HF 461

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to estate taxation; conforming to the 
  1.3             exemption amounts under the federal estate tax; 
  1.4             amending Minnesota Statutes 2002, sections 289A.10, 
  1.5             subdivision 1; 291.005, subdivision 1; 291.03, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 289A.10, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [RETURN REQUIRED.] (a) In the case of a 
  1.11  decedent who has an interest in property with a situs in 
  1.12  Minnesota, the personal representative must submit a Minnesota 
  1.13  estate tax return to the commissioner, on a form prescribed by 
  1.14  the commissioner, if the federal gross estate exceeds $700,000 
  1.15  for estates of decedents dying after December 31, 2001, and 
  1.16  before January 1, 2004; $850,000 for estates of decedents dying 
  1.17  after December 31, 2003, and before January 1, 2005; $950,000 
  1.18  for estates of decedents dying after December 31, 2004, and 
  1.19  before January 1, 2006; and $1,000,000 for estates of decedents 
  1.20  dying after December 31, 2005: 
  1.21     (1) a federal estate tax return is required to be filed; or 
  1.22     (2) the federal estate tax is repealed and a federal estate 
  1.23  tax return would have been required to be filed if the decedent 
  1.24  had died on the day before its repeal became effective. 
  1.25     (b) The return must contain a computation of the Minnesota 
  1.26  estate tax due.  The return must be signed by the personal 
  2.1   representative. 
  2.2      [EFFECTIVE DATE.] This section is effective for estates of 
  2.3   decedents dying after June 30, 2003. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 291.005, 
  2.5   subdivision 1, is amended to read: 
  2.6      Subdivision 1.  Unless the context otherwise clearly 
  2.7   requires, the following terms used in this chapter shall have 
  2.8   the following meanings: 
  2.9      (1) "Federal gross estate" means the gross estate of a 
  2.10  decedent as valued and otherwise determined for federal estate 
  2.11  tax purposes by federal taxing authorities pursuant to the 
  2.12  provisions of the Internal Revenue Code. 
  2.13     (2) "Minnesota gross estate" means the federal gross estate 
  2.14  of a decedent after (a) excluding therefrom any property 
  2.15  included therein which has its situs outside Minnesota and 
  2.16  pensions exempt from tax under this chapter pursuant to section 
  2.17  352.15, subdivision 1; 353.15, subdivision 1; 354.10, 
  2.18  subdivision 1; 354B.30; or 354C.165, and (b) including therein 
  2.19  any property omitted from the federal gross estate which is 
  2.20  includable therein, has its situs in Minnesota, and was not 
  2.21  disclosed to federal taxing authorities.  
  2.22     (3) "Personal representative" means the executor, 
  2.23  administrator or other person appointed by the court to 
  2.24  administer and dispose of the property of the decedent.  If 
  2.25  there is no executor, administrator or other person appointed, 
  2.26  qualified, and acting within this state, then any person in 
  2.27  actual or constructive possession of any property having a situs 
  2.28  in this state which is included in the federal gross estate of 
  2.29  the decedent shall be deemed to be a personal representative to 
  2.30  the extent of the property and the Minnesota estate tax due with 
  2.31  respect to the property. 
  2.32     (4) "Resident decedent" means an individual whose domicile 
  2.33  at the time of death was in Minnesota. 
  2.34     (5) "Nonresident decedent" means an individual whose 
  2.35  domicile at the time of death was not in Minnesota. 
  2.36     (6) "Situs of property" means, with respect to real 
  3.1   property, the state or country in which it is located; with 
  3.2   respect to tangible personal property, the state or country in 
  3.3   which it was normally kept or located at the time of the 
  3.4   decedent's death; and with respect to intangible personal 
  3.5   property, the state or country in which the decedent was 
  3.6   domiciled at death. 
  3.7      (7) "Commissioner" means the commissioner of revenue or any 
  3.8   person to whom the commissioner has delegated functions under 
  3.9   this chapter. 
  3.10     (8) "Internal Revenue Code" means the United States 
  3.11  Internal Revenue Code of 1986, as amended through December 31, 
  3.12  2000 2002, except the following provisions do not apply: 
  3.13     (i) the reduction in the credit for state death taxes under 
  3.14  section 2011(b)(2); 
  3.15     (ii) the termination of the credit for state death taxes 
  3.16  under section 2011(f); and 
  3.17     (iii) the repeal of the estate tax under section 501 of the 
  3.18  Economic Growth and Tax Relief and Reconciliation Act of 2001, 
  3.19  Public Law 107-16. 
  3.20     [EFFECTIVE DATE.] This section is effective for estates of 
  3.21  decedents dying after June 30, 2003. 
  3.22     Sec. 3.  Minnesota Statutes 2002, section 291.03, 
  3.23  subdivision 1, is amended to read: 
  3.24     Subdivision 1.  [TAX AMOUNT.] The tax imposed shall be an 
  3.25  amount equal to the proportion of the maximum credit computed 
  3.26  under section 2011 of the Internal Revenue Code for state death 
  3.27  taxes as the Minnesota gross estate bears to the value of the 
  3.28  federal gross estate.  For a resident decedent, the tax shall be 
  3.29  the maximum credit computed under section 2011 of the Internal 
  3.30  Revenue Code, determined without regard to the provisions of 
  3.31  section 2011(b)(2) and 2011(f), reduced by the amount of the 
  3.32  death tax paid the other state and credited against the federal 
  3.33  estate tax if this results in a larger amount of tax than the 
  3.34  proportionate amount of the credit.  The tax determined under 
  3.35  this paragraph shall not be greater than the federal estate tax 
  3.36  computed under section 2001 of the Internal Revenue Code after 
  4.1   the allowance of the federal credits allowed under section 2010 
  4.2   of the Internal Revenue Code of 1986, as amended through 
  4.3   December 31, 2000. 
  4.4      [EFFECTIVE DATE.] This section is effective for estates of 
  4.5   decedents dying after June 30, 2003.