Minnesota Legislature
HF 958
as introduced - 89th Legislature (2015 - 2016) Posted on 04/27/2015 06:29pm
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.
(a) 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 10, or the result of $5,000,000 minus the amount for the year of death
listed in clauses (1) to (5) (4), 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) $1,400,000 $2,000,000 for estates of decedents dying in 2015;
(3) $1,600,000 $3,000,000 for estates of decedents dying in 2016; and
(4) $1,800,000 $4,000,000 for estates of decedents dying in 2017; and.
(5) $2,000,000 (b) The subtraction under paragraph (a) does not apply for estates
of decedents dying in 2018 and thereafter.
(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:
(1) the basic exclusion amount under section 2010(c)(3) for the year in which the
decedent died; and
(2) any deceased spouse unused exclusion amount that is allowed in computing
the federal estate tax of the estate.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2014.
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 |
(b) For estates of decedents dying in 2015:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $1,400,000 |
None |
|
Over $1,400,000 but not over $3,600,000 |
ten percent of the excess over $1,400,000 |
|
Over $3,600,000 but not over $6,100,000 |
$220,000 plus 12 percent of the excess over $3,600,000 |
|
Over $6,100,000 but not over $7,100,000 |
$520,000 plus 12.8 percent of the excess over $6,100,000 |
|
Over $7,100,000 but not over $8,100,000 |
$648,000 plus 13.6 percent of the excess over $7,100,000 |
|
Over $8,100,000 but not over $9,100,000 |
$784,000 plus 14.4 percent of the excess over $8,100,000 |
|
Over $9,100,000 but not over $10,100,000 |
$928,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$1,080,000 plus 16 percent of the excess over $10,100,000 |
(c) For estates of decedents dying in 2016:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $1,600,000 |
None |
|
Over $1,600,000 but not over $2,600,000 |
ten percent of the excess over $1,600,000 |
|
Over $2,600,000 but not over $6,100,000 |
$100,000 plus 12 percent of the excess over $2,600,000 |
|
Over $6,100,000 but not over $7,100,000 |
$520,000 plus 12.8 percent of the excess over $6,100,000 |
|
Over $7,100,000 but not over $8,100,000 |
$648,000 plus 13.6 percent of the excess over $7,100,000 |
|
Over $8,100,000 but not over $9,100,000 |
$784,000 plus 14.4 percent of the excess over $8,100,000 |
|
Over $9,100,000 but not over $10,100,000 |
$928,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$1,080,000 plus 16 percent of the excess over $10,100,000 |
(d) For estates of decedents dying in 2017:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $1,800,000 |
None |
|
Over $1,800,000 but not over $2,100,000 |
ten percent of the excess over $1,800,000 |
|
Over $2,100,000 but not over $5,100,000 |
$30,000 plus 12 percent of the excess over $2,100,000 |
|
Over $5,100,000 but not over $7,100,000 |
$390,000 plus 12.8 percent of the excess over $5,100,000 |
|
Over $7,100,000 but not over $8,100,000 |
$646,000 plus 13.6 percent of the excess over $7,100,000 |
|
Over $8,100,000 but not over $9,100,000 |
$782,000 plus 14.4 percent of the excess over $8,100,000 |
|
Over $9,100,000 but not over $10,100,000 |
$926,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$1,078,000 plus 16 percent of the excess over $10,100,000 |
(e) (b) For estates of decedents dying in 2018 and thereafter 2015:
| 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 |
(c) For estates of decedents dying in 2016:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $3,000,000 |
None |
|
Over $3,000,000 but not over $8,100,000 |
14 percent of the excess over $3,000,000 |
|
Over $8,100,000 but not over $9,100,000 |
$714,000 plus 14.4 percent of the excess over $8,100,000 |
|
Over $9,100,000 but not over $10,100,000 |
$858,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$1,010,000 plus 16 percent of the excess over $10,100,000 |
(d) For estates of decedents dying in 2017:
|
Amount of Minnesota Taxable Estate |
Rate of tax |
|
Not over $4,000,000 |
None |
|
Over $4,000,000 but not over $9,100,000 |
15 percent of the excess over $4,000,000 |
|
Over $9,100,000 but not over $10,100,000 |
$765,000 plus 15.2 percent of the excess over $9,100,000 |
|
Over $10,100,000 |
$917,000 plus 16 percent of the excess over $10,100,000 |
(e) For estates of decedents dying in 2018:
|
Amount of Minnesota Taxable Estate |
Rate of Tax |
|
Not over $5,000,000 |
None |
|
Over $5,000,000 |
16 percent of the excess over $5,000,000 |
(f) For estates of decedents dying in 2019 and thereafter, 16 percent of the amount
of the Minnesota taxable estate.
EFFECTIVE DATE.
This section is effective retroactively for estates of decedents
dying after December 31, 2014.