[Federal Register Volume 66, Number 89 (Tuesday, May 8, 2001)]
[Rules and Regulations]
[Pages 23177-23180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11497]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 302-11

[FTR Amendment 96]
RIN 3090-AH40


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

[[Page 23178]]

Rico income tax brackets and rates. The Federal, State, and Puerto Rico 
tax tables contained in this rule are for calculating the 2001 RIT 
allowance to be paid to relocating Federal employees.

DATES: This final rule is effective January 1, 2001, and applies for 
RIT allowance payments made on or after January 1, 2001.

FOR FURTHER INFORMATION CONTACT: Calvin L. Pittman, 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 2001 on moving expense reimbursements.

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 the Federal Travel 
Regulation (41 CFR part 302-11). 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.

B. Executive Order 12866

    The General Services Administration (GSA) has determined that this 
final rule is not a significant regulatory action for the purposes of 
Executive Order 12866 of September 30, 1993.

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 this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which 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 302-11

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

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

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

    1. The authority citation for 41 CFR part 302-11 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. Appendixes A, B, C, and D to part 302-11 are amended by adding 
the following tables at the end of each appendix, respectively, to read 
as follows:

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 2000

    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 2000.

--------------------------------------------------------------------------------------------------------------------------------------------------------
               Marginal  tax rate                     Single  taxpayer         Heads 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
15..............................................       $7,417      $34,638      $13,375      $49,734      $17,421      $63,297       $8,603      $31,342
28..............................................       34,638       75,764       49,734      113,413       63,297      131,334       31,342       63,448
31..............................................       75,764      148,990      113,413      180,742      131,334      189,826       63,448       99,219
36..............................................      148,990      306,111      180,742      326,450      189,826      315,957       99,219      170,524
39.6............................................      306,111  ...........      326,450  ...........      315,957  ...........      170,524  ...........
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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 2000

    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 2000.

       Marginal Tax Rates (Stated in Percents) for the Earned Income Amounts Specified in Each Column.<SUP>1,</SUP> <SUP>2</SUP>
----------------------------------------------------------------------------------------------------------------
                                                                                                      $75,000 &
              State (or District)                $20,000-$24,999  $25,000-$49,999  $50,000-$74,999      Over
----------------------------------------------------------------------------------------------------------------
Alabama........................................           5                5                5              5
Alaska.........................................           0                0                0              0
Arizona........................................           2.87             3.2              3.74           5.04
Arkansas.......................................           4.5              7                7              7
  If single status \3\.........................           6                7                7              7
California.....................................           2                4                8              9.3
  If single status \3\.........................           4                8                8              9.3
Colorado.......................................           4.75             4.75             4.75           4.75
Connecticut....................................           4.5              4.5              4.5            4.5

[[Page 23179]]

 
Delaware.......................................           5.2              5.95             6.4            6.4
District of Columbia...........................           8                9.5              9.5            9.5
Florida........................................           0                0                0              0
Georgia........................................           6                6                6              6
Hawaii.........................................           7.2              8.2              8.75           8.75
  If single status \3\.........................           8.2              8.75             8.75           8.75
Idaho..........................................           7.8              8.2              8.2            8.2
Illinois.......................................           3                3                3              3
Indiana........................................           3.4              3.4              3.4            3.4
Iowa...........................................           6.48             7.92             8.98           8.98
  If single status \3\.........................           6.8              7.92             8.98           8.98
Kansas.........................................           3.5              6.25             6.25           6.45
  If single status \3\.........................           6.25             6.45             6.45           6.45
Kentucky.......................................           6                6                6              6
Louisiana......................................           2                4                4              6
  If single status \3\.........................           4                4                6              6
Maine..........................................           4.5              7                8.5            8.5
  If single status \3\.........................           7                8.5              8.5            8.5
Maryland.......................................           4.85             4.85             4.85           4.85
Massachusetts..................................           5.95             5.95             5.95           5.95
Michigan.......................................           4.4              4.4              4.4            4.4
Minnesota......................................           5.5              7.25             7.25           8
  If single status \3\.........................           7.25             7.25             8              8
Mississippi....................................           5                5                5              5
Missouri.......................................           6                6                6              6
Montana........................................           9               10               11             11
Nebraska.......................................           3.65             5.24             6.99           6.99
  If single status \3\.........................           5.24             6.99             6.99           6.99
Nevada.........................................           0                0                0              0
New Hampshire..................................           0                0                0              0
New Jersey.....................................           1.4              1.75             2.45           6.37
  If single status \3\.........................           1.4              3.5              5.525          6.37
New Mexico.....................................           3.2              6                7.1            8.2
  If single status \3\.........................           6                7.1              7.9            8.2
New York.......................................           4                5.25             6.85           6.85
  If single status \3\.........................           5.25             6.85             6.85           6.85
North Carolina.................................           6                7                7              7.75
North Dakota...................................           6.67             9.33            12             12
  If single status \3\.........................           8               10.67            12             12
Ohio...........................................           3.580            4.295            5.012          7.228
Oklahoma.......................................           5                6.75             6.75           6.75
  If single status \3\.........................           6.75             6.75             6.75           6.75
Oregon.........................................           9                9                9              9
Pennsylvania...................................           2.8              2.8              2.8            2.8
Rhode Island \4\...............................          26.5             26.5             26.5           26.5
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 \5\....................................          25               25               25             25
Virginia.......................................           5                5.75             5.75           5.75
Washington.....................................           0                0                0              0
West Virginia..................................           4                4.5              6              6.5
Wisconsin......................................           6.37             6.77             6.77           6.77
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 26.5 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).


[[Page 23180]]

Appendix C to Part 302-11--Federal Tax Tables For RIT Allowance--Year 2

* * * * *

Federal Marginal Tax Rates by Earned Income Level and Filing Statu--Tax 
Year 2001

    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 1991, 1992, 
1993, 1994, 1995, 1996, 1997, 1998, 1999 or 2000.

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               Marginal  tax rate                     Single  taxpayer         Heads 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
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15..............................................       $7,582      $35,363      $13,905      $51,016      $18,061      $65,011       $8,742      $32,028
28..............................................      $35,363      $77,472      $51,016     $116,612      $65,011     $133,818      $32,028      $65,470
31..............................................      $77,472     $154,524     $116,612     $180,660     $133,818     $193,566      $65,470      $99,363
36..............................................     $154,524     $317,548     $180,660     $324,522     $193,566     $323,455      $99,363     $169,100
39.6............................................     $317,548  ...........     $324,522  ...........     $323,455  ...........     $169,100  ...........
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Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance

* * * * *

Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2000

    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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                      Marginal tax rate                         Single filing status     Any other filing status
----------------------------------------------------------------------------------------------------------------
                                                                             But not                   But not
                           Percent                                Over         over         Over         over
----------------------------------------------------------------------------------------------------------------
11..........................................................  ...........  ...........  ...........      $25,000
16.5........................................................  ...........      $25,000  ...........  ...........
29.5........................................................      $25,000      $50,000      $25,000      $50,000
33..........................................................      $50,000  ...........      $50,000  ...........
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    Dated: April 30, 2001.
Thurman M. Davis, Sr.,
Acting Administrator of General Services.
[FR Doc. 01-11497 Filed 5-7-01; 8:45 am]
BILLING CODE 6820-34-M