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 General Services Administration 41 CFR Part 302-17
[FTR Amendment 2007-02; FTR Case 2007-302; Docket 2007-0002, Sequence 2]
RIN 3090-AI35
 AGENCY: Office of Governmentwide Policy, GSA.
 ACTION: Final rule.
 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 2007 RIT allowance to be paid to relocating Federal employees.
 DATES: *Effective Date:*
                         This final rule is effective April 9, 2007. *Applicability date:*
                         This final rule provides tax information for filing 2006 Federal and State income taxes.
 FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room 4035, GSA Building, Washington, DC 20405, telephone (202) 501-4755, 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) 208-7638. Please cite FTR Amendment 2007-02, FTR case 2007-302.


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 2006. 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: March 23, 2007. Lurita Doan, Administrator of General Services.
 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
 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 Appendices 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 2006
[Use the following table to compute the RIT allowance for Federal taxes, as prescribed in § 302-17.8(e)(1), on Year 1 marginal taxable reimbursements received during calendar year 2006]
Marginal tax rate
Single taxpayer
Head of household
Married filing jointly/qualifying widows & widowers
Married filing separatelyPercent
Over
But not over
Over
But not over
Over
But not over
Over
But not over10
$8,739
$16,560
$16,538
$27,374
$24,163
$38,534
$12,036
$19,19415
16,560
41,041
27,374
59,526
38,534
86,182
19,194
43,33025
41,041
88,541
59,526
128,605
86,182
154,786
43,330
79,44128
88,541
175,222
128,605
203,511
154,786
224,818
79,441
114,71633
175,222
360,212
203,511
375,305
224,818
374,173
114,716
188,18435
360,212

