Federal Travel Regulation; Taxes on Relocation Expenses, Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) Eligibility, 31659-31665 [2021-11086]

Download as PDF 31659 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules Subpart CC—Nebraska 3. In § 52.1420, the table in paragraph (e) is amended by adding the entry ■ ‘‘(37)’’ in numerical order to read as follows: § 52.1420 * Identification of plan. * * (e) * * * * * EPA-APPROVED NEBRASKA NONREGULATORY PROVISIONS Applicable geographic or nonattainment area State submittal date * * (37) Section 110(a)(2)(D)(i)(I)—significant contribution to nonattainment (prong 1), and interfering with maintenance of the NAAQs (prong 2) (Interstate Transport) Infrastructure Requirements for the 2010 SO2 NAAQS. * Statewide ............. * 10/27/2020 [FR Doc. 2021–12501 Filed 6–14–21; 8:45 am] searching for ‘‘FTR Case 2020–302–1. Select the link ‘‘Comment Now’’ that corresponds with ‘‘FTR Case 2020–302– 1.’’ Follow the instructions provided on the screen. Please include your name, company name (if any), and ‘‘FTR Case 2020–302–1’’ on your attached document. If your comment cannot be submitted using https:// www.regulations.gov, call or email the points of contact in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Instructions: Please submit comments only and cite FTR Case 2020–302–1, in all correspondence related to this case. Comments received generally will be posted without change to http:// www.regulations.gov, including any personal and/or business confidential information provided. To confirm receipt of your comment(s), please check www.regulations.gov, approximately two to three days after submission to verify posting. FOR FURTHER INFORMATION CONTACT: Mr. Rodney (Rick) Miller, Program Analyst, Office of Government-wide Policy, at 202–501–3822 or rodney.miller@gsa.gov for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202– 501–4755 or GSARegSec@gsa.gov. Please cite ‘‘FTR Case 2020–302–1.’’ SUPPLEMENTARY INFORMATION: Name of nonregulatory SIP provision BILLING CODE 6560–50–P GENERAL SERVICES ADMINISTRATION 41 CFR Parts 300–3, 302–2, 302–3, 302–12, 302–15, and 302–17 [FTR Case 2020–302–1; Docket No. 2020– 0019, Sequence 1] RIN 3090–AK31 Federal Travel Regulation; Taxes on Relocation Expenses, Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) Eligibility Office of Government-wide Policy (OGP), General Services Administration (GSA). ACTION: Proposed rule. AGENCY: The General Services Administration (GSA), in consultation with the Secretary of the Treasury, is proposing to amend the Federal Travel Regulation (FTR) to authorize Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance (RITA) to all individuals who receive relocation allowances paid by the Federal Government. This amendment is in accordance with legislative changes to GSA’s statutory authority for taxes on reimbursements for travel, transportation, and relocation expenses as enacted in the National Defense Authorization Act for Fiscal Year 2020. DATES: Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before August 16, 2021 to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FTR Case 2020–302–1: Regulations.gov: http:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by khammond on DSKJM1Z7X2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:25 Jun 14, 2021 Jkt 253001 EPA approval date * * * [Date of publication of final rule in [EPA–R07–OAR–2021–0365; FRL– the Federal Register], [Federal 10024–81–Region 7]. This action Register citation of the final rule]. addresses the following CAA elements: 110(a)(2)(D)(i)(I)—prongs 1 and 2. I. Background Federal agencies authorize relocation entitlements to those listed at FTR § 302–1.1 and those assigned under the Government Employees Training Act (GETA) (5 U.S.C. Chapter 41). Public Law (Pub. L.) 115–97, known as the ‘‘Tax Cuts and Jobs Act of 2017,’’ suspended qualified moving expense deductions along with the exclusion for employer reimbursements and payments of moving expenses effective January 1, 2018, for tax years 2018 through 2025, therefore making almost PO 00000 Frm 00015 Fmt 4702 Explanation Sfmt 4702 all relocation entitlements subject to additional tax liability. To assist with the additional tax liability, agencies are authorized to pay WTA and RITA to cover ‘‘substantially all’’ of the increased tax liability resulting from receipt of the relocation expense reimbursements either paid directly or indirectly. However, in the version of 5 U.S.C. 5724b immediately preceding the passage of Section 1114 of the ‘‘National Defense Authorization Act for Fiscal Year 2020’’ (Pub. L. 116– 92) (‘‘the Act’’), WTA and RITA were available only to employees ‘‘transferred’’ in the interest of the Government from one official station or agency to another for permanent duty. Previously, new appointees (including political appointees), Senior Executive Service (SES) employees performing a ‘‘last move home’’, employees returning from an overseas assignment for the purpose of separating from Government service, and those assigned under GETA were not eligible for WTA and RITA as such individuals were not ‘‘transferred’’ in the interest of the Government from one official station or agency to another for permanent duty. The suspension of qualified moving expense deductions in Public Law 115–97 substantially increased the tax liability of these individuals, which could not be reimbursed through WTA or RITA. However, Section 1114 of the Act amended 5 U.S.C. 5724b to expand eligibility for WTA and RITA beyond ‘‘transferred’’ employees to include all individuals whose travel, transportation, or relocation expenses are reimbursed or furnished in kind pursuant to subchapter 57 or chapter 41 of title 5, U.S.C. These individuals include, among others, those not previously eligible for WTA and RITA, e.g., new appointees (including political appointees), employees returning from an overseas assignment for the purpose of separation from Government service, E:\FR\FM\15JNP1.SGM 15JNP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 31660 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules SES employees eligible for last move home entitlements, and those assigned under GETA. The Act also includes a retroactive effective date to January 1, 2018 to allow those individuals who received taxable travel, transportation, or relocation allowances since January 1, 2018 to now submit a RITA claim for the additional tax liability. Of note, 5 U.S.C. 5724b(b) contains an apparent typographical error as shown here in bold: ‘‘(b) For purposes of this section, the term ‘travel, transportation, or relocation expenses’ means all travel, transportation, or relocation expenses reimbursed or furnished in kind pursuant to this subchapter of chapter 41.’’ (emphasis added). A literal implementation of the text would render this statutory provision meaningless because ‘‘this subchapter of chapter 41’’ does not exist. Accordingly, GSA developed a legislative proposal to correct the typographical error. However, until such time as a statutory amendment is made, GSA will implement 5 U.S.C. 5724b(b) as if it reads ‘‘. . . pursuant to this subchapter or chapter 41.’’ (emphasis added). GSA’s decision is based on conversations with Congress, and is aimed at avoiding a literal interpretation of the statute which would produce an absurd result that is demonstrably at odds with Congressional intent. Pursuant to 5 U.S.C. 5738, the Administrator of General Services is mandated to prescribe necessary regulations regarding Federal employees who relocate in the interest of the Government. The overall implementing authority is the FTR, codified in Title 41 of the Code of Federal Regulations, Chapters 300–304 (41 CFR Chapters 300–304). This proposed rule would amend FTR sections pertaining to eligibility for WTA and RITA in accordance with statutory changes to 5 U.S.C. 5724b. Specifically, this amendment will update relevant tables in FTR Part 302– 3 to include RITA as a mandatory allowance that agencies must pay or reimburse. This proposed rule will also adjust the relocation tables at §§ 302–3.2 and 302–3.101 to update certain mandatory and discretionary relocation entitlements depending on the individual’s type of movement. Updates to the tables include, but are not limited to, adding use of a relocation services company, home marketing incentives, and temporary quarters subsistence expense (TQSE) as discretionary allowances to, from, or between nonforeign areas. The tables will also be updated to remove home marketing VerDate Sep<11>2014 16:25 Jun 14, 2021 Jkt 253001 incentives for new appointees who are not entitled to real estate expenses. Additionally, this proposed rule will indicate, as relevant, where allowances are intended to apply more broadly to other relocating individuals (e.g., appointments, reassignments, separations, and last move(s) home) in addition to transferred employees. II. Executive Orders 12866 and 13563 Executive Orders (E.O.) