[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]



41 CFR Part 302-4

[FTR Amendment 2007-03; FTR Case 2007-301; Docket 2007-0002, Sequence 
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.


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 


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 
    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 
    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 

List of Subjects in 41 CFR Part 302-4

    Government employees, Relocation, Travel and transportation 

    Dated: March 19, 2007.
Lurita Doan,
Administrator of General Services.

For the reasons set out in this preamble, 41 CFR part 302-4 is amended 
as set forth below:


1. The authority citation for 41 CFR part 302-4 continues to read as 

    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.

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

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]