SECTION 5. HIGH-LOW

SUBSTANTIATION METHOD

.01 General rule . If a payor pays a per diem allowance in lieu of reimbursing actual expenses for lodging, meal, and incidental expenses incurred or to be incurred by an employee for travel away from home and the payor uses the high-low substantiation method described in this section 5 for travel within CONUS, the amount of the expenses that is deemed substantiated for each calendar day is equal to the lesser of the per diem allowance for such day or the amount computed at the rate set forth in section 5.02 of this revenue procedure for the locality of travel for such day (or partial day, see section 6.04 of this revenue procedure). This high-low substantiation method may be used in lieu of the per diem substantiation method provided in section 4.01 of this revenue procedure, but may not be used in lieu of the meals only substantiation method provided in section 4.02 or 4.03 of this revenue procedure. .02 Specific high-low rates . The per diem rate set forth in this section 5.02 is $201 for travel to any “high-cost locality” specified in section 5.03 of this revenue procedure, or $124 for travel to any other locality within CONUS. Whichever per diem rate applies, it is applied as if it were the Federal per diem rate for the locality of travel. For purposes of applying the high-low substantiation method and the § 274(n) limitation on meal expenses (see section 6.05 of this revenue procedure), the Federal M&IE rate shall be treated as $42 for a high-cost locality and $34 for any other locality within CONUS.

.03 High-cost localities . The following localities have a Federal per diem rate of $163 or more for all or part of the calendar year, and are high-cost localities for all of the calendar year or the portion of the calendar year specified in parenthesis under the key city name:

January 10, 2000 282 2000–2 I.R.B.

Key city County or other defined location

California

San Francisco San Francisco Sunnyvale/Palo Alto/San Jose Santa Clara Tahoe City Placer

Colorado

Aspen Pitkin (December 1-June 30) Silverthorne/Keystone Summit Telluride San Miguel (November 1-March 31) Vail Eagle (December 1-March 31)

District of Columbia

Washington, D.C. Washington, D.C.; the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington, Fairfax, and Loudoun, in Virginia; and the counties of Montgomery and Prince George’s in Maryland

Florida

Key West Monroe (December 15-April 30)

Idaho

Sun Valley City limits of Sun Valley (June 1-September 30)

Illinois

Chicago Cook and Lake

Maryland

(For the counties of Montgomery and Prince George’s, see District of Columbia) Ocean City Worcester (June 1-September 15)

Massachusetts

Boston Suffolk Cambridge Middlesex County (except Lowell) Martha’s Vineyard Dukes (June 1-September 30)

Michigan

Charlevoix Charlevoix (July 1-September 30) Mackinac Island Mackinac

Montana

Big Sky Gallatin (except West Yellowstone Park)

New Jersey

Cape May Cape May (except Ocean City) (June 1-September 30) Ocean City City limits of Ocean City (June 15-September 15) Piscataway/Bellemead Somerset and Middlesex Princeton City limits of Princeton Union County Union County

2000–2 I.R.B. 283 January 10, 2000

New York

The Bronx/Brooklyn/Queens The boroughs of The Bronx, Brooklyn, and Queens Manhattan Manhattan Nassau County/Great Neck Nassau County Suffolk County Suffolk County White Plains City limits of White Plains

Pennsylvania

Hershey City limits of Hershey (June 1-September 15) Philadelphia Philadelphia

Utah

Park City Summit (December 20-March 31)

Virginia (For the cities of Alexandria, Fairfax, and Falls Church, and the counties of Arlington, Fairfax, and Loudoun, see District of Columbia)

.04 Changes in high-cost localities . The list of high-cost localities in section 5.03 of this revenue procedure differs from the list of high-cost localities in section 5.03 of Rev. Proc. 98-64.

(1) The following localities (generally listed by key cities) have been added to the list of high-cost localities: Santa Clara County, California; Tahoe City, California; Silverthorne/Keystone, Colorado; Prince George’s County, Maryland; Middlesex County, Massachusetts (except the city limits of Lowell); Big Sky, Montana; Bellemead, New Jersey; Middlesex County, New Jersey; Princeton, New Jersey; Nassau County/Great Neck, New York; Suffolk County, New York; and Loudoun County, Virginia.

(2) The portion of the year for which the following are high-cost localities (listed by key cities) has been changed: Aspen, Colorado; Vail, Colorado; Key West, Florida; Sun Valley, Idaho, Ocean City, Maryland; Ocean City, New Jersey; Hershey, Pennsylvania; and Park City, Utah.

(3) The following localities (generally listed by key cities) have been removed from the list of high-cost localities: Gulf Shores, Alabama; Gualala, California; Yosemite National Park, California; Delray Beach, Florida; Jupiter, Florida; Palm Beach, Florida; Singer Island, Florida; Bar Harbor, Maine; Baltimore, Maryland; Stateline, Nevada; Saratoga Springs, New York; Westchester County, New York (except the city limits of White Plains); West Point, New York; Kill Devil Hills, North Carolina; Bala

Cynwyd, Pennsylvania; Newport, Rhode Island; Hilton Head, South Carolina; Myrtle Beach, South Carolina; Wintergreen, Virginia; and Seattle, Washington.