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives, and if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is anticipated to be a significant regulatory action and, therefore, was subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This proposed rule is not anticipated to be a major rule under 5 U.S.C. 804. III. Congressional Review Act This proposed rule is not a major rule under 5 U.S.C. 804(2). Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (codified at 5 U.S.C. 801–808), also known as the Congressional Review Act or CRA, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. The GSA will submit a report containing this proposed rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule under the CRA cannot take effect until 60 days after it is published in the Federal Register. OIRA has determined that this proposed rule is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). IV. Regulatory Flexibility Act GSA does not expect this proposed rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq because it applies only to Federal agencies and employees and it affects less than one percent of all federal employees’ relocations. The PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 administrative changes provide further clarification with no impact to agencies. Therefore, an Initial Regulatory Flexibility Analysis has not been performed. GSA invites comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities. GSA will also consider comments from small entities concerning the existing regulations in subparts affected by the proposed rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FTR Case 2020–302–1), in correspondence. V. 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 (OMB) under 44 U.S.C. 3501, et seq. List of Subjects in 41 CFR Parts 300–3, 302–2, 302–3, 302–12, 302–15, and 302– 17 Government employees, Income taxes, Travel and transportation expenses. Krystal J. Brumfield, Associate Administrator, Office of Government-wide Policy. Therefore, GSA proposes amending 41 CFR parts 300–3, 302–2, 302–3, 302– 12, 302–15, and 302–17 as set forth below: PART 300–3—GLOSSARY OF TERMS 1. The authority citation for 41 CFR part 300–3 continues to read as follows: ■ Authority: 5 U.S.C. 5707; 40 U.S.C. 121(c); 49 U.S.C. 40118; 5 U.S.C. 5738; 5 U.S.C. 5741–5742; 20 U.S.C. 905(a); 31 U.S.C. 1353; E.O. 11609, as amended, 3 CFR, 1971–1975 Comp., p. 586; Office of Management and Budget Circular No. A–126, revised May 22, 1992. 2. Amend § 300–3.1 by revising the heading of the definition of ‘‘Relocation service company (RSC)’’ and the first sentence to read as follows: ■ § 300–3.1 mean? What do the following terms * * * * * Relocation services company (RSC)— A third-party supplier under contract with an agency to assist an eligible individual who relocates. * * * * * * * * E:\FR\FM\15JNP1.SGM 15JNP1 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules PART 302–2—EMPLOYEES ELIGIBILITY REQUIREMENTS 3. The authority citation for 41 CFR part 302–2 continues to read as follows: ■ Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a). ■ 4. Revise § 302–2.1 to read as follows: § 302–2.1 When may I begin my relocation? You may begin your relocation only after your agency has approved your travel authorization (TA) in writing (paper or electronic). ■ 5. Revise § 302–2.13 to read as follows: § 302–2.13 What is a service agreement? A service agreement is a written and signed agreement between you and your agency. The service agreement states that you will remain in the service of the Government, after you have relocated, for a period of time as specified in § 302–2.14. A service agreement must also include the duplicate reimbursement disclosure statement specified in §§ 302–2.21, 302– 2.22, and 302–2.100(g). Note 1 to § 302–2.13. A service agreement is not required for a ‘‘last move home’’ relocation, a temporary change of station, or separation from Government service. CONUS or OCONUS, renewal agreement travel, or assignment under GETA. The minimum periods of service are: (a) Within CONUS for a period of service of not less than 12 months following the effective date of your appointment or transfer; (b) OCONUS for an agreed upon period of service of not more than 36 months or less than 12 months following the effective date of your appointment or transfer; (c) Department of Defense Overseas Dependent School System teachers for a period of not less than one school year as determined under chapter 25 of Title 20, United States Code; (d) For renewal agreement travel, a period of not less than 12 months from the date of return to the same or different overseas official station; and (e) For assignment under GETA, not less than three times the length of the training period as prescribed by the head of your agency. ■ 7. Revise § 302–2.17 to read as follows. 31661 § 302–2.101 When may we authorize reimbursement for relocation expenses? You may authorize reimbursement for relocation expenses: (a) When you have determined that an eligible individual’s relocation is in the best interest of the Government as specified in § 302–1.1; and (b) Only after an eligible individual has signed a service agreement to remain in service for the period specified in § 302–2.14. PART 302–3—RELOCATION ALLOWANCE BY SPECIFIC TYPE 9. The authority citation for 41 CFR part 302–3 continues to read as follows: ■ Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a). § 302–3.2 [Amended] 10. Amend § 302–3.2 by: A. Revise the section heading and the first sentence of the introductory paragraph. ■ B. Revise Tables A and B. The revisions read as follows: ■ ■ 6. Revise § 302–2.14 to read as follows. § 302–2.17 Must I sign a service agreement for a ‘‘last move home’’ relocation or separation from Government service? § 302–3.2 As a new appointee or student trainee what relocation expenses may my agency pay or reimburse me for incident to an assignment to my first official station? § 302–2.14 Am I required to sign a service agreement for an appointment or transfer CONUS or OCONUS, renewal agreement travel, or assignment under GETA, and what is the minimum period of service? No, you do not need to sign a service agreement for a ‘‘last move home’’ relocation or separation from Government service. ■ 8. Revise § 302–2.101 to read as follows: As a new appointee or student trainee assigned to your first official station, your agency may pay or reimburse you the relocation expenses indicated for the type of assignment in Tables A and B of this section. * * * ■ Yes, you are required to sign a service agreement for appointment or transfer TABLE A—ASSIGNED TO FIRST OFFICIAL STATION IN THE CONTINENTAL UNITED STATES (CONUS) Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Transportation of employee & immediate family member(s) (part 302–4 of this chapter). 2. Per diem for employee only (part 302–4 of this chapter) .................... 3. Transportation & temporary storage of household goods (part 302–7 of this chapter). 4. Extended storage of household goods (part 302–8 of this chapter).1 5. Transportation of a mobile home or boat used as a primary residence in lieu of the transportation of household goods (part 302–10 of this chapter). 6. Relocation income tax allowance (RITA) (part 302–17 of this chapter). 1. Shipment of privately owned vehicle (POV) (part 302–9 of this chapter). 2. Use of a relocation services company (part 302–12 of this chapter). khammond on DSKJM1Z7X2PROD with PROPOSALS 1 Note to Column 1, Item 4: Only when assigned to a designated isolated official station in CONUS. TABLE B—ASSIGNED TO FIRST OFFICIAL STATION OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Transportation of employee & immediate family member(s) (part 302–4 of this chapter). 1. Shipment of privately owned vehicle (POV) (part 302–9 of this chapter). VerDate Sep<11>2014 18:04 Jun 14, 2021 Jkt 253001 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\15JNP1.SGM 15JNP1 31662 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules TABLE B—ASSIGNED TO FIRST OFFICIAL STATION OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS)—Continued Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 2. Per diem employee only (part 302–4) ................................................. 2. Temporary quarters subsistence expense (TQSE) is not authorized in a foreign area; however, you may be entitled to the following under the Department of State Standardized Regulations (Government Civilians—Foreign Areas) which is available from the Superintendent of Documents, Washington, DC 20402. (a) Foreign Transfer Allowance (FTA) (Subsistence Expense) for quarters occupied temporarily before departure from the 50 states or the District of Columbia for an official station in a foreign area incident to a permanent change of station and travel to first official station overseas. (b) Temporary quarters subsistence allowance ((TQSA) when a transfer is authorized to a foreign area. (c) The miscellaneous expense portion of the FTA is authorized incident to first official station travel to a foreign area. 3. Use of a relocation services company (part 302–12 of this chapter). 