Proposed Rules. Final rule

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BILLING CODE 6560-50-S GENERAL SERVICES ADMINISTRATION 41 CFR Part 302-11 [FTR Amendment 102] RIN 3090-AH55 Federal Travel Regulation; Relocation Income Tax

(RIT)Allowance Tax Tables AGENCY: Office of Governmentwide Policy, 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 2002 RIT allowance to be paid to relocating Federal employees. DATES: This final rule is effective January 1, 2002, and applies for RIT allowance payments made on or after January 1, 2002. FOR FURTHER INFORMATION CONTACT: Calvin L. Pittman, Office of Governmentwide Policy, Travel Management 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 2002 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—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 currently in effect 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 2001 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 § 302-11.8(e)(1). The following table is to be used for employees whose Year 1 occurred during calendar year 2001: Marginal Tax Rate Percent Single Taxpayer Over But Not Over Heads of Household Over But Not Over Married Filing Jointly/Qualifying Widows & Widowers Over But Not Over Married Filing Separately Over But Not Over 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 Appendix B to Part 302-11—State Tax Tables for RIT Allowance State Marginal Tax Rates by Earned Income Level—Tax Year 2001 The following table is to be used to determine the State marginal tax rates for calculation of the RIT allowance as prescribed in § 301-11.8(e)(2). The following table is to be used for employees who received covered taxable reimbursements during calendar year 2001: 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 2.87 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 4 4 8 8 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 7.5 9.5 9.5 9.5 Florida 0 0 0 0 Georgia 6 6 6 6 Hawaii 6.9 7.9 8.5 8.5 If single status 3 7.9 8.5 8.5 8.5 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 6.25 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 4.8 4.8 4.8 4.8 Massachusetts 5.85 5.85 5.85 5.85 Michigan 4.2 4.2 4.2 4.2 Minnesota 5.36 7.05 7.05 7.85 If single status 3 7.05 7.05 7.05 7.85 Mississippi 5 5 5 5 Missouri 6 6 6 6 Montana 9 10 11 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 5.25 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 3.715 4.457 5.201 6.9 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 25.5 25.5 25.5 25.5 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 24 24 24 24 Virginia 5 5.75 5.75 5.75 Washington 0 0 0 0 West Virginia 4 4.5 6 6.5 Wisconsin 6.5 6.75 6.75 6.75 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 § 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 25.5 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 § 302-11.8(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 § 302-11.8(e)(2)(iii). Appendix C to Part 302-11—Federal Tax Tables for RIT Allowance—Year 2 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 2 for computation of the RIT allowance as prescribed in § 302-11.8(e)(1). The following table is to be used for employees whose Year 1 occurred during calendar years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000 or 2001: Marginal tax rate Percent Single Taxpayer Over But not over Heads of Household Over But not over Married Filing Jointly/Qualifying Widows & Widowers Over But not over Married filing separately Over But not over 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 Appendix D to Part 302-11—Puerto Rico Tax Tables for RIT Allowance Puerto Rico Marginal Tax Rates by Earned Income Level—Tax Year 2001 The following table is to be used to determine the Puerto Rico marginal tax rate for computation of the RIT allowance as prescribed in § 302-11.8(e)(4)(i): Marginal Tax Rate Percent Single Filing Status Over But Not Over Any Other Filing Status Over But Not Over 11 $25,000 16.5 $25,000 29.5 $25,000 50,000 $25,000 50,000 33 50,000 50,000 Dated: January 25, 2002. Stephen A. Perry, Administrator of General Services. [FR Doc. 02-2431 Filed 1-31-02; 8:45 am]

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