[Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
[Rules and Regulations]
[Pages 8173-8176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4557]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 57]

RIN 3090-AG28


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

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 1997 RIT allowance to be paid to 
relocating Federal employees.

DATES: This final rule is effective January 1, 1997, and applies for 
RIT allowance payments made on or after January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Jane Groat, Office of Governmentwide 
Policy (MTT), Washington, DC 20405, telephone 202-501-1538.

SUPPLEMENTARY INFORMATION: This amendment provides the tax tables 
necessary to compute the relocation income tax (RIT) allowance for 
employees who are taxed in 1997 on moving expense reimbursements.
    The General Services Administration has determined that this rule 
is not a significant regulatory action for the purposes of Executive 
Order 12866 of September 30, 1993. This final rule is not required to 
be published in the Federal Register for notice and comment. Therefore, 
the Regulatory Flexibility Act does not apply. This rule also is 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 302-11

    Government employees, Income taxes, Relocation allowances and 
entitlements, Transfers.

    For the reasons set out in the preamble, 41 CFR part 302-11 is 
amended to read as follows:

PART 302-11--RELOCATION INCOME TAX (RIT) ALLOWANCE

    1. The authority citation for part 302-11 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).


[[Page 8174]]


    2. Appendixes A, B, C, and D to part 302-11 are amended by adding 
the following tables at the end of each appendix, respectively:

Appendix A to Part 302-11--Federal Tax Tables for RIT Allowance
* * * * *
Federal Marginal Tax Rates by Earned Income Level and Filing Status--
Tax Year 1996
    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. 302-11.8(e)(1). This table is to be used for employees whose 
Year 1 occurred during calendar year 1996.

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                                                       Single taxpayer         Heads of household      Married filing jointly/       Married filing     
                                                 ----------------------------------------------------   qualifying widows and          separately       
                                                                                                              widowers         -------------------------
           Marginal tax rate (percent)                           But not                   But not   --------------------------                         
                                                      Over         over         Over         over                    But not        Over       But not  
                                                                                                          Over         over                      over   
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $6,885      $31,807      $12,295      $45,572      $17,027      $59,055       $8,229      $29,600
28..............................................       31,807       70,867       45,572      105,805       59,055      123,190       29,600       61,245
31..............................................       70,867      144,170      105,805      168,990      123,190      179,414       61,245       90,611
36..............................................      144,170      292,883      168,990      301,968      179,414      295,681       90,611      150,779
39.6............................................      292,883  ...........      301,968  ...........      295,681  ...........      150,779  ...........
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Appendix B to Part 302-11--State Tax Tables for RIT Allowance
* * * * *
State Marginal Tax Rates by Earned Income Level--Tax Year 1996
    The following table is to be used to determine the State marginal 
tax rates for calculation of the RIT allowance as prescribed in 
Sec. 302-11.8(e)(2). This table is to be used for employees who 
received covered taxable reimbursements during calendar year 1996.

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                                         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 and over
----------------------------------------------------------------------------------------------------------------
 1. Alabama.........................              5                  5                  5                  5    
 2. Alaska..........................              0                  0                  0                  0    
 3. Arizona.........................              3                  3.5                4.2                5.6  
 4. Arkansas........................              4.5                7                  7                  7    
    If single status \3\............              6                  7                  7                  7    
 5. California......................              2                  4                  8                 11    
    If single status \3\............              4                  9.3                9.3               11    
 6. Colorado........................              5                  5                  5                  5    
 7. Connecticut.....................              4.5                4.5                4.5                4.5  
 8. Delaware........................              6                  7.1                7.1                7.1  
 9. District of Columbia............              8                  9.5                9.5                9.5  
10. Florida.........................              0                  0                  0                  0    
11. Georgia.........................              6                  6                  6                  6    
12. Hawaii..........................              8                  9.5               10                 10    
    If single status \3\............              9.5               10                 10                 10    
13. Idaho...........................              7.8                8.2                8.2                8.2  
14. Illinois........................              3                  3                  3                  3    
15. Indiana.........................              3.4                3.4                3.4                3.4  
16. Iowa............................              6.8                7.55               9.98               9.98 
    If single status \3\............              7.2                8.8                9.98               9.98 
17. Kansas..........................              3.5                6.25               6.25               6.45 
    If single status \3\............              4.4                7.75               7.75               7.75 
18. Kentucky........................              6                  6                  6                  6    
19. Louisiana.......................              2                  4                  4                  6    
    If single status \3\............              4                  4                  6                  6    
20. Maine...........................              4.5                7                  8.5                8.5  
    If single status \3\............              8.5                8.5                8.5                8.5  
21. Maryland........................              5                  5                  5                  5    
22. Massachusetts...................              5.95               5.95               5.95               5.95 
23. Michigan........................              4.4                4.4                4.4                4.4  
24. Minnesota.......................              6                  8                  8                  8.5  
    If single status \3\............              8                  8                  8.5                8.5  
25. Mississippi.....................              5                  5                  5                  5    
26. Missouri........................              6                  6                  6                  6    

