[Federal Register: June 27, 2007 (Volume 72, Number 123)]
[Rules and Regulations]
[Page 35187-35189]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn07-21]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-4
[FTR Amendment 2007-03; FTR Case 2007-301; Docket 2007-0002, Sequence
3]
RIN 3090-AI34
Federal Travel Regulation; Relocation Allowances--Standard
Mileage Rate for Moving Purposes
AGENCY: Office of Governmentwide Policy, General Services
Administration (GSA).
ACTION: Final rule.
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SUMMARY: The General Services Administration (GSA), Office of
Governmentwide Policy (OGP), plans to establish the Internal Revenue
Service (IRS) Standard Mileage Rate for moving purposes as the rate at
which agencies will reimburse an employee for using a privately owned
vehicle (POV) for relocation. The FTR and any corresponding documents
may be accessed at GSA's website at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/ftr.
DATES: Effective Date: September 25, 2007.
FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat (VIR), Room
4035, GS Building, Washington, DC, 20405, (202) 501-4755, for
information pertaining to status or publication schedules. For
clarification of content, contact Mr. Ed Davis, Office of
Governmentwide Policy (M), Office of Travel, Transportation and Asset
Management (MT), General Services Administration at (202) 208-7638 or
e-mail at ed.davis@gsa.gov. Please cite FTR Amendment 2007-03; FTR case
2007-301.
SUPPLEMENTARY INFORMATION:
A. Background
Relocation is an area that continuously evolves because of changes
in the housing market,
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transportation industry, technology, etc. The General Services
Administration (GSA), Office of Governmentwide Policy (OGP), routinely
reviews the relocation regulations to address current Government
relocation needs, to incorporate appropriate private industry policies,
and to implement any best practices that fit well into the Federal
setting.
To help accomplish these goals, GSA created the Relocation Best
Practices Committee (RBPC) in 2002. Many of this Committee's
recommendations were reflected in a proposed rule published in the
Federal Register at 69 FR 68111, November 23, 2004.
The proposed rule included 30 changes; however, this final rule
focuses on only one of those proposed changes, namely adopting the
mileage rate established by the IRS for computing relocation, or
moving, costs for income tax purposes for reimbursing Federal employees
for using their POVs for relocation travel to a new duty station for
PCS. GSA will address the remaining Federal Travel Regulation (FTR)
changes from the proposed rule in one or more future final rule(s).
Section 302-4.300 of the FTR (41 CFR 302-4.300) currently provides
tiered reimbursements for POV use in en route travel to the new duty
station based on the number of occupants. This final rule will
eliminate the tiered rates. Instead, the agency will reimburse the
employee who relocates by POV at the established IRS rate for use of a
car for moving purposes. GSA will publish this rate in an FTR Bulletin
to coincide with updates issued by the IRS. The IRS generally issues
such updates annually, but for special cases, such as Hurricane
Katrina, the IRS may issue updates during the year and GSA will follow
suit.
The IRS allows two methods for computing the standard mileage rates
for use of a car in moving: a single mileage rate or actual expense.
GSA has decided to allow only reimbursement at the single mileage rate,
since this approach is easier to administer and does not involve
collecting and auditing small value receipts.
Many transferees compare the reimbursement rate for using a POV for
temporary duty travel (TDY) to the rate for using a POV for relocation
travel and do not understand why those rates differ. The more generous
rate for using a POV for TDY travel is intended to cover the fixed
costs of operating an automobile, such as depreciation (or lease
payments), insurance, and license and registration fees, as well as the
operating cost. None of these fixed costs are tax deductible as a
moving expense, so none of these fixed costs are included in the moving
rate mileage calculation. The IRS intends the rate for using a POV in
moving to cover only actual operating expenses (e.g., fuel, oil, tolls,
etc.). The IRS then uses the operating costs for a combination of
standard vehicles to calculate the moving rate.
GSA consulted the members of the Executive Relocation Steering
Committee about this change. All members agreed that this adoption of
the single IRS rate is appropriate.
B. Summary of Comments Received and the Issues Involved
GSA received comments from 12 entities on the proposed mileage rate
change that was included in the proposed rule published in the Federal
Register at 69 FR 68111, November 23, 2004. The main thrust of the
comments was that payments to employees driving their automobiles
should not be lowered. This argument was valid in 2004, at the time the
proposed rule was issued. The IRS rate for using an automobile for
relocation at that time was 14 cents per mile, which was lower than any
rate on the FTR chart. The IRS rate for 2007 will be 20 cents per mile,
which means that all drivers regardless of the number of passengers,
will be receiving the equivalent of the highest possible rate in the
current regulation.
Another objection to the proposed rule was that small agencies or
isolated posts might not receive the GSA updates on the mileage rate.
This has not been the case for the TDY mileage rate. Agencies adopt the
TDY mileage rate quickly and accurately when it changes. GSA expects
this to be the same for the relocation mileage rate.
C. Changes to Current FTR
This final rule:
Revises section 302-4.300 to reflect the Internal Revenue
Service single mileage rate for relocation by POV.
Adds section 302-4.303 to disallow the use of the IRS
actual expense rate for relocation in CONUS.
D. Executive Order 12866
This regulation is excepted from the definition of ``regulation''
or ``rule'' under Section 3(d)(3) of Executive Order 12866, Regulatory
Planning and Review, dated September 30, 1993 and, therefore, was not
subject to review under Section 6(b) of that executive order.
E. 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.
F. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FTR do not impose recordkeeping or information collection
requirements, or the collection of information from offerors,
contractors, or members of the public that require the approval of the
Office of Management and Budget under 44 U.S.C. 3501, et seq.
E. Small Business Regulatory Enforcement Fairness Act
This final rule is also exempt from congressional review prescribed
under 5 U.S.C. 801 since it relates solely to agency management and
personnel.
List of Subjects in 41 CFR Part 302-4
Government employees, Relocation, Travel and transportation
Expenses.
Dated: March 19, 2007.
Lurita Doan,
Administrator of General Services.
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For the reasons set out in this preamble, 41 CFR part 302-4 is amended
as set forth below:
PART 302-4--ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION
0
1. The authority citation for 41 CFR part 302-4 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, 1971-1973 Comp., p. 586.
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2. Revise Sec. 302-4.300 to read as follows:
Sec. 302-4.300 What is the POV mileage rate for PCS travel within the
continental United States (CONUS)?
For approved/authorized PCS travel by POV in CONUS, the mileage
reimbursement rate is the same as the moving expense standard mileage
rate established by the Internal Revenue Service (IRS) for moving
expense deductions. See IRS guidance available on the Internet at
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.irs.gov. GSA will publish the rate for mileage reimbursement in an
FTR Bulletin on an intermittent basis to coincide with the rate changes
published by the IRS. You may find the FTR Bulletins at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.gsa.gov/relo
.
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3. Add Sec. 302-4.303 to read as follows:
Sec. 302-4.303 For relocation within the continental United States
(CONUS), may I use the actual expense method of reimbursement instead
of the POV mileage rate specified in Sec. 302-4.300?
No, for a PCS relocation within CONUS involving POV usage, your
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agency will reimburse you at the standard mileage rate specified in
Sec. 302-4.300.
[FR Doc. E7-12433 Filed 6-26-07; 8:45 am]
BILLING CODE 6820-14-S