3. Transportation & temporary storage of household goods (part 302–7 of this chapter). 4. Extended storage of household goods (part 302–8 of this chapter). 5. Relocation income tax allowance (RITA) (part 302–17 of this chapter). 11. Amend Part 302–3 by revising the heading to Subpart B to read as follows: ■ Subpart B—Transferred Employees and Other Relocated Employees § 302–3.101 [Amended] 12. Amend § 302–3.101 by: ■ a. Amending the section heading by adding the words ‘‘or other relocated ■ employee’’ after the words ‘‘transferred employee’’; ■ b. Amending the first sentence of the introductory text by adding the words ‘‘or other relocated employee’’ after the words ‘‘transferred employee’’; and ■ c. Amending the second sentence of the introductory text by removing the word ‘‘transfer’’ and adding the word ‘‘relocation’’ in its place. d. Revising Tables A, B, C, D, F, G, and I. The revisions read as follows: ■ § 302–3.101 As a transferred employee or other relocated employee what relocation allowances must my agency pay or reimburse to me? * * * * * TABLE A—TRANSFER BETWEEN OFFICIAL STATIONS IN THE CONTINENTAL UNITED STATES (CONUS) Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Transportation & per diem for employee & immediate family member(s) (part 302–4 of this chapter). 2. Miscellaneous moving expense (part 302–16 of this chapter) ............ 1. Househunting per diem & transportation, employee & spouse only (part 302–5 of this chapter). 2. Temporary quarters subsistence expense (TQSE) (part 302–6 of this chapter). 3. Shipment of privately owned vehicle (POV) (part 302–9 of this chapter). 4. Use of a relocation services company (part 302–12 of this chapter). 3. Sell or buy residence transactions or lease termination expenses (part 302–11 of this chapter). 4. Transportation & temporary storage of household goods (part 302–7 of this chapter). 5. Extended storage of household goods (part 302–8 of this chapter). 1 6. Transportation of a mobile home or boat used as a primary residence in lieu of the transportation of household goods (part 302–10 of this chapter).2 7. Relocation income tax allowance (RITA) (part 302–17 of this chapter). 5. Property management services (part 302–15 of this chapter) 6. Home marketing incentives (part 302–14 of this chapter). 1 Note to Column 1, Item 5: Only when assigned to a designated isolated official station in CONUS. to Column 1, Item 6: Mobile homes may be shipped within CONUS, within Alaska, and through Canada en route between Alaska and CONUS or through Canada between one CONUS point and another (e.g., between Buffalo, NY and Detroit, MI). 2 Note khammond on DSKJM1Z7X2PROD with PROPOSALS TABLE B—TRANSFER FROM CONUS TO AN OFFICIAL STATION OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Transportation & per diem for employee & immediate family member(s) (part 302–4 of this chapter). 1. Temporary quarters subsistence expense (TQSE) when transfer is to a non-foreign area. In foreign areas you may be entitled to the following under the Department of State Standardized Regulations (DSSR) (Government Civilians—Foreign Areas): (a) A Foreign Transfer Allowance (FTA) for quarters occupied temporarily before departure from the 50 states or the District of Columbia for an official station in a foreign area incident to a permanent change of station and travel to first official station overseas. VerDate Sep<11>2014 18:04 Jun 14, 2021 Jkt 253001 PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 E:\FR\FM\15JNP1.SGM 15JNP1 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules 31663 TABLE B—TRANSFER FROM CONUS TO AN OFFICIAL STATION OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS)—Continued Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse Column 1—Relocation allowances that agency must pay or reimburse 2. Miscellaneous expense allowance (part 302–16 of this chapter) ........ 3. Transportation & temporary storage of household goods (part 302–7 this chapter). 4. Extended storage of household goods (part 302–8 of this chapter) ... 6. Relocation income tax allowance (RITA) (part 302–17 of this chapter). (b) Temporary quarters subsistence allowance (TQSA). 2. Property management services (part 302–15 of this chapter). 3. Shipment of a privately owned vehicle (part 302–9 of this chapter). 4. Use of relocation service companies (part 302–12 of this chapter). 5. Home marketing incentives when transfer is to a non-foreign area (part 302–14 of this chapter). 6. Househunting per diem & transportation, employee & spouse only when transfer is to a non-foreign area (part 302–5 of this chapter. TABLE C—TRANSFER FROM OCONUS OFFICIAL STATION TO AN OFFICIAL STATION IN CONUS Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse Column 1—Relocation allowances that agency must pay or reimburse (1) Transportation & per diem for employee & immediate family member(s) (part 302–4 of this chapter). (2) Miscellaneous expense allowance (part 302–16 of this chapter) ...... (3) Sell & buy residence transaction expenses or lease termination expenses (part 302–11 of this chapter)1. (4) Transportation & temporary storage of household goods (part 302– 7 of this chapter). (5) Extended storage of household goods only when assigned to a designated isolated official station in CONUS (part 302–8 of this chapter). (6) Relocation income tax allowance (RITA) (part 302–17 of this chapter). (1) Shipment of a privately owned vehicle (part 302–9 of this chapter). (2) Temporary quarters subsistence expense (TQSE) (part 302–6 of this chapter).2 (3) Use of a relocation services company (part 302–12 of this chapter). (4) Home marketing incentives when transfer is from a non-foreign area (part 302–14 of this chapter). 1 Note to Column 1 Item 3: Allowed when old and new official stations are located in the United States. Also allowed when instead of being returned to the former official station in the United States, an employee is transferred in the interest of the Government to a different official station in the United States than from the official station from which transferred when assigned to the foreign official station. 2 Note to Column 2, Item 2: A TQSA under the DSSR may be authorized preceding final departure subsequent to the necessary vacating of residence quarters. TABLE D—TRANSFER BETWEEN OCONUS OFFICIAL STATIONS Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse (1) Transportation & per diem for employee & immediate family member(s) (part 302–4 of this chapter). (2) Transportation & temporary storage of household goods (part 302– 7 of this chapter). (3) Miscellaneous expense allowance (part 302–16 of this chapter) ...... (1) Shipment of a privately owned vehicle (POV) (part 302–09 of this chapter). (2) Property management services (part 302–15 of this chapter). (4) Extended storage of household goods (part 302–8 of this chapter) .. (5) Sell & buy residence transaction expenses or lease termination expenses when transfer is between non-foreign areas (part 302–11 of this chapter). (6) Relocation income tax allowance (RITA) (part 302–17 of this chapter). khammond on DSKJM1Z7X2PROD with PROPOSALS 1Note (3) Househunting per diem & transportation for employee & spouse only when transfer is between non-foreign areas (part 302–5 of this chapter). (4) Temporary quarters subsistence expense (TQSE) when transfer is to or between non-foreign areas (part 302–6 of this chapter).1 (5) Use of a relocation services company (part 302–12 of this chapter). (6) Home marketing incentives when transfer is between non-foreign areas (part 302–14 of this chapter). to Column 2, item 4: TQSA may be authorized under the DSSR. TABLE F—RETURN FROM OCONUS OFFICIAL STATION TO PLACE OF ACTUAL RESIDENCE FOR SEPARATION Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Transportation for employee & immediate family member(s) (part 302–4 of this chapter). 2. Per diem for employee only (part 302–4 of this chapter) .................... 3. Transportation & temporary storage of household goods (part 302–7 of this chapter). 1. Shipment of a privately owned vehicle (POV) (part 302–9 of this chapter). 2. Use of a relocation services company (part 302–12 of this chapter). VerDate Sep<11>2014 16:25 Jun 14, 2021 Jkt 253001 PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 E:\FR\FM\15JNP1.SGM 15JNP1 31664 Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules TABLE F—RETURN FROM OCONUS OFFICIAL STATION TO PLACE OF ACTUAL RESIDENCE FOR SEPARATION—Continued Column 1—Relocation allowances that agency must pay or reimburse Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 4. Relocation income tax allowance (RITA) (part 302–17 of this chapter). Note to Table F: This table also applies to an employee returning to the CONUS to transfer to a new duty station after completing a tour of duty OCONUS if relocation expenses have not been authorized to the new duty station. In that case, and unless otherwise agreed to, the employee is only eligible for return expenses from the OCONUS duty station to the employee’s actual residence, payable by the losing agency. * TABLE G—LAST MOVE HOME FOR SES CAREER APPOINTEES UPON SEPARATION FROM GOVERNMENT SERVICE—Continued TABLE G—LAST MOVE HOME FOR SES CAREER APPOINTEES UPON SEPARATION FROM GOVERNMENT SERVICE Column 1— Relocation allowances that agency must pay or reimburse 1. Transportation for employee & immediate family member(s) (part 302–4 of this chapter). 