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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
 AGENCY: Office of Governmentwide Policy, General Services Administration (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 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.
 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 is revised to read as follows: ( print 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. 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/qualifying 
                                 widows & widowers
Married
                                 filing separatelyPercent
Over
But not over
Over
But not over
Over
But not over
Over
But not over10
$ 9,597
$18,107
$18,364
$30,153
$27,463
$42,942
$14,203
$21,91315
18,107
44,461
30,153
64,200
42,942
94,016
21,913
46,76425
44,461
95,997
64,200
142,780
94,016
167,442
46,764
84,07628
95,997
191,453
142,780
225,385
167,442
243,961
84,076
124,35433
191,453
390,566
225,385
405,567
243,961
404,547
124,354
205,41235
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 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
2.88
3.36
3.36
3.36If single status, married filing separately 5
2.88
3.36
4.24
4.24Arkansas
6.00
7.00
7.00
7.00California
2.00
4.30
9.30
9.30If single status, married filing separately 5
2.00
9.30
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
6.00
8.50
8.50
8.50Florida
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
6.45If single status, married filing separately 5
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
3.90Michigan on or after October 1, 2007
4.35
4.35
4.35
4.35Minnesota
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
0.00( print page 25541)New 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
3.92
4.34Ohio
3.895
4.546
4.546
5.194Oklahoma
5.650
5.650
5.650
5.650Oregon
9.00
9.00
9.00
9.00Pennsylvania
3.07
3.07
3.07
3.07Rhode Island 6
3.75
3.75
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
7.20
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
6.50Wyoming
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 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 § 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/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
188,184( print page 25542)35
360,212

375,305

374,173

188,184
 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.)
Marginal tax rate
For married person living with spouse and filing jointly, married person not living with spouse, single person, or head of householdPercent
Over7%
$2,000
17,00014% + 1,190
17,000
30,00025% + 3,010
30,000
50,00033% + 8,010
50,000
 Marginal tax rate
For married person living with spouse and filing separatelyPercent
Over7%
$1,000
8,50014% + $595
8,500
15,00025% + 1,505
15,000
                                 25,00033% + 4,005
25,000Source: 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