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Federal Travel Regulation; Relocation Income Tax (RIT) Allowance Tax Tables (2003 Update)

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Information about this document as published in the Federal Register.

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Start Preamble

AGENCY:

Office of Governmentwide Policy, General Services Administration (GSA).

ACTION:

Final rule.

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.

Start Further Info

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.

End Further Info End Preamble Start Supplemental Information

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 Start Printed Page 7942Federal, 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.

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List of Subjects in 41 CFR Chapter 302

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Dated: February 6, 2003.

Stephen A. Perry,

Administrator of General Services.

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For the reasons set forth in the preamble, under

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CHAPTER 302-17—RELOCATION INCOME TAX (RIT) ALLOWANCE

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1. The authority citation for

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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, C, and D to part 302-17 to read as follows:

End Amendment Part Start Appendix

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 § 302-17.8(e)(1). This table is to be used for employees whose Year 1 occurred during calendar year 2002.

Marginal tax rateSingle taxpayerHeads of householdMarried filing jointly/qualifying widows & widowersMarried filing separately
PercentOverBut not overOverBut not overOverBut not overOverBut not over
10$8,137$14,130$14,743$24,811$20,219$31,833$11,770$16,693
1514,13037,04024,81153,55631,83367,91416,69333,839
2737,04080,14053,556118,62467,914139,52833,83969,420
3080,140158,281118,624184,826139,528201,23669,420105,672
35158,281326,339184,826337,037201,236335,297105,672178,317
38.6326,339337,037335,297178,317
End Appendix Start Appendix

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 § 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

State (or district)$20,000-$24,999$25,000-$49,999$50,000-$74,999$75,000 & over
Alabama5555
Alaska0000
Arizona2.873.23.745.04
Arkansas4.5777
If single status 36777
California4689.3
If single status 3689.39.3
Colorado4.634.634.634.63
Connecticut4.54.54.54.5
Delaware5.25.555.955.95
District of Columbia7999
Florida0000
Georgia6666
Hawaii6.47.68.258.25
If single status 37.68.258.258.25
Idaho7.47.87.87.8
Illinois3333
Indiana3.43.43.43.4
Iowa6.487.928.988.98
If single status 36.87.928.988.98
Kansas3.56.256.456.45
If single status 36.256.456.456.45
Kentucky6666
Start Printed Page 7943
Louisiana2446
If single status 34466
Maine4.578.58.5
If single status 378.58.58.5
Maryland4.754.754.754.75
Massachusetts5.35.35.35.3
Michigan4.14.14.14.1
Minnesota5.357.057.057.85
If single status 37.057.057.857.85
Mississippi5555
Missouri6666
Montana891011
Nebraska3.495.016.686.68
If single status 35.016.686.686.68
Nevada0000
New Hampshire0000
New Jersey1.41.752.456.37
If single status 31.43.55.5256.37
New Mexico3.267.18.2
If single status 367.17.98.2
New York4.55.96.856.85
If single status 35.256.856.856.85
North Carolina6777.75
North Dakota2.13.924.345.04
If single status 32.13.925.045.04
Ohio3.7154.4575.2016.9
Oklahoma9101010
If single status 310101010
Oregon9999
Pennsylvania2.82.82.82.8
Rhode Island 425252525
South Carolina7777
South Dakota0000
Tennessee0000
Texas0000
Utah7777
Vermont 524242424
Virginia5.755.755.755.75
Washington0000
West Virginia44.566.5
Wisconsin6.156.56.56.75
Wyoming0000
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 § 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 § 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 § 302-17.8(e)(2)(iii).
End Appendix Start Appendix

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 § 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.

Marginal tax rateSingle taxpayerHeads of householdMarried filing jointly/qualifying widows & widowersMarried filing separately
PercentOverBut not overOverBut not overOverBut not overOverBut not over
10$8,274$14,314$15,005$25,136$20,977$32,559$10,958$16,536
1514,31437,77125,13654,71232,55969,72216,53634,507
2737,77181,89054,712122,78869,722142,84234,50770,442
3081,890162,802122,788193,703142,842206,67570,442107,631
35162,802334,763193,703350,138206,675343,919107,631181,753
38.6334,763350,138343,919181,753
End Appendix Start Appendix Start Printed 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 § 302-17.8(e)(4)(i).

Marginal tax rateSingle filing statusAny other filing status
PercentOverBut not overOverBut not over
10$25,000
15$25,000
28$25,00050,000$25,00050,000
3350,000$50,000
End Appendix End Supplemental Information

[FR Doc. 03-3882 Filed 2-18-03; 8:45 am]

BILLING CODE 6820-24-P