2. Per diem for employee only (part 302–4 of this chapter). 3. Transportation & temporary storage of household goods (part 302–7 of this chapter). Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 1. Shipment of privately owned vehicle (POV) (part 302–9, subpart B of this chapter). 2. Use of a relocation services company (part 302– 12 of this chapter). Column 1— Relocation allowances that agency must pay or reimburse * * * * Column 2—Relocation allowances that agency has discretionary authority to pay or reimburse 4. Transportation of a mobile home or boat used as a primary residence in lieu of the transportation of household goods (part 302–10 of this chapter). 5. Relocation income tax allowance (RITA) (part 302–17 of this chapter).. TABLE I—ASSIGNMENT UNDER THE GOVERNMENT EMPLOYEES TRAINING ACT [5 U.S.C. 4109] 1 1. 2. 3. 4. Transportation of employee & immediate family member(s) (part 302–4 of this chapter). Per Diem for employee (part 302–4 of this chapter). Movement of household goods & temporary storage (part 302–7 of this chapter). Relocation income tax allowance (RITA) (part 302–17 of this chapter). 1 Note to Table I: The allowances listed in Table I may be authorized in lieu of per diem or actual expense allowances. This is not considered a permanent change of station. § 302–3.300 [Amended] khammond on DSKJM1Z7X2PROD with PROPOSALS § 302–3.306 [Amended] 14. Amend § 302–3.306 by removing from the introductory paragraph the words ‘‘item 7 of Tables A and C in’’ and adding the words ‘‘Table G to’’ in its place. ■ 15. Amend § 302–3.427 by: ■ a. Removing in paragraph (f) the word ‘‘and’’ at the end of the paragraph; ■ VerDate Sep<11>2014 16:25 Jun 14, 2021 b. Removing in paragraph (g) the ‘‘.’’ from the end of the paragraph and adding the ‘‘ ; and’’ in its place; and ■ c. Adding a new paragraph (h). The addition reads as follows: ■ 13. Amend § 302–3.300 by adding in the introductory paragraph the words ‘‘(see Table F in § 302–3.101 for a summary of allowances)’’ after the word ‘‘goods’’. ■ Jkt 253001 § 302–3.427 What relocation allowances may my agency pay when I am permanently assigned to my temporary official station? * * * * * (h) Relocation income tax allowance (RITA) under part 302–17 of this chapter. ■ 16. Revise § 302–3.503 to read as follows: PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 § 302–3.503 Must we require employees to sign a service agreement? Yes, you must require employees to sign a service agreement if the employee is receiving reimbursement for relocation travel expenses, except as provided in §§ 302–2.17, 302–3.300, and 302–3.410. ■ 17. Amend § 302–3.505 by revising paragraphs (a) through (d) and adding paragraph (e) to read as follows: § 302–3.505 How long must we require an employee to agree to the terms of a service agreement? * E:\FR\FM\15JNP1.SGM * * 15JNP1 * * Federal Register / Vol. 86, No. 113 / Tuesday, June 15, 2021 / Proposed Rules (a) Within CONUS for a period of service of not less than 12 months following the effective date of appointment or transfer; (b) OCONUS for an agreed upon period of service of not more than 36 months or less than 12 months following the effective date of appointment or transfer; (c) Department of Defense Overseas Dependent School System teachers for a period of not less than one school year as determined under chapter 25 of Title 20, United States Code; (d) For renewal agreement travel, a period of not less than 12 months from the date of return to the same or different overseas official station; and (e) For assignment under GETA, not less than three times the length of the training period as prescribed by the head of the agency. § 302–17.1 this Part? PART 302–12—USE OF A RELOCATION SERVICES COMPANY ■ 18. The authority citation for 41 CFR part 302–12 continues to read as follows: ■ Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c). § 302–12.100 [Amended] 19. Amend § 302–12.100 by removing from the first sentence the words ‘‘a transferred employee in relocating to the new official station’’ and adding the words ‘‘an employee who relocates.’’ in its place. ■ PART 302–15—ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES 20. The authority citation for 41 CFR part 302–15 continues to read as follows: ■ Authority: 5 U.S.C. 5738; 20 U.S.C 905(a); E.O. 11609, as amended, 3 CFR, 1971–1975 Comp., p 586. § 302–15.13 [Amended] 21. Amend § 302–15.13 by removing in the first sentence the word ‘‘service’’ and adding the word ‘‘services’’ in its place. ■ khammond on DSKJM1Z7X2PROD with PROPOSALS PART 302–17—TAXES ON RELOCATION EXPENSES 22. The authority citation for 41 CFR part 302–17 continues to read as follows: ■ Authority: 5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, as amended, 3 CFR, 1971–1975 Comp., p. 586. What special terms apply to * * * * * Relocation income tax allowance (RITA) means the payment to individuals to cover the difference between the withholding tax allowance (WTA), if any, and the actual income tax liability incurred by the individual, and such individual’s spouse (if filing jointly), as a result of their taxable relocation benefits, RITA is paid whenever the actual income tax liability exceeds the WTA and applies to any travel, transportation, and relocation expenses reimbursed or furnished in kind pursuant to chapter 57, subchapter II of title 5 U.S.C. and 5 U.S.C. chapter 41. * * * * * § 302–17.3 [Amended] 24. Amend § 302–17.3 by removing the words ‘‘transferred employees’’ and adding the words ‘‘employees or individuals eligible for relocation expense allowances under § 302–1.1’’ in its place. ■ 25. Amend § 302–17.5 by revising the second sentence and adding a third sentence to read as follows: § 302–17.5 the RITA? Who is eligible for the WTA and * * * You are eligible for the WTA and the RITA if you are relocating in the interest of the Government, and your agency’s reimbursements to you for relocation expenses result in you being liable for additional income taxes. Eligibility for WTA and RITA includes, among others, transferred employees, appointments (new or political), assignments under the Government Employees Training Act, and those returning from an overseas assignment for the purpose of separation from Government service. § 302–17.6 ■ [Removed] 26. Remove § 302–17.6. §§ 302–17.7 through 302–17.13 [Redesignated as §§ 302–17.6 through 302– 17.12] 27. Redesignate §§ 302–17.7 through 302–17.13 as §§ 302–17.6 through 302– 17.12. ■ [FR Doc. 2021–11086 Filed 6–14–21; 8:45 am] BILLING CODE 6820–14–P 23. Amend § 302–17.1 by revising the definition for ‘‘Relocation income tax allowance (RITA)’’ to read as follows: ■ VerDate Sep<11>2014 16:25 Jun 14, 2021 Jkt 253001 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 31665 DEPARTMENT OF THE INTERIOR Bureau of Land Management 43 CFR Part 8365 [212.LLAZA01000.L1220000.DD0000] Notice of Proposed Supplementary Rule for Public Lands at Virgin River Canyon Recreation Area in Mohave County, Arizona Bureau of Land Management, Interior. ACTION: Proposed supplementary rule. AGENCY: The Bureau of Land Management (BLM) proposes to establish a supplementary rule reinstating a 14-day camping limit at the Virgin River Canyon Recreation Area within the Arizona Strip Field Office, Arizona Strip District, Mohave County, Arizona. The rule is needed to protect public health and safety, reduce user conflicts within the designated recreation area, and protect the area’s natural resources. DATES: Interested parties may submit comments to the BLM at one of the addresses below on or before August 16, 2021. ADDRESSES: Comments concerning this notice should be addressed to the Bureau of Land Management, Attention: Amanda Sparks, BLM Arizona Strip Field Office, 345 East Riverside Drive, St George, AZ 84790, or email: blm_az_ asdo_comments@blm.gov. FOR FURTHER INFORMATION CONTACT: Amanda Sparks, Assistant Field Manager, Arizona Strip Field Office, at 435–688–3271 or by email at BLM_AZ_ ASDO Comments@blm.gov. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Relay Service (FRS) at 1–800–877–8339 to contact the above individual. The FRS is available 24 hours a day, seven days a week, to leave a message or question with the above individual. You will receive a reply during normal business hours. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background Information The BLM is proposing this supplementary rule under the authority of 43 Code of Federal Regulations (CFR) 8365.1–6, which allows BLM State Directors to establish supplementary rules for the protection of persons, property, and public lands and resources. This provision allows the BLM to issue rules of less than national effect by publishing the rule in the Federal Register, without codifying it in the CFR. This proposed supplementary E:\FR\FM\15JNP1.SGM 15JNP1

