[Federal Register: March 15, 2004 (Volume 69, Number 50)]
[Rules and Regulations]
[Page 12079-12081]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr04-15]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-17
[FTR Amendment 2004-01; FTR Case 2004-301]
RIN 3090-AH94
Federal Travel Regulation; Relocation Income Tax Allowance Tax
Tables (2004 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 2004 RIT allowance to be paid to
relocating Federal employees.
DATES: Effective Date: January 1, 2004.
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 Sallie Sherertz, Office of Governmentwide Policy,
Travel Management Policy, at (202) 219-3455. Please cite FTR Amendment
2004-01, FTR case 2004-301.
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 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 Part 302-17
Government employees, Travel and transportation expenses.
Dated: February 27, 2004.
Stephen A. Perry,
Administrator of General Services.
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For the reasons set forth in the preamble, under 5 U.S.C. 5701-5739,
GSA amends 41 CFR part 302-17 as set forth below:
Chapter 302 Relocation Allowances
PART 302-17--RELOCATION INCOME TAX (RIT) ALLOWANCE
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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.
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2. Revise Appendixes A, B, and C 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 2003
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 2003.
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Marginal tax rate Single taxpayer Heads of household Married filing Married filing
------------------------------------------------------------------------------------------------------------- jointly/qualifying separately
widows & 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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Appendix B to Part 302-17--State Tax Tables For RIT Allowance
State Marginal Tax Rates by Earned Income Level--Tax Year 2003
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 2003.
[[Page 12080]]
Marginal Tax Rates (Stated in Percents) For the Earned Income Amounts Specified in Each Column.\1,2\
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\3\ $75,000
State (or district) $20,000-$24,999 $25,000-$49,999 $50,000-$74,999 & over
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Alabama......................................... 5 5 5 5
Alaska.......................................... 0 0 0 0
Arizona......................................... 3.20 3.74 4.72 5.04
Arkansas........................................ 6 7 7 7
California...................................... 2 4 8 9.3
If single status \4\............................ 6 8 9.3 9.3
Colorado........................................ 4.63 4.63 4.63 4.63
Connecticut..................................... 5 5 5 5
Delaware........................................ 5.2 5.55 5.95 5.95
District of Columbia............................ 7.5 9.3 9.3 9.3
Florida......................................... 0 0 0 0
Georgia......................................... 6 6 6 6
Hawaii.......................................... 6.4 7.6 8.25 8.25
If single status \4\............................ 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
Kansas.......................................... 3.5 6.25 6.45 6.45
If single status \4\............................ 6.25 6.45 6.45 6.45
Kentucky........................................ 6 6 6 6
Louisiana....................................... 4 6 6 6
Maine........................................... 7 8.5 8.5 8.5
If single status \4\............................ 8.5 8.5 8.5 8.5
Maryland........................................ 4 4 4 4
Massachusetts................................... 5.3 5.3 5.3 5.3
Michigan........................................ 4 4 4 4
Minnesota....................................... 5.35 7.05 7.05 7.05
If single status \4\............................ 7.05 7.05 7.85 7.85
Mississippi..................................... 5 5 5 5
Missouri........................................ 6 6 6 6
Montana......................................... 7 9 10 10
Nebraska........................................ 3.57 5.12 6.84 6.84
If single status \4\............................ 5.12 6.84 6.84 6.84
Nevada.......................................... 0 0 0 0
New Hampshire................................... 0 0 0 0
New Jersey...................................... 1.75 1.75 2.45 3.5
If single status \4\............................ 1.75 3.5 5.525 6.37
New Mexico...................................... 4.7 6 7.1 7.7
If single status \4\............................ 6 7.1 7.7 7.7
New York........................................ 5.25 5.9 6.85 6.85
If single status \4\............................ 6.85 6.85 6.85 6.85
North Carolina.................................. 7 7 7 7
North Dakota.................................... 2.1 2.1 3.92 3.92
If single status \4\............................ 2.1 2.1 3.92 4.34
Ohio............................................ 4.457 4.457 5.201 5.201
Oklahoma........................................ 7 7 7 7
Oregon.......................................... 9 9 9 9
Pennsylvania.................................... 2.8 2.8 2.8 2.8
Rhode Island \5\................................ 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 \6\..................................... 3.6 3.6 7.2 8.5
If single status \4\............................ 3.6 7.2 7.2 8.5
Virginia........................................ 5.75 5.75 5.75 5.75
Washington...................................... 0 0 0 0
West Virginia................................... 4 4.5 6 6.5
Wisconsin....................................... 6.5 6.5 6.5 6.5
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 is an estimate. For earnings over $100,000, please consult actual tax tables.
\4\ 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.
\5\ 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).
[[Page 12081]]
\6\ 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 2004
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 1994, 1995, 1996, 1997, 1998,
1999, 2000, 2001, 2002, or 2003.
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Marginal tax rate Single taxpayer Heads of household Married filing Married filing
------------------------------------------------------------------------------------------------------------- jointly/qualifying separately
widows & widowers ---------------------
But not But not ----------------------
Percent Over over Over over But not Over But not
Over over over
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10.............................................................. $8,486 $15,852 $15,539 $25,991 $22,763 $36,688 $10,614 $17,891
15.............................................................. 15,852 39,093 25,991 56,668 36,688 82,625 17,891 41,386
25.............................................................. 39,093 84,081 56,668 123,629 82,625 147,439 41,386 74,492
28.............................................................. 84,081 166,123 123,629 193,801 147,439 212,158 74,492 108,134
33.............................................................. 166,123 341,553 193,801 354,536 212,158 352,775 108,134 179,237
35.............................................................. 341,553 ......... 354,536 ......... 352,775 ......... 179,237 .........
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3. Amend the heading of Appendix D to part 302-17 by removing ``2002''
and adding ``2003'' in its place.
[FR Doc. 04-5715 Filed 3-12-04; 8:45 am]
BILLING CODE 6820-14-P