Minnesota Legislature
HF 896
as introduced - 93rd Legislature (2023 - 2024) Posted on 01/25/2023 12:43pm
Current Version - as introduced
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A bill for an act
relating to taxation; estate; providing for portability of the deceased spousal unused
exclusion amount; amending Minnesota Statutes 2022, sections 289A.10,
subdivision 1; 291.016, subdivision 3; 291.03, subdivision 1, by adding a
subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 289A.10, subdivision 1, is amended to read:
Subdivision 1.
Return required.
new text begin (a) new text end In the case of a decedent who has an interest in
property with a situs in Minnesota, the personal representative must submit a Minnesota
estate tax return to the commissioner, on a form prescribed by the commissioner, if:
(1) a federal estate tax return is required to be filed; or
(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
section 2001(b) of the Internal Revenue Code, made within three years of the date of the
decedent's death exceeds deleted text begin $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
deleted text end deleted text begin estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
in 2018; $2,700,000 for estates of decedents dying in 2019; anddeleted text end $3,000,000 deleted text begin for estates of
decedents dying in 2020 and thereafterdeleted text end .
new text begin (b) new text end The return must contain a computation of the Minnesota estate tax due. The return
must be signed by the personal representative.
new text begin
(c) The return may include an election, as provided in section 291.03, subdivision 1e,
to allow a decedent's surviving spouse to take into account the decedent's deceased spousal
unused exclusion amount.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after June
30, 2022.
new text end
Sec. 2.
Minnesota Statutes 2022, section 291.016, subdivision 3, is amended to read:
Subd. 3.
Subtraction.
(a) deleted text begin For estates of decedents dying after December 31, 2016,deleted text end A
subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
(1) deleted text begin thedeleted text end new text begin annew text end exclusion amount deleted text begin for the year of death under paragraph (b)deleted text end new text begin of $3,000,000new text end ;
and
deleted text begin
(2) the lesser of:
deleted text end
deleted text begin (i)deleted text end new text begin (2)new text end the value of qualified small business property under section 291.03, subdivision
9, and the value of qualified farm property under section 291.03, subdivision 10deleted text begin ; ordeleted text end new text begin , up to
$2,000,000.
new text end
deleted text begin
(ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
deleted text end
deleted text begin
(b) The following exclusion amounts apply for the year of death:
deleted text end
deleted text begin
(1) $2,100,000 for decedents dying in 2017;
deleted text end
deleted text begin
(2) $2,400,000 for decedents dying in 2018;
deleted text end
deleted text begin
(3) $2,700,000 for decedents dying in 2019; and
deleted text end
deleted text begin
(4) $3,000,000 for decedents dying in 2020 and thereafter.
deleted text end
new text begin
(b) In the case of a decedent that is a surviving spouse there is an additional subtraction
allowed in computing the Minnesota taxable estate, a deceased spousal unused exclusion
amount, which is equal to the lesser of:
new text end
new text begin
(1) $3,000,000; or
new text end
new text begin
(2) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last
predeceased spouse of the decedent, but not including in the taxable estate property described
in section 291.03, subdivisions 9 and 10, but in no case less than zero.
new text end
(c) The subtraction under this subdivision must not reduce the Minnesota taxable estate
to less than zero.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after June
30, 2022.
new text end
Sec. 3.
Minnesota Statutes 2022, section 291.03, subdivision 1, is amended to read:
Subdivision 1.
Tax amount.
The tax imposed must be computed by applying to the
Minnesota taxable estate the following schedule of rates and then new text begin multiplying new text end the resulting
amount deleted text begin multiplieddeleted text end by a fraction, not greater than one, the numerator of which is the value
of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2,
clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate
plus the value of gifts under section 291.016, subdivision 2, clause (3):
deleted text begin
(a) For estates of decedents dying in 2017:
deleted text end
|
deleted text begin
Amount of Minnesota Taxable Estate deleted text end |
deleted text begin
Rate of Tax deleted text end |
|
deleted text begin
Not over $5,100,000 deleted text end |
deleted text begin
12 percent deleted text end |
|
deleted text begin
Over $5,100,000 but not over $7,100,000 deleted text end |
deleted text begin
$612,000 plus 12.8 percent of the excess over $5,100,000 deleted text end |
|
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Over $7,100,000 but not over $8,100,000 deleted text end |
deleted text begin
$868,000 plus 13.6 percent of the excess over $7,100,000 deleted text end |
|
deleted text begin
Over $8,100,000 but not over $9,100,000 deleted text end |
deleted text begin
$1,004,000 plus 14.4 percent of the excess over $8,100,000 deleted text end |
|
deleted text begin
Over $9,100,000 but not over $10,100,000 deleted text end |
deleted text begin
$1,148,000 plus 15.2 percent of the excess over $9,100,000 deleted text end |
|
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Over $10,100,000 deleted text end |
deleted text begin
$1,300,000 plus 16 percent of the excess over $10,100,000 deleted text end |
deleted text begin
(b) For estates of decedents dying in 2018 and thereafter:
deleted text end
| Amount of Minnesota Taxable Estate |
Rate of Tax |
| Not over $7,100,000 |
13 percent |
| Over $7,100,000 but not over $8,100,000 |
$923,000 plus 13.6 percent of the excess over $7,100,000 |
| Over $8,100,000 but not over $9,100,000 |
$1,059,000 plus 14.4 percent of the excess over $8,100,000 |
| Over $9,100,000 but not over $10,100,000 |
$1,203,000 plus 15.2 percent of the excess over $9,100,000 |
| Over $10,100,000 |
$1,355,000 plus 16 percent of the excess over $10,100,000 |
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2022, section 291.03, is amended by adding a subdivision to
read:
new text begin Subd. 1e. new text end
new text begin
Election of portability of deceased spousal unused exclusion amounts;
election irrevocable; deemed elections.
new text end
new text begin
(a) A personal representative of a decedent's estate
may elect, on a return required under section 289A.10, subdivision 1, to allow a decedent's
surviving spouse to take into account the decedent's deceased spousal unused exclusion
amount, as provided in section 291.016, subdivision 3, paragraph (b).
new text end
new text begin
(b) In order for a surviving spouse to take into account the decedent's deceased spousal
unused exclusion amount as provided in section 291.016, subdivision 3, paragraph (b), a
personal representative of a decedent's estate must file a return and make the portability
election under paragraph (a). The return is subject to the same provisions as a return required
under section 289A.10, subdivision 1.
new text end
new text begin
(c) An election under paragraph (a) or (b) is irrevocable. The personal representative of
a decedent's estate must state affirmatively on the return that the decedent's estate is electing
portability. The commissioner may prescribe the form of the election on the return.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for estates of decedents dying after June
30, 2022.
new text end