Agencies

[Federal Register Volume 86, Number 113 (Tuesday, June 15, 2021)]
[Proposed Rules]
[Pages 31659-31665]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11086]


=======================================================================
-----------------------------------------------------------------------

GENERAL SERVICES ADMINISTRATION

41 CFR Parts 300-3, 302-2, 302-3, 302-12, 302-15, and 302-17

[FTR Case 2020-302-1; Docket No. 2020-0019, Sequence 1]
RIN 3090-AK31


Federal Travel Regulation; Taxes on Relocation Expenses, 
Withholding Tax Allowance (WTA) and Relocation Income Tax Allowance 
(RITA) Eligibility

AGENCY:  Office of Government-wide Policy (OGP), General Services 
Administration (GSA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The General Services Administration (GSA), in consultation 
with the Secretary of the Treasury, is proposing to amend the Federal 
Travel Regulation (FTR) to authorize Withholding Tax Allowance (WTA) 
and Relocation Income Tax Allowance (RITA) to all individuals who 
receive relocation allowances paid by the Federal Government. This 
amendment is in accordance with legislative changes to GSA's statutory 
authority for taxes on reimbursements for travel, transportation, and 
relocation expenses as enacted in the National Defense Authorization 
Act for Fiscal Year 2020.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addresses shown below on or before 
August 16, 2021 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FTR Case 2020-302-1: 
Regulations.gov: http://www.regulations.gov. Submit comments via the 
Federal eRulemaking portal by searching for ``FTR Case 2020-302-1. 
Select the link ``Comment Now'' that corresponds with ``FTR Case 2020-
302-1.'' Follow the instructions provided on the screen. Please include 
your name, company name (if any), and ``FTR Case 2020-302-1'' on your 
attached document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR 
FURTHER INFORMATION CONTACT section of this document for alternate 
instructions.
    Instructions: Please submit comments only and cite FTR Case 2020-
302-1, in all correspondence related to this case. Comments received 
generally will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check 
www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Mr. Rodney (Rick) Miller, Program 
Analyst, Office of Government-wide Policy, at 202-501-3822 or 
[email protected] for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755 or [email protected]. Please cite 
``FTR Case 2020-302-1.''

SUPPLEMENTARY INFORMATION:

I. Background

    Federal agencies authorize relocation entitlements to those listed 
at FTR Sec.  302-1.1 and those assigned under the Government Employees 
Training Act (GETA) (5 U.S.C. Chapter 41).
    Public Law (Pub. L.) 115-97, known as the ``Tax Cuts and Jobs Act 
of 2017,'' suspended qualified moving expense deductions along with the 
exclusion for employer reimbursements and payments of moving expenses 
effective January 1, 2018, for tax years 2018 through 2025, therefore 
making almost all relocation entitlements subject to additional tax 
liability.
    To assist with the additional tax liability, agencies are 
authorized to pay WTA and RITA to cover ``substantially all'' of the 
increased tax liability resulting from receipt of the relocation 
expense reimbursements either paid directly or indirectly. However, in 
the version of 5 U.S.C. 5724b immediately preceding the passage of 
Section 1114 of the ``National Defense Authorization Act for Fiscal 
Year 2020'' (Pub. L. 116-92) (``the Act''), WTA and RITA were available 
only to employees ``transferred'' in the interest of the Government 
from one official station or agency to another for permanent duty.
    Previously, new appointees (including political appointees), Senior 
Executive Service (SES) employees performing a ``last move home'', 
employees returning from an overseas assignment for the purpose of 
separating from Government service, and those assigned under GETA were 
not eligible for WTA and RITA as such individuals were not 
``transferred'' in the interest of the Government from one official 
station or agency to another for permanent duty. The suspension of 
qualified moving expense deductions in Public Law 115-97 substantially 
increased the tax liability of these individuals, which could not be 
reimbursed through WTA or RITA.
    However, Section 1114 of the Act amended 5 U.S.C. 5724b to expand 
eligibility for WTA and RITA beyond ``transferred'' employees to 
include all individuals whose travel, transportation, or relocation 
expenses are reimbursed or furnished in kind pursuant to subchapter 57 
or chapter 41 of title 5, U.S.C. These individuals include, among 
others, those not previously eligible for WTA and RITA, e.g., new 
appointees (including political appointees), employees returning from 
an overseas assignment for the purpose of separation from Government 
service,

[[Page 31660]]

SES employees eligible for last move home entitlements, and those 
assigned under GETA. The Act also includes a retroactive effective date 
to January 1, 2018 to allow those individuals who received taxable 
travel, transportation, or relocation allowances since January 1, 2018 
to now submit a RITA claim for the additional tax liability.
    Of note, 5 U.S.C. 5724b(b) contains an apparent typographical error 
as shown here in bold: ``(b) For purposes of this section, the term 
`travel, transportation, or relocation expenses' means all travel, 
transportation, or relocation expenses reimbursed or furnished in kind 
pursuant to this subchapter of chapter 41.'' (emphasis added). A 
literal implementation of the text would render this statutory 
provision meaningless because ``this subchapter of chapter 41'' does 
not exist. Accordingly, GSA developed a legislative proposal to correct 
the typographical error. However, until such time as a statutory 
amendment is made, GSA will implement 5 U.S.C. 5724b(b) as if it reads 
``. . . pursuant to this subchapter or chapter 41.'' (emphasis added). 
GSA's decision is based on conversations with Congress, and is aimed at 
avoiding a literal interpretation of the statute which would produce an 
absurd result that is demonstrably at odds with Congressional intent.
    Pursuant to 5 U.S.C. 5738, the Administrator of General Services is 
mandated to prescribe necessary regulations regarding Federal employees 
who relocate in the interest of the Government. The overall 
implementing authority is the FTR, codified in Title 41 of the Code of 
Federal Regulations, Chapters 300-304 (41 CFR Chapters 300-304).
    This proposed rule would amend FTR sections pertaining to 
eligibility for WTA and RITA in accordance with statutory changes to 5 
U.S.C. 5724b. Specifically, this amendment will update relevant tables 
in FTR Part 302-3 to include RITA as a mandatory allowance that 
agencies must pay or reimburse.
    This proposed rule will also adjust the relocation tables at 
Sec. Sec.  302-3.2 and 302-3.101 to update certain mandatory and 
discretionary relocation entitlements depending on the individual's 
type of movement. Updates to the tables include, but are not limited 
to, adding use of a relocation services company, home marketing 
incentives, and temporary quarters subsistence expense (TQSE) as 
discretionary allowances to, from, or between non-foreign areas. The 
tables will also be updated to remove home marketing incentives for new 
appointees who are not entitled to real estate expenses.
    Additionally, this proposed rule will indicate, as relevant, where 
allowances are intended to apply more broadly to other relocating 
individuals (e.g., appointments, reassignments, separations, and last 
move(s) home) in addition to transferred employees.

