[Federal Register: February 19, 2003 (Volume 68, Number 33)]
[Rules and Regulations]
[Page 7941-7944]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19fe03-23]
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GENERAL SERVICES ADMINISTRATION
41 CFR Chapter 302
[FTR Case 2003-302; FTR Amendment 2003-01]
RIN 3090-AH78
Federal Travel Regulation; Relocation Income Tax (RIT) Allowance
Tax Tables (2003 Update)
AGENCY: Office of Governmentwide Policy, General Services
Administration (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 2003 RIT allowance to be paid to
relocating Federal employees.
DATES: This final rule is effective January 1, 2003, and applies for
RIT allowance payments made on or after January 1, 2003.
FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035,
GS Building, Washington, DC, 20405, (202) 208-7312, for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Calvin L. Pittman, Office of Governmentwide
Policy, Travel Management Policy, at (202) 501-1538. Please cite FTR
case 2003-302, FTR Amendment 2003-01.
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 a RIT allowance are contained in the Federal Travel
Regulation (41 CFR part 302-17). The
[[Page 7942]]
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
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
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 the changes to
the FTR do 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 Chapter 302
Government employees, Income taxes, Relocation allowances and
entitlements, Transfers, Travel and transportation expenses.
Dated: February 6, 2003.
Stephen A. Perry,
Administrator of General Services.
For the reasons set forth in the preamble, under 5 U.S.C. 5701-
5709, GSA amends 41 CFR part 302-17 as set forth below:
CHAPTER 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 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 2002
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. 302-17.8(e)(1). This table is to be used for
employees whose Year 1 occurred during calendar year 2002.
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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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10.............................................. $8,137 $14,130 $14,743 $24,811 $20,219 $31,833 $11,770 $16,693
15.............................................. 14,130 37,040 24,811 53,556 31,833 67,914 16,693 33,839
27.............................................. 37,040 80,140 53,556 118,624 67,914 139,528 33,839 69,420
30.............................................. 80,140 158,281 118,624 184,826 139,528 201,236 69,420 105,672
35.............................................. 158,281 326,339 184,826 337,037 201,236 335,297 105,672 178,317
38.6............................................ 326,339 ........... 337,037 ........... 335,297 ........... 178,317 ...........
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Appendix B to Part 302-17--State Tax Tables For RIT Allowance
State Marginal Tax Rates by Earned Income Level--Tax Year 2002
The following table is to be used to determine the State
marginal tax rates for calculation of the RIT allowance as
prescribed in Sec. 302-17.8(e)(2). This table is to be used for
employees who received covered taxable reimbursements during
calendar year 2002.
Marginal Tax Rates (Stated in Percents) for the Earned Income Amounts Specified in Each Column 1, 2
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State (or district) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000 & over
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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...................................... 4 6 8 9.3
If single status \3\........................ 6 8 9.3 9.3
Colorado........................................ 4.63 4.63 4.63 4.63
Connecticut..................................... 4.5 4.5 4.5 4.5
Delaware........................................ 5.2 5.55 5.95 5.95
District of Columbia............................ 7 9 9 9
Florida......................................... 0 0 0 0
Georgia......................................... 6 6 6 6
Hawaii.......................................... 6.4 7.6 8.25 8.25
If single status \3\........................ 7.6 8.25 8.25 8.25
Idaho........................................... 7.4 7.8 7.8 7.8
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 6.45 6.45
If single status \3\........................ 6.25 6.45 6.45 6.45
Kentucky........................................ 6 6 6 6
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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........................................ 4.75 4.75 4.75 4.75
Massachusetts................................... 5.3 5.3 5.3 5.3
Michigan........................................ 4.1 4.1 4.1 4.1
Minnesota....................................... 5.35 7.05 7.05 7.85
If single status \3\........................ 7.05 7.05 7.85 7.85
Mississippi..................................... 5 5 5 5
Missouri........................................ 6 6 6 6
Montana......................................... 8 9 10 11
Nebraska........................................ 3.49 5.01 6.68 6.68
If single status \3\........................ 5.01 6.68 6.68 6.68
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 5.9 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.................................... 2.1 3.92 4.34 5.04
If single status \3\........................ 2.1 3.92 5.04 5.04
Ohio............................................ 3.715 4.457 5.201 6.9
Oklahoma........................................ 9 10 10 10
If single status \3\........................ 10 10 10 10
Oregon.......................................... 9 9 9 9
Pennsylvania.................................... 2.8 2.8 2.8 2.8
Rhode Island \4\................................ 25 25 25 25
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\..................................... 24 24 24 24
Virginia........................................ 5.75 5.75 5.75 5.75
Washington...................................... 0 0 0 0
West Virginia................................... 4 4.5 6 6.5
Wisconsin....................................... 6.15 6.5 6.5 6.75
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. 302-17.8(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 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. 302-17.8(e)(2)(iii).
\5\ The income tax rate for Vermont is 24 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. 302-17.8(e)(2)(iii).
Appendix C to Part 302-17--Federal Tax Tables for RIT Allowance--Year 2
Federal Marginal Tax Rates by Earned Income Level and Filing Status--
Tax Year 2003
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. 302-17.8(e)(1). This table is to be used for
employees whose Year 1 occurred during calendar years 1993, 1994,
1995, 1996, 1997, 1998, 1999, 2001, or 2002.
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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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10.............................................. $8,274 $14,314 $15,005 $25,136 $20,977 $32,559 $10,958 $16,536
15.............................................. 14,314 37,771 25,136 54,712 32,559 69,722 16,536 34,507
27.............................................. 37,771 81,890 54,712 122,788 69,722 142,842 34,507 70,442
30.............................................. 81,890 162,802 122,788 193,703 142,842 206,675 70,442 107,631
35.............................................. 162,802 334,763 193,703 350,138 206,675 343,919 107,631 181,753
38.6............................................ 334,763 ........... 350,138 ........... 343,919 ........... 181,753 ...........
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[[Page 7944]]
Appendix D to Part 302-17--Puerto Rico Tax Tables for RIT Allowance
Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 2002
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. 302-17.8(e)(4)(i).
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Marginal tax rate Single filing status Any other filing status
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Percent Over But not over Over But not over
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10.................................. ................. ................. ................. $25,000
15.................................. ................. $25,000 ................. .................
28.................................. $25,000 50,000 $25,000 50,000
33.................................. 50,000 ................. $50,000 .................
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[FR Doc. 03-3882 Filed 2-18-03; 8:45 am]
BILLING CODE 6820-24-P