Minnesota Legislature
HF 3507
as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 02:18pm
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21
1.22
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12
2.13 2.14
2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24
2.25 2.26
2.27 2.28 2.29 2.30 2.31 2.32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27
3.28 3.29
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31
4.32
A bill for an act
relating to taxation; modifying the estate tax; providing for spousal portability of
a deceased spouse's unused exclusion amount; making conforming and technical
changes; amending Minnesota Statutes 2020, sections 289A.10, subdivision 1, by
adding a subdivision; 289A.12, by adding a subdivision; 291.016, subdivision 3;
291.03, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 289A.10, subdivision 1, is amended to read:
Subdivision 1.
Return required.
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
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 .
The return must contain a computation of the Minnesota estate tax due. The return must
be signed by the personal representative.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2020, section 289A.10, is amended by adding a subdivision to
read:
new text begin Subd. 1b. 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 subdivision 1, to allow a decedent's surviving spouse
to take into account the decedent's deceased spousal unused exclusion amount and the
decedent's deceased spousal unused qualified property exclusion amount, as provided in
section 291.016, subdivision 3, paragraph (b).
new text end
new text begin
(b) The election under paragraph (a) is irrevocable. By filing a return under subdivision
1, the personal representative is deemed to have elected portability unless the personal
representative states affirmatively on the return that the decedent's estate is not 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
1, 2022.
new text end
Sec. 3.
Minnesota Statutes 2020, section 289A.12, is amended by adding a subdivision to
read:
new text begin Subd. 19. new text end
new text begin
Election of portability of deceased spousal unused exclusion amounts
when estate tax return not required.
new text end
new text begin
A personal representative of a decedent's estate that
is not required to file a return under section 289A.10, subdivision 1, may file a return to
allow a decedent's surviving spouse to take into account the decedent's deceased spousal
unused exclusion amount and the decedent's deceased spousal unused qualified property
exclusion amount, as provided in section 291.016, subdivision 3, paragraph (b). The return
is subject to the same provisions as a return required under section 289A.10, subdivision
1.
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
1, 2022.
new text end
Sec. 4.
Minnesota Statutes 2020, 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, equal to the sum of:
new text end
new text begin
(1) a deceased spousal unused exclusion amount equal to the lesser of:
new text end
new text begin
(i) $3,000,000; or
new text end
new text begin
(ii) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last
deceased spouse of the decedent, but not including in the taxable estate property described
in section 291.03, subdivisions 9 and 10, and computed without regard to the subtractions
in this subdivision, but in no case less than zero; and
new text end
new text begin
(2) a deceased spousal unused qualified property exclusion amount equal to the lesser
of:
new text end
new text begin
(i) $2,000,000; or
new text end
new text begin
(ii) the excess of $2,000,000 over 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, that were included in the Minnesota taxable estate of the last deceased
spouse of the decedent, computed without regard to the subtractions in this subdivision, 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. 5.
Minnesota Statutes 2020, 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 thennew text begin multiplyingnew 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 |
|
deleted text begin
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 |
|
deleted text begin
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