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives, and if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is anticipated to be a significant regulatory action and, 
therefore, was subject to review under section 6(b) of E.O. 12866, 
Regulatory Planning and Review, dated September 30, 1993. This proposed 
rule is not anticipated to be a major rule under 5 U.S.C. 804.

III. Congressional Review Act

    This proposed rule is not a major rule under 5 U.S.C. 804(2). 
Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 
1996 (codified at 5 U.S.C. 801-808), also known as the Congressional 
Review Act or CRA, generally provides that before a rule may take 
effect, the agency promulgating the rule must submit a rule report, 
which includes a copy of the rule, to each House of the Congress and to 
the Comptroller General of the United States. The GSA will submit a 
report containing this proposed rule and other required information to 
the U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States. A major rule under the CRA cannot take 
effect until 60 days after it is published in the Federal Register. 
OIRA has determined that this proposed rule is not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

IV. Regulatory Flexibility Act

    GSA does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq because 
it applies only to Federal agencies and employees and it affects less 
than one percent of all federal employees' relocations. The 
administrative changes provide further clarification with no impact to 
agencies.
    Therefore, an Initial Regulatory Flexibility Analysis has not been 
performed. GSA invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities.
    GSA will also consider comments from small entities concerning the 
existing regulations in subparts affected by the proposed rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FTR Case 2020-302-1), 
in correspondence.

V. 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 (OMB) under 44 U.S.C. 3501, et seq.

List of Subjects in 41 CFR Parts 300-3, 302-2, 302-3, 302-12, 302-
15, and 302-17

    Government employees, Income taxes, Travel and transportation 
expenses.

Krystal J. Brumfield,
Associate Administrator, Office of Government-wide Policy.

    Therefore, GSA proposes amending 41 CFR parts 300-3, 302-2, 302-3, 
302-12, 302-15, and 302-17 as set forth below:

PART 300-3--GLOSSARY OF TERMS

0
1. The authority citation for 41 CFR part 300-3 continues to read as 
follows:

    Authority:  5 U.S.C. 5707; 40 U.S.C. 121(c); 49 U.S.C. 40118; 5 
U.S.C. 5738; 5 U.S.C. 5741-5742; 20 U.S.C. 905(a); 31 U.S.C. 1353; 
E.O. 11609, as amended, 3 CFR, 1971-1975 Comp., p. 586; Office of 
Management and Budget Circular No. A-126, revised May 22, 1992.

0
2. Amend Sec.  300-3.1 by revising the heading of the definition of 
``Relocation service company (RSC)'' and the first sentence to read as 
follows:


Sec.  300-3.1   What do the following terms mean?

* * * * *
    Relocation services company (RSC)--A third-party supplier under 
contract with an agency to assist an eligible individual who relocates. 
* * *
* * * * *

[[Page 31661]]

PART 302-2--EMPLOYEES ELIGIBILITY REQUIREMENTS

0
3. The authority citation for 41 CFR part 302-2 continues to read as 
follows:

    Authority:  5 U.S.C. 5738; 20 U.S.C. 905(a).

0
4. Revise Sec.  302-2.1 to read as follows:


Sec.  302-2.1   When may I begin my relocation?

    You may begin your relocation only after your agency has approved 
your travel authorization (TA) in writing (paper or electronic).
0
5. Revise Sec.  302-2.13 to read as follows:


Sec.  302-2.13   What is a service agreement?

    A service agreement is a written and signed agreement between you 
and your agency. The service agreement states that you will remain in 
the service of the Government, after you have relocated, for a period 
of time as specified in Sec.  302-2.14. A service agreement must also 
include the duplicate reimbursement disclosure statement specified in 
Sec. Sec.  302-2.21, 302-2.22, and 302-2.100(g).
    Note 1 to Sec.  302-2.13. A service agreement is not required 
for a ``last move home'' relocation, a temporary change of station, 
or separation from Government service.
0
6. Revise Sec.  302-2.14 to read as follows.


Sec.  302-2.14   Am I required to sign a service agreement for an 
appointment or transfer CONUS or OCONUS, renewal agreement travel, or 
assignment under GETA, and what is the minimum period of service?

    Yes, you are required to sign a service agreement for appointment 
or transfer CONUS or OCONUS, renewal agreement travel, or assignment 
under GETA. The minimum periods of service are:
    (a) Within CONUS for a period of service of not less than 12 months 
following the effective date of your appointment or transfer;
    (b) OCONUS for an agreed upon period of service of not more than 36 
months or less than 12 months following the effective date of your 
appointment or transfer;
    (c) Department of Defense Overseas Dependent School System teachers 
for a period of not less than one school year as determined under 
chapter 25 of Title 20, United States Code;
    (d) For renewal agreement travel, a period of not less than 12 
months from the date of return to the same or different overseas 
official station; and
    (e) For assignment under GETA, not less than three times the length 
of the training period as prescribed by the head of your agency.
0
7. Revise Sec.  302-2.17 to read as follows.


Sec.  302-2.17   Must I sign a service agreement for a ``last move 
home'' relocation or separation from Government service?

    No, you do not need to sign a service agreement for a ``last move 
home'' relocation or separation from Government service.
0
8. Revise Sec.  302-2.101 to read as follows:


Sec.  302-2.101   When may we authorize reimbursement for relocation 
expenses?

    You may authorize reimbursement for relocation expenses:
    (a) When you have determined that an eligible individual's 
relocation is in the best interest of the Government as specified in 
Sec.  302-1.1; and
    (b) Only after an eligible individual has signed a service 
agreement to remain in service for the period specified in Sec.  302-
2.14.

PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE

0
9. The authority citation for 41 CFR part 302-3 continues to read as 
follows:

    Authority:  5 U.S.C. 5738; 20 U.S.C. 905(a).


Sec.  302-3.2   [Amended]

0
10. Amend Sec.  302-3.2 by:
0
A. Revise the section heading and the first sentence of the 
introductory paragraph.
0
B. Revise Tables A and B. The revisions read as follows:


Sec.  302-3.2   As a new appointee or student trainee what relocation 
expenses may my agency pay or reimburse me for incident to an 
assignment to my first official station?

    As a new appointee or student trainee assigned to your first 
official station, your agency may pay or reimburse you the relocation 
expenses indicated for the type of assignment in Tables A and B of this 
section. * * *

  Table A--Assigned to First Official Station in the Continental United
                             States (CONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee &          1. Shipment of privately owned
 immediate family member(s) (part 302-4   vehicle (POV) (part 302-9 of
 of this chapter).                        this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
 4 of this chapter).                      company (part 302-12 of this
                                          chapter).
3. Transportation & temporary storage    ...............................
 of household goods (part 302-7 of this
 chapter).
4. Extended storage of household goods   ...............................
 (part 302-8 of this chapter).\1\
5. Transportation of a mobile home or    ...............................
 boat used as a primary residence in
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
6. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 4: Only when assigned to a designated
  isolated official station in CONUS.


   Table B--Assigned to First Official Station Outside the Continental
                         United States (OCONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation of employee &          1. Shipment of privately owned
 immediate family member(s) (part 302-4   vehicle (POV) (part 302-9 of
 of this chapter).                        this chapter).

