax rates of a State overlap an income bracket shown in this table, then the highest
  of the two or more State marginal tax rates is shown for that entire income bracket. For more specific
  information, see the 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://tax.cchgroup.com/Books/default#S.
 
\4\ This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please
  consult actual tax tables. See 2008 State Tax Handbook, pp. 259-274, CCH, Inc., http://tax.cchgroup.com/Books/default#S.
\5\ This rate applies only to those individuals certifying that they will file under a single or married filing
  separately status within the states where they will pay income taxes.
\6\ The income tax rate for Rhode Island is 25 percent of Federal income tax rates, including capital gains
  rates and any other special rates for other types of income. 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). Effective for
  the 2007 tax year, taxpayers may elect to compute income tax liability based on a graduated rate schedule or
  an alternative flat tax equal to 7.5%.

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 2007
   [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 301-
 17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006 or
                                                                         2007.]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Marginal tax rate                         Single taxpayer        Head 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
10......................................................      $8,739      16,560     $16,538     $27,374     $24,163     $38,534     $12,036     $19,194
 15.....................................................      16,560      41,041      27,374      59,526      38,534      86,182      19,194      43,330
 25.....................................................      41,041      88,541      59,526     128,605      86,182     154,786      43,330      79,441
 28.....................................................      88,541     175,222     128,605     203,511     154,786     224,818      79,441     114,716
 33.....................................................     175,222     360,212     203,511     375,305     224,818     374,173     114,716     188,184

[[Page 25542]]

 
 35.....................................................     360,212  ..........     375,305  ..........     374,173  ..........     188,184  ..........
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Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance

  Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2007
  (Use the following table to compute the RIT allowance for Puerto Rico
  taxes, as prescribed in 302-17.8(e)(4)(i), on taxable reimbursements
                  received during calendar year 2007.)
------------------------------------------------------------------------
                                         For married person living with
                                       spouse and filing jointly, married
                                         person not living with spouse,
                                       single person, or head of household
          Marginal tax rate          --------------------------------------
                                                                       But
                                          Percent          Over        not
                                                                      over
-------------------------------------------------------------------- ------
 7%.................................          $2,000          17,000
 14% + 1,190........................          17,000          30,000
 25% + 3,010........................          30,000          50,000
 33% + 8,010........................          50,000
------------------------------------------------------------------------


------------------------------------------------------------------------
                                         For married person living with
                                          spouse and filing separately
                                     --------------------------------------
          Marginal tax rate                                            But
                                          Percent          Over        not
                                                                      over
-------------------------------------------------------------------- ------
 7%.................................          $1,000           8,500
 14% + $595.........................           8,500          15,000
 25% + 1,505........................          15,000
                                              25,000
 33% + 4,005........................          25,000
------------------------------------------------------------------------
Source: Individual Income Tax Return 2007--Long Form; Commonwealth of
  Puerto Rico, Department of the Treasury,P.O. Box 9022501, San Juan, PR
  00902-2501;http://www.hacienda.gobierno.pr/.


 [FR Doc. E8-10022 Filed 5-6-08; 8:45 am]
BILLING CODE 6820-14-P