[[Page 8175]]

                                                                                                                
27. Montana.........................              6                  9                 10                 11    
28. Nebraska........................              3.65               5.24               6.99               6.99 
    If single status \3\............              5.24               6.99               6.99               6.99 
29. Nevada..........................              0                  0                  0                  0    
30. New Hampshire...................              0                  0                  0                  0    
31. New Jersey......................              1.4                1.75               2.45               6.37 
    If single status \3\............              1.4                3.45               5.25               6.37 
32. New Mexico......................              3.2                6                  7.1                8.5  
    If single status \3\............              6                  7.1                7.9                8.5  
33. New York........................              5                  7.125              7.125              7.125
    If single status \3\............              7.125              7.125              7.125              7.125
34. North Carolina..................              6                  7                  7                  7.75 
35. North Dakota....................              6.67               9.33              12                 12    
    If single status \3\............              8                 10.67              12                 12    
36. Ohio............................              2.972              4.457              5.201              7.5  
37. Oklahoma........................              4                  7                  7                  7    
    If single status \3\............              7                  7                  7                  7    
38. Oregon..........................              9                  9                  9                  9    
39. Pennsylvania....................              2.8                2.8                2.8                2.8  
                                                                                                                
40. Rhode Island....................             27.5               27.5               27.5               27.5  
                                                                   (See footnote 4)                             
41. South Carolina..................              7                  7                  7                  7    
42. South Dakota....................              0                  0                  0                  0    
43. Tennessee.......................              0                  0                  0                  0    
44. Texas...........................              0                  0                  0                  0    
45. Utah............................              7                  7                  7                  7    
                                                                                                                
46. Vermont.........................                               (See footnote 5)                             
47. Virginia........................              5                  5.75               5.75               5.75 
48. Washington......................              0                  0                  0                  0    
49. West Virginia...................              4                  4.5                6                  6.5  
50. Wisconsin.......................              6.55               6.93               6.93               6.93 
51. 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.  302-11.8(e)(2)(ii).                     
\3\ 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.                                                                                                   
\4\ The income tax rate for Rhode Island is 27.5 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.  302-11.8(e)(2)(iii).                                                                                 
\5\ The income tax rate for Vermont 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-
  11.8(e)(2)(iii).                                                                                              

        
Appendix C to Part 302-11--Federal Tax Tables for RIT Allowance--Year 2
* * * * *
Federal Marginal Tax Rates by Earned Income Level and Filing Status--
Tax Year 1997
    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. 302-11.8(e)(1). This table is to be used for employees whose 
Year 1 occurred during calendar years 1987, 1988, 1989, 1990, 1991, 
1992, 1993, 1994, 1995, or 1996.

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                                                       Single taxpayer         Heads of household      Married filing jointly/       Married filing     
                                                 ----------------------------------------------------   qualifying widows and          separately       
                                                                                                              widowers         -------------------------
           Marginal tax rate (percent)                           But not                   But not   --------------------------                         
                                                      Over         over         Over         over                    But not        Over       But not  
                                                                                                          Over         over                      over   
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,067      $32,674      $12,963      $46,966      $16,798      $59,856       $8,702      $29,669
28..............................................       32,674       71,647       46,966      104,632       59,856      123,931       29,669       62,023
31..............................................       71,647      141,006      104,632      161,381      123,931      180,221       62,023       92,072
36..............................................      141,006      288,900      161,381      293,567      180,221      299,695       92,072      152,835
39.6............................................      288,900  ...........      293,567  ...........      299,695  ...........      152,835  ...........
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[[Page 8176]]

        
        
        
        
        
        
        
        
        
Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance
* * * * *
Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 1996
    The following table is to be used to determine the Puerto Rico 
marginal tax rate for computation of the RIT allowance as prescribed in 
Sec. 302-11.8(e)(4)(i).

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                                                                Single filing status     Any other filing status
                                                             ---------------------------------------------------
                 Marginal tax rate (percent)                                 But not                   But not  
                                                                  Over         over         Over         over   
----------------------------------------------------------------------------------------------------------------
12..........................................................  ...........  ...........  ...........      $25,000
18..........................................................  ...........      $25,000  ...........  ...........
31..........................................................      $25,000      $50,000      $25,000      $50,000
33..........................................................      $50,000  ...........      $50,000  ...........
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    Dated: February 18, 1997.
David J. Barram,
Acting Administrator of General Services.
[FR Doc 97-4557 Filed 2-21-97;8:45am]
BILLING CODE 6820-34-F