[[Page 31662]]

 
2. Per diem employee only (part 302-4).  2. Temporary quarters
                                          subsistence expense (TQSE) is
                                          not authorized in a foreign
                                          area; however, you may be
                                          entitled to the following
                                          under the Department of State
                                          Standardized Regulations
                                          (Government Civilians--Foreign
                                          Areas) which is available from
                                          the Superintendent of
                                          Documents, Washington, DC
                                          20402.
                                         (a) Foreign Transfer Allowance
                                          (FTA) (Subsistence Expense)
                                          for quarters occupied
                                          temporarily before departure
                                          from the 50 states or the
                                          District of Columbia for an
                                          official station in a foreign
                                          area incident to a permanent
                                          change of station and travel
                                          to first official station
                                          overseas.
                                         (b) Temporary quarters
                                          subsistence allowance ((TQSA)
                                          when a transfer is authorized
                                          to a foreign area.
                                         (c) The miscellaneous expense
                                          portion of the FTA is
                                          authorized incident to first
                                          official station travel to a
                                          foreign area.
3. Transportation & temporary storage    3. Use of a relocation services
 of household goods (part 302-7 of this   company (part 302-12 of this
 chapter).                                chapter).
4. Extended storage of household goods   ...............................
 (part 302-8 of this chapter).
5. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------

0
11. Amend Part 302-3 by revising the heading to Subpart B to read as 
follows:

Subpart B--Transferred Employees and Other Relocated Employees


Sec.  302-3.101   [Amended]

0
12. Amend Sec.  302-3.101 by:
0
a. Amending the section heading by adding the words ``or other 
relocated employee'' after the words ``transferred employee'';
0
b. Amending the first sentence of the introductory text by adding the 
words ``or other relocated employee'' after the words ``transferred 
employee''; and
0
c. Amending the second sentence of the introductory text by removing 
the word ``transfer'' and adding the word ``relocation'' in its place.
0
d. Revising Tables A, B, C, D, F, G, and I.
    The revisions read as follows:


Sec.  302-3.101   As a transferred employee or other relocated employee 
what relocation allowances must my agency pay or reimburse to me?

* * * * *

  Table A--Transfer Between Official Stations in the Continental United
                             States (CONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Househunting per diem &
 employee & immediate family member(s)    transportation, employee &
 (part 302-4 of this chapter).            spouse only (part 302-5 of
                                          this chapter).
2. Miscellaneous moving expense (part    2. Temporary quarters
 302-16 of this chapter).                 subsistence expense (TQSE)
                                          (part 302-6 of this chapter).
3. Sell or buy residence transactions    3. Shipment of privately owned
 or lease termination expenses (part      vehicle (POV) (part 302-9 of
 302-11 of this chapter).                 this chapter).
4. Transportation & temporary storage    4. Use of a relocation services
 of household goods (part 302-7 of this   company (part 302-12 of this
 chapter).                                chapter).
5. Extended storage of household goods   5. Property management services
 (part 302-8 of this chapter). \1\.       (part 302-15 of this chapter)
6. Transportation of a mobile home or    6. Home marketing incentives
 boat used as a primary residence in      (part 302-14 of this chapter).
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).\2\
7. Relocation income tax allowance       ...............................
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1, Item 5: Only when assigned to a designated
  isolated official station in CONUS.
\2\ Note to Column 1, Item 6: Mobile homes may be shipped within CONUS,
  within Alaska, and through Canada en route between Alaska and CONUS or
  through Canada between one CONUS point and another (e.g., between
  Buffalo, NY and Detroit, MI).


     Table B--Transfer From CONUS to an Official Station Outside the
                   Continental United States (OCONUS)
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation & per diem for         1. Temporary quarters
 employee & immediate family member(s)    subsistence expense (TQSE)
 (part 302-4 of this chapter).            when transfer is to a non-
                                          foreign area. In foreign areas
                                          you may be entitled to the
                                          following under the Department
                                          of State Standardized
                                          Regulations (DSSR) (Government
                                          Civilians--Foreign Areas):
                                         (a) A Foreign Transfer
                                          Allowance (FTA) for quarters
                                          occupied temporarily before
                                          departure from the 50 states
                                          or the District of Columbia
                                          for an official station in a
                                          foreign area incident to a
                                          permanent change of station
                                          and travel to first official
                                          station overseas.

[[Page 31663]]

 
                                         (b) Temporary quarters
                                          subsistence allowance (TQSA).
2. Miscellaneous expense allowance       2. Property management services
 (part 302-16 of this chapter).           (part 302-15 of this chapter).
3. Transportation & temporary storage    3. Shipment of a privately
 of household goods (part 302-7 this      owned vehicle (part 302-9 of
 chapter).                                this chapter).
4. Extended storage of household goods   4. Use of relocation service
 (part 302-8 of this chapter).            companies (part 302-12 of this
                                          chapter).
                                         5. Home marketing incentives
                                          when transfer is to a non-
                                          foreign area (part 302-14 of
                                          this chapter).
6. Relocation income tax allowance       6. Househunting per diem &
 (RITA) (part 302-17 of this chapter).    transportation, employee &
                                          spouse only when transfer is
                                          to a non-foreign area (part
                                          302-5 of this chapter.
------------------------------------------------------------------------


Table C--Transfer From OCONUS Official Station to an Official Station in
                                  CONUS
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
(1) Transportation & per diem for        (1) Shipment of a privately
 employee & immediate family member(s)    owned vehicle (part 302-9 of
 (part 302-4 of this chapter).            this chapter).
(2) Miscellaneous expense allowance      (2) Temporary quarters
 (part 302-16 of this chapter).           subsistence expense (TQSE)
                                          (part 302-6 of this
                                          chapter).\2\
(3) Sell & buy residence transaction     (3) Use of a relocation
 expenses or lease termination expenses   services company (part 302-12
 (part 302-11 of this chapter)\1\.        of this chapter).
(4) Transportation & temporary storage   (4) Home marketing incentives
 of household goods (part 302-7 of this   when transfer is from a non-
 chapter).                                foreign area (part 302-14 of
                                          this chapter).
(5) Extended storage of household goods
 only when assigned to a designated
 isolated official station in CONUS
 (part 302-8 of this chapter).
(6) Relocation income tax allowance
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Column 1 Item 3: Allowed when old and new official stations
  are located in the United States. Also allowed when instead of being
  returned to the former official station in the United States, an
  employee is transferred in the interest of the Government to a
  different official station in the United States than from the official
  station from which transferred when assigned to the foreign official
  station.
\2\ Note to Column 2, Item 2: A TQSA under the DSSR may be authorized
  preceding final departure subsequent to the necessary vacating of
  residence quarters.


           Table D--Transfer Between OCONUS Official Stations
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
(1) Transportation & per diem for        (1) Shipment of a privately
 employee & immediate family member(s)    owned vehicle (POV) (part 302-
 (part 302-4 of this chapter).            09 of this chapter).
(2) Transportation & temporary storage   (2) Property management
 of household goods (part 302-7 of this   services (part 302-15 of this
 chapter).                                chapter).
(3) Miscellaneous expense allowance      (3) Househunting per diem &
 (part 302-16 of this chapter).           transportation for employee &
                                          spouse only when transfer is
                                          between non-foreign areas
                                          (part 302-5 of this chapter).
(4) Extended storage of household goods  (4) Temporary quarters
 (part 302-8 of this chapter).            subsistence expense (TQSE)
                                          when transfer is to or between
                                          non-foreign areas (part 302-6
                                          of this chapter).\1\
(5) Sell & buy residence transaction     (5) Use of a relocation
 expenses or lease termination expenses   services company (part 302-12
 when transfer is between non-foreign     of this chapter).
 areas (part 302-11 of this chapter).
(6) Relocation income tax allowance      (6) Home marketing incentives
 (RITA) (part 302-17 of this chapter).    when transfer is between non-
                                          foreign areas (part 302-14 of
                                          this chapter).
------------------------------------------------------------------------
\1\Note to Column 2, item 4: TQSA may be authorized under the DSSR.


