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

This amendment provides the tax tables necessary to compute the RIT allowance for employees who are taxed in 1999 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 and storage expense reimbursements. Policies and procedures for the calculation and payment of a RIT allowance is contained in the FTR (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 the proposed revisions do 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. 501 et seq.

E. Small Business Regulatory Enforcement Reform 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.

For the reasons set forth 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 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:

Appendix A to Part 302-11--Federal Tax Tables For RIT Allowance

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Federal Marginal Tax Rates by Earned Income Level and Filing Status--Tax Year 1998 [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 1998.] -------------------------------------------------------------------------------------------------------------------------------------------------------- Marginal tax rate Single taxpayer Heads of household Married filing jointly/ Married Filing --------------------------------------------------------------------------------------------------------- qualifying widows and Separately widowers ----------------------- But not But not ------------------------ Percent Over over Over over But not Over But not Over over over -------------------------------------------------------------------------------------------------------------------------------------------------------- 15...................................................... $7,229 $33,530 $12,964 $48,232 $16,858 $61,069 $8,685 $30,351 28...................................................... 33,530 73,135 48,232 109,311 61,069 126,880 30,351 63,863 31...................................................... 73,135 145,648 109,311 177,378 126,880 184,945 63,863 92,550 36...................................................... 145,648 299,410 177,378 321,683 184,945 308,061 92,550 152,715 39.6.................................................... 299,410 321,683 308,061 152,715 --------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix B to Part 302-11--State Tax Tables For RIT Allowance

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State Marginal Tax Rates by Earned Income Level--Tax Year 1998 [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 1998.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 & Over -------------------------------------------------------------------------------------------------------------------------------------------------------- Alabama......................................................... 5 5 5 5 Alaska.......................................................... 0 0 0 0 Arizona......................................................... 2.9 3.3 3.9 5.17 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 9.3 9.3 9.3 Colorado........................................................ 5 5 5 5 Connecticut..................................................... 3 4.5 4.5 4.5 If single status 3.............................................. 4.5 4.5 4.5 4.5 Delaware........................................................ 5.8 6.9 6.9 6.9 District of Columbia............................................ 8 9.5 9.5 9.5 Florida......................................................... 0 0 0 0 Georgia......................................................... 6 6 6 6 Hawaii.......................................................... 8 9.5 10 10 If single status 3.............................................. 9.5 10 10 10 Idaho........................................................... 7.8 8.2 8.2 8.2 Illinois........................................................ 3 3 3 3 Indiana......................................................... 3.4 3.4 3.4 3.4 Iowa............................................................ 6.8 7.55 9.98 9.98 If single status 3.............................................. 7.2 8.8 9.98 9.98 Kansas.......................................................... 3.5 6.25 6.25 6.45 If single status 3.............................................. 4.1 7.75 7.75 7.75 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.............................................. 8.5 8.5 8.5 8.5 Maryland........................................................ 5 5 5 5 Massachusetts................................................... 5.95 5.95 5.95 5.95 Michigan........................................................ 4.4 4.4 4.4 4.4 Minnesota....................................................... 8 8 8 8.5 If single status 3.............................................. 8 8.5 8.5 8.5 Mississippi..................................................... 5 5 5 5 Missouri........................................................ 6 6 6 6 Montana......................................................... 6 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 3.50 5.525 6.37 New Mexico...................................................... 3.2 6 7.1 8.5 If single status 3.............................................. 6 7.1 7.9 8.5 New York........................................................ 4 6 7.125 7.125

If single status 3.............................................. 6 7.125 7.125 7.125 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............................................................ 2.853 4.279 4.993 7.201 Oklahoma........................................................ 4 7 7 7 If single status 3.............................................. 7 7 7 7 Oregon.......................................................... 9 9 9 9 Pennsylvania.................................................... 2.8 2.8 2.8 2.8 Rhode Island 4.................................................. 27 27 27 27 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....................................................... 6.55 6.93 6.93 6.93 Wyoming......................................................... 0 0 0 0 -------------------------------------------------------------------------------------------------------------------------------------------------------- \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 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

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Federal Marginal Tax Rates by Earned Income Level and Filing Status--Tax Year 1999 [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 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, or 1998.] -------------------------------------------------------------------------------------------------------------------------------------------------------- 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...................................................... $7,288 $33,937 $13,132 $48,851 $17,078 $62,143 $8,480 $30,536 28...................................................... 33,937 73,812 48,851 109,613 62,143 128,360 30,536 61,844 31...................................................... 73,812 145,735 109,613 177,494 128,360 185,189 61,844 95,644 36...................................................... 145,735 300,782 177,494 324,383 185,189 309,316 95,644 164,417 39.6.................................................... 300,782 324,383 309,316 164,417 --------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix D to Part 302-11--Puerto Rico Tax Tables for RIT Allowance

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Puerto Rico Marginal Tax Rates by Earned Income Level--Tax Year 1998 [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).] ---------------------------------------------------------------------------------------------------------------- Marginal tax rate Single filing status Any other filing status ---------------------------------------------------------------------------------------------------------------- Percent Over But not over Over But not over ---------------------------------------------------------------------------------------------------------------- 12.............................................. $25,000 18.............................................. $25,000 31.............................................. $25,000 50,000 $25,000 50,000 33.............................................. 50,000 50,000 ----------------------------------------------------------------------------------------------------------------

Dated: March 24, 1999 David J. Barram, Administrator of the General Services. [FR Doc. 99-8685 Filed 4-7-99; 8:45 am] BILLING CODE 6820-34-P