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Minnesota Legislature

Office of the Revisor of Statutes

HF 958

as introduced - 89th Legislature (2015 - 2016) Posted on 04/27/2015 06:29pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/16/2015

Current Version - as introduced

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A bill for an act
relating to taxation; estate; increasing the exclusion amount; modifying rates;
amending Minnesota Statutes 2014, sections 291.016, subdivision 3; 291.03,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 291.016, subdivision 3, is amended to read:


Subd. 3.

Subtraction.

new text begin(a) new text endThe value of qualified small business property under
section 291.03, subdivision 9, and the value of qualified farm property under section
291.03, subdivision 10, or the result of $5,000,000 minus the amount for the year of death
listed in clauses (1) to deleted text begin(5)deleted text endnew text begin (4)new text end, whichever is less, may be subtracted in computing the
Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than zero:

(1) $1,200,000 for estates of decedents dying in 2014;

(2) deleted text begin$1,400,000deleted text endnew text begin $2,000,000new text end for estates of decedents dying in 2015;

(3) deleted text begin$1,600,000deleted text endnew text begin $3,000,000new text end for estates of decedents dying in 2016;new text begin and
new text end

(4) deleted text begin$1,800,000deleted text endnew text begin $4,000,000new text end for estates of decedents dying in 2017deleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (5) $2,000,000deleted text endnew text begin (b) The subtraction under paragraph (a) does not applynew text end for estates
of decedents dying in 2018 and thereafter.

new text begin (c) For estates of decedents dying after December 31, 2018, the value of the federal
exclusion amount under section 2010 of the Internal Revenue Code may be subtracted
in computing the Minnesota taxable estate, but must not reduce the Minnesota taxable
estate to less than zero. For purposes of this subdivision, the federal exclusion amount
equals the sum of:
new text end

new text begin (1) the basic exclusion amount under section 2010(c)(3) for the year in which the
decedent died; and
new text end

new text begin (2) any deceased spouse unused exclusion amount that is allowed in computing
the federal estate tax of the estate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2014.
new text end

Sec. 2.

Minnesota Statutes 2014, 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 the resulting amount
multiplied 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):

(a) For estates of decedents dying in 2014:

Amount of Minnesota Taxable Estate
Rate of Tax
Not over $1,200,000
None
Over $1,200,000 but not over $1,400,000
nine percent of the excess over $1,200,000
Over $1,400,000 but not over $3,600,000
$18,000 plus ten percent of the excess over
$1,400,000
Over $3,600,000 but not over $4,100,000
$238,000 plus 10.4 percent of the excess
over $3,600,000
Over $4,100,000 but not over $5,100,000
$290,000 plus 11.2 percent of the excess
over $4,100,000
Over $5,100,000 but not over $6,100,000
$402,000 plus 12 percent of the excess over
$5,100,000
Over $6,100,000 but not over $7,100,000
$522,000 plus 12.8 percent of the excess
over $6,100,000
Over $7,100,000 but not over $8,100,000
$650,000 plus 13.6 percent of the excess
over $7,100,000
Over $8,100,000 but not over $9,100,000
$786,000 plus 14.4 percent of the excess
over $8,100,000
Over $9,100,000 but not over $10,100,000
$930,000 plus 15.2 percent of the excess
over $9,100,000
Over $10,100,000
$1,082,000 plus 16 percent of the excess
over $10,100,000

deleted text begin (b) For estates of decedents dying in 2015:
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 $1,400,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000
deleted text end
deleted text begin ten percent of the excess over $1,400,000
deleted text end
deleted text begin Over $3,600,000 but not over $6,100,000
deleted text end
deleted text begin $220,000 plus 12 percent of the excess over
$3,600,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $520,000 plus 12.8 percent of the excess
over $6,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $648,000 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 $784,000 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 $928,000 plus 15.2 percent of the excess
over $9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,080,000 plus 16 percent of the excess
over $10,100,000
deleted text end