     Table F--Return From OCONUS Official Station to Place of Actual
                        Residence for Separation
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee &         1. Shipment of a privately
 immediate family member(s) (part 302-4   owned vehicle (POV) (part 302-
 of this chapter).                        9 of this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
 4 of this chapter).                      company (part 302-12 of this
                                          chapter).
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).

[[Page 31664]]

 
4. Relocation income tax allowance
 (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
Note to Table F: This table also applies to an employee returning to the
  CONUS to transfer to a new duty station after completing a tour of
  duty OCONUS if relocation expenses have not been authorized to the new
  duty station. In that case, and unless otherwise agreed to, the
  employee is only eligible for return expenses from the OCONUS duty
  station to the employee's actual residence, payable by the losing
  agency.


 Table G--Last Move Home for SES Career Appointees Upon Separation From
                           Government Service
------------------------------------------------------------------------
                                         Column 2--Relocation allowances
  Column 1--Relocation allowances that    that agency has discretionary
      agency must pay or reimburse        authority to pay or reimburse
------------------------------------------------------------------------
1. Transportation for employee &         1. Shipment of privately owned
 immediate family member(s) (part 302-4   vehicle (POV) (part 302-9,
 of this chapter).                        subpart B of this chapter).
2. Per diem for employee only (part 302- 2. Use of a relocation services
 4 of this chapter).                      company (part 302-12 of this
                                          chapter).
3. Transportation & temporary storage
 of household goods (part 302-7 of this
 chapter).
4. Transportation of a mobile home or
 boat used as a primary residence in
 lieu of the transportation of
 household goods (part 302-10 of this
 chapter).
5. Relocation income tax allowance
 (RITA) (part 302-17 of this chapter)..
------------------------------------------------------------------------

* * * * *

     Table I--Assignment Under the Government Employees Training Act
                           [5 U.S.C. 4109] \1\
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
1. Transportation of employee & immediate family member(s) (part 302-4
 of this chapter).
2. Per Diem for employee (part 302-4 of this chapter).
3. Movement of household goods & temporary storage (part 302-7 of this
 chapter).
4. Relocation income tax allowance (RITA) (part 302-17 of this chapter).
------------------------------------------------------------------------
\1\ Note to Table I: The allowances listed in Table I may be authorized
  in lieu of per diem or actual expense allowances. This is not
  considered a permanent change of station.

Sec.  302-3.300  [Amended]

0
13. Amend Sec.  302-3.300 by adding in the introductory paragraph the 
words ``(see Table F in Sec.  302-3.101 for a summary of allowances)'' 
after the word ``goods''.


Sec.  302-3.306  [Amended]

0
14. Amend Sec.  302-3.306 by removing from the introductory paragraph 
the words ``item 7 of Tables A and C in'' and adding the words ``Table 
G to'' in its place.
0
15. Amend Sec.  302-3.427 by:
0
a. Removing in paragraph (f) the word ``and'' at the end of the 
paragraph;
0
b. Removing in paragraph (g) the ``.'' from the end of the paragraph 
and adding the `` ; and'' in its place; and
0
c. Adding a new paragraph (h).
    The addition reads as follows:


Sec.  302-3.427  What relocation allowances may my agency pay when I am 
permanently assigned to my temporary official station?

* * * * *
    (h) Relocation income tax allowance (RITA) under part 302-17 of 
this chapter.
0
16. Revise Sec.  302-3.503 to read as follows:


Sec.  302-3.503  Must we require employees to sign a service agreement?

    Yes, you must require employees to sign a service agreement if the 
employee is receiving reimbursement for relocation travel expenses, 
except as provided in Sec. Sec.  302-2.17, 302-3.300, and 302-3.410.
0
17. Amend Sec.  302-3.505 by revising paragraphs (a) through (d) and 
adding paragraph (e) to read as follows:


Sec.  302-3.505  How long must we require an employee to agree to the 
terms of a service agreement?

* * * * *

[[Page 31665]]

    (a) Within CONUS for a period of service of not less than 12 months 
following the effective date of appointment or transfer;
    (b) OCONUS for an agreed upon period of service of not more than 36 
months or less than 12 months following the effective date of 
appointment or transfer;
    (c) Department of Defense Overseas Dependent School System teachers 
for a period of not less than one school year as determined under 
chapter 25 of Title 20, United States Code;
    (d) For renewal agreement travel, a period of not less than 12 
months from the date of return to the same or different overseas 
official station; and
    (e) For assignment under GETA, not less than three times the length 
of the training period as prescribed by the head of the agency.

PART 302-12--USE OF A RELOCATION SERVICES COMPANY

0
18. The authority citation for 41 CFR part 302-12 continues to read as 
follows:

    Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).


Sec.  302-12.100  [Amended]

0
19. Amend Sec.  302-12.100 by removing from the first sentence the 
words ``a transferred employee in relocating to the new official 
station'' and adding the words ``an employee who relocates.'' in its 
place.

PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES

0
20. The authority citation for 41 CFR part 302-15 continues to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C 905(a); E.O. 11609, as 
amended, 3 CFR, 1971-1975 Comp., p 586.


Sec.  302-15.13  [Amended]

0
21. Amend Sec.  302-15.13 by removing in the first sentence the word 
``service'' and adding the word ``services'' in its place.

PART 302-17--TAXES ON RELOCATION EXPENSES

0
22. The authority citation for 41 CFR part 302-17 continues to read as 
follows:

    Authority:  5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, as 
amended, 3 CFR, 1971-1975 Comp., p. 586.

0
23. Amend Sec.  302-17.1 by revising the definition for ``Relocation 
income tax allowance (RITA)'' to read as follows:


Sec.  302-17.1   What special terms apply to this Part?

* * * * *
    Relocation income tax allowance (RITA) means the payment to 
individuals to cover the difference between the withholding tax 
allowance (WTA), if any, and the actual income tax liability incurred 
by the individual, and such individual's spouse (if filing jointly), as 
a result of their taxable relocation benefits, RITA is paid whenever 
the actual income tax liability exceeds the WTA and applies to any 
travel, transportation, and relocation expenses reimbursed or furnished 
in kind pursuant to chapter 57, subchapter II of title 5 U.S.C. and 5 
U.S.C. chapter 41.
* * * * *


Sec.  302-17.3  [Amended]

0
24. Amend Sec.  302-17.3 by removing the words ``transferred 
employees'' and adding the words ``employees or individuals eligible 
for relocation expense allowances under Sec.  302-1.1'' in its place.
0
25. Amend Sec.  302-17.5 by revising the second sentence and adding a 
third sentence to read as follows:


Sec.  302-17.5  Who is eligible for the WTA and the RITA?

    * * * You are eligible for the WTA and the RITA if you are 
relocating in the interest of the Government, and your agency's 
reimbursements to you for relocation expenses result in you being 
liable for additional income taxes. Eligibility for WTA and RITA 
includes, among others, transferred employees, appointments (new or 
political), assignments under the Government Employees Training Act, 
and those returning from an overseas assignment for the purpose of 
separation from Government service.


Sec.  302-17.6  [Removed]

0
26. Remove Sec.  302-17.6.


Sec. Sec.  302-17.7 through 302-17.13  [Redesignated as Sec. Sec.  302-
17.6 through 302-17.12]

0
27. Redesignate Sec. Sec.  302-17.7 through 302-17.13 as Sec. Sec.  
302-17.6 through 302-17.12.

[FR Doc. 2021-11086 Filed 6-14-21; 8:45 am]
BILLING CODE 6820-14-P