375,305

374,173

188,184
 Appendix B to Part 302-17—State Tax Tables for RIT Allowance
                            ( print page 17411) State Marginal Tax Rates by Earned Income Level—Tax Year 2006
[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 2006. 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 2007 State Tax Handbook, pp. 255-270, available from CCH Inc., 
                                *http://tax.cchgroup.com/​Books/​default.*]
Marginal tax rates (
                                    *stated in percents*
                                    ) for the earned income amounts specified in each column.1
                                     2
                                     3State (or District)
$20,000-$24,999
$25,000-$49,999
$50,000-$74,999
$75,000 & over 4Alabama
5.00
5.00
5.00
5.00Alaska
0.00
0.00
0.00
0.00Arizona
3.04
3.04
3.55
3.55If single status, married filing separately 5
3.04
3.55
4.48
4.48Arkansas
6.00
7.00
7.00
7.00California
2.00
6.00
9.30
9.30If single status, married filing separately 5
6.00
8.00
9.30
9.30Colorado
4.63
4.63
4.63
4.63Connecticut
5.00
5.00
5.00
5.00Delaware
5.20
5.55
5.95
5.95District of Columbia
7.00
7.00
8.70
8.70Florida
0.00
0.00
0.00
0.00Georgia
6.00
6.00
6.00
6.00Hawaii
6.40
7.60
7.90
8.25If single status, married filing separately 5
7.60
7.90
8.25
8.25Idaho
7.40
7.80
7.80
7.80If single status, married filing separately 5
7.80
7.80
7.80
7.80Illinois
3.00
3.00
3.00
3.00Indiana
3.40
3.40
3.40
3.40Iowa
6.48
7.92
8.98
8.98Kansas
6.25
6.45
6.45
6.45Kentucky
5.80
5.80
5.80
6.00Louisiana
2.00
4.00
6.00
6.00If single status, married filing separately 5
4.00
6.00
6.00
6.00Maine
7.00
8.50
8.50
8.50If single status, married filing separately 5
8.50
8.50
8.50
8.50Maryland
4.75
4.75
4.75
4.75Massachusetts
5.30
5.30
5.30
5.30Michigan
3.90
3.90
3.90
3.90Minnesota
5.35
7.05
7.05
7.05If single status, married filing separately 5
7.05
7.05
7.85
7.85Mississippi
5.00
5.00
5.00
5.00Missouri
6.00
6.00
6.00
6.00Montana
6.90
6.90
6.90
6.90Nebraska
3.57
6.84
6.84
6.84If single status, married filing separately 5
5.12
6.84
6.84
6.84Nevada
0.00
0.00
0.00
0.00New Hampshire
0.00
0.00
0.00
0.00New Jersey
1.75
1.75
3.50
5.525If single status, married filing separately 5
1.75
5.525
5.525
6.370New Mexico
5.30
5.30
5.30
5.30New York
5.25
6.85
6.85
6.85If single status, married filing separately 5
6.85
6.85
6.85
6.85North Carolina
7.00
7.00
7.00
7.00If single status, married filing separately 5
7.00
7.00
7.75
7.75North Dakota
2.10
2.10
3.92
3.92If single status, married filing separately 5
2.10
3.92
4.34
4.34Ohio
4.083
4.083
4.764
5.444Oklahoma
6.25
6.25
6.25
6.25Oregon
9.00
9.00
9.00
9.00Pennsylvania
3.07
3.07
3.07
3.07Rhode Island 6
3.75
7.00
7.00
7.00If single status, married filing separately 5
3.75
7.00
7.00
7.75South Carolina
7.00
7.00
7.00
7.00South Dakota
0.00
0.00
0.00
0.00Tennessee
0.00
0.00
0.00
0.00Texas
0.00
0.00
0.00
0.00Utah
6.98
6.98
6.98
6.98Vermont
3.60
3.60
7.20
7.20If single status, married filing separately 5
3.60
7.20
8.50
8.50Virginia
5.75
5.75
5.75
5.75Washington
0.00
0.00
0.00
0.00West Virginia
4.00
6.00
6.50
6.50Wisconsin
6.50
6.50
6.50
6.50( print page 17412)Wyoming
0.00
0.00
0.00
0.00[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 § 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 2007 State Tax Handbook, pp. 255-270, CCH, Inc., 
                                *http://tax.cchgroup.com/​Books/​default.*4
                                 This is an estimate. For earnings over $100,000, and for filing statuses other than those above, please consult actual tax tables. See 2007 State Tax Handbook, pp. 255-270, CCH, Inc., 
                                *http://tax.cchgroup.com/​Books/​default.*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 another 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 § 302-17.8(e)(2)(iii). Effective for the 2006 tax year, tax payers may elect to compute income tax liability based on a graduated rate schedule or an alternative flat tax equal to 8%.
 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 § 302-17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar years 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, or 2006]
Marginal tax rate
Single taxpayer
Head of household
Married filing jointly/qualifying widows & widowers
Married filing separatelyPercent
Over
But not over
Over
But not over
Over
But not over
Over
But not over10
$9,287
$17,545
$18,060
$29,399
$26,173
$41,393
$14,049
$21,44115
17,545
43,394
29,399
62,576
41,393
91,201
21,441
45,38825
43,394
93,101
62,576
138,856
91,201
162,117
45,388
81,61628
93,101
183,867
138,856
216,022
162,117
233,656
81,616
119,66033
183,867
376,616
216,022
389,045
233,656
387,765
119,660
197,48335
376,616

389,045

387,765

197,483
 Appendix D to Part 302-17—Puerto Rico Tax Tables for RIT Allowance Puerto Rico Marginal Tax Rates by Earned Income Level—Tax Year 2006
[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 2006.]
Marginal tax rate
For married person living with spouse and filing jointly, married person not living with spouse, single person, or head of household
For married person living with spouse and filing separatelyOver
But not over
Over
But not over10
$2,000
$17,000
$1,000
$8,50015
17,000
30,000
8,500
15,00028
30,000
50,000
15,000
25,00033
50,000

25,000Source: 
                                *Individual Income Tax Return 2006—Long Form;*
                                 Commonwealth of Puerto Rico, Department of the Treasury, P.O. Box 9022501, San Juan, PR 00902-2501; 
                                *http://www.hacienda.gobierno.pr/​planillas_​y_​formularios/​formularios.html.*


[FR Doc. E7-6729 Filed 4-6-07; 8:45 am] BILLING CODE 6820-14-P