deleted text begin (c) For estates of decedents dying in 2016:
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 $1,600,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,600,000 but not over $2,600,000
deleted text end
deleted text begin ten percent of the excess over $1,600,000
deleted text end
deleted text begin Over $2,600,000 but not over $6,100,000
deleted text end
deleted text begin $100,000 plus 12 percent of the excess over
$2,600,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $520,000 plus 12.8 percent of the excess
over $6,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $648,000 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 $784,000 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 $928,000 plus 15.2 percent of the excess
over $9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,080,000 plus 16 percent of the excess
over $10,100,000
deleted text end

deleted text begin (d) 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 $1,800,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,800,000 but not over $2,100,000
deleted text end
deleted text begin ten percent of the excess over $1,800,000
deleted text end
deleted text begin Over $2,100,000 but not over $5,100,000
deleted text end
deleted text begin $30,000 plus 12 percent of the excess over
$2,100,000
deleted text end
deleted text begin Over $5,100,000 but not over $7,100,000
deleted text end
deleted text begin $390,000 plus 12.8 percent of the excess
over $5,100,000
deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000
deleted text end
deleted text begin $646,000 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 $782,000 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 $926,000 plus 15.2 percent of the excess
over $9,100,000
deleted text end
deleted text begin Over $10,100,000
deleted text end
deleted text begin $1,078,000 plus 16 percent of the excess
over $10,100,000
deleted text end

deleted text begin (e)deleted text endnew text begin (b)new text end For estates of decedents dying in deleted text begin2018 and thereafterdeleted text endnew text begin 2015new text end:

Amount of Minnesota Taxable Estate
Rate of Tax
Not over $2,000,000
None
Over $2,000,000 but not over $2,600,000
ten percent of the excess over $2,000,000
Over $2,600,000 but not over $7,100,000
$60,000 plus 13 percent of the excess over
$2,600,000
Over $7,100,000 but not over $8,100,000
$645,000 plus 13.6 percent of the excess
over $7,100,000
Over $8,100,000 but not over $9,100,000
$781,000 plus 14.4 percent of the excess
over $8,100,000
Over $9,100,000 but not over $10,100,000
$925,000 plus 15.2 percent of the excess
over $9,100,000
Over $10,100,000
$1,077,000 plus 16 percent of the excess
over $10,100,000

new text begin (c) For estates of decedents dying in 2016:
new text end

new text begin Amount of Minnesota Taxable Estate
new text end
new text begin Rate of Tax
new text end
new text begin Not over $3,000,000
new text end
new text begin None
new text end
new text begin Over $3,000,000 but not over $8,100,000
new text end
new text begin 14 percent of the excess over $3,000,000
new text end
new text begin Over $8,100,000 but not over $9,100,000
new text end
new text begin $714,000 plus 14.4 percent of the excess
over $8,100,000
new text end
new text begin Over $9,100,000 but not over $10,100,000
new text end
new text begin $858,000 plus 15.2 percent of the excess
over $9,100,000
new text end
new text begin Over $10,100,000
new text end
new text begin $1,010,000 plus 16 percent of the excess
over $10,100,000
new text end

new text begin (d) For estates of decedents dying in 2017:
new text end

new text begin Amount of Minnesota Taxable Estate
new text end
new text begin Rate of tax
new text end
new text begin Not over $4,000,000
new text end
new text begin None
new text end
new text begin Over $4,000,000 but not over $9,100,000
new text end
new text begin 15 percent of the excess over $4,000,000
new text end
new text begin Over $9,100,000 but not over $10,100,000
new text end
new text begin $765,000 plus 15.2 percent of the excess
over $9,100,000
new text end
new text begin Over $10,100,000
new text end
new text begin $917,000 plus 16 percent of the excess over
$10,100,000
new text end

new text begin (e) For estates of decedents dying in 2018:
new text end

new text begin Amount of Minnesota Taxable Estate
new text end
new text begin Rate of Tax
new text end
new text begin Not over $5,000,000
new text end
new text begin None
new text end
new text begin Over $5,000,000
new text end
new text begin 16 percent of the excess over $5,000,000
new text end

new text begin (f) For estates of decedents dying in 2019 and thereafter, 16 percent of the amount
of the Minnesota taxable estate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2014.
new text end