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Minnesota Legislature

Office of the Revisor of Statutes

SF 198

as introduced - 89th Legislature (2015 - 2016) Posted on 01/21/2015 09:16am

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

Current Version - as introduced

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A bill for an act
relating to taxation; estate tax; conforming to the federal exclusion amount;
amending Minnesota Statutes 2014, sections 289A.10, subdivision 1; 291.016,
subdivision 3; 291.03, subdivision 1; repealing Minnesota Statutes 2014, sections
289A.10, subdivision 1a; 289A.12, subdivision 18; 289A.18, subdivision 3a;
289A.20, subdivision 3a; 291.03, subdivisions 8, 9, 10, 11.

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

Section 1.

Minnesota Statutes 2014, 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, ifdeleted text begin:
deleted text end

deleted text begin (1)deleted text end a federal estate tax return is required to be fileddeleted text begin; ordeleted text endnew text begin.
new text end

deleted text begin (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 $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;
$1,800,000 for estates of decedents dying in 2017; and $2,000,000 for estates of decedents
dying in 2018 and thereafter.
deleted 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 for estates of decedents dying after
December 31, 2014.
new text end

Sec. 2.

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


Subd. 3.

Subtraction.

The deleted text beginvalue 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), whichever is less,
deleted text endnew text begin decedent's applicable federal exclusion amount under
section 2010(c)(2) of the Internal Revenue Code
new text end may be subtracted in computing the
Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than zerodeleted text begin:
deleted text end

deleted text begin (1) $1,200,000 for estates of decedents dying in 2014;
deleted text end

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

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

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

deleted text begin (5) $2,000,000 for estates of decedents dying in 2018 and thereafterdeleted text end.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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):

deleted text begin (a) For estates of decedents dying in 2014:
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 $1,200,000
deleted text end
deleted text begin None
deleted text end
deleted text begin Over $1,200,000 but not over $1,400,000
deleted text end
deleted text begin nine percent of the excess over $1,200,000
deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000
deleted text end
deleted text begin $18,000 plus ten percent of the excess over
$1,400,000
deleted text end
deleted text begin Over $3,600,000 but not over $4,100,000
deleted text end
deleted text begin $238,000 plus 10.4 percent of the excess
over $3,600,000
deleted text end
deleted text begin Over $4,100,000 but not over $5,100,000
deleted text end
deleted text begin $290,000 plus 11.2 percent of the excess
over $4,100,000
deleted text end
deleted text begin Over $5,100,000 but not over $6,100,000
deleted text end
deleted text begin $402,000 plus 12 percent of the excess over
$5,100,000
deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000
deleted text end
deleted text begin $522,000 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 $650,000 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 $786,000 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 $930,000 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 $1,082,000 plus 16 percent of the excess
over $10,100,000
deleted text end

deleted text begin (b)deleted text end For estates of decedents dying in 2015new text begin and thereafternew 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) For estates of decedents dying in 2018 and thereafter:
deleted text end

Amount of Minnesota Taxable Estate
Rate of Tax
Not over deleted text begin$2,000,000deleted text endnew text begin$7,100,000
new text end
deleted text begin None deleted text end new text begin 13 percent
new text end
deleted text begin Over $2,000,000 but not over $2,600,000
deleted text end
deleted text begin ten percent of the excess over $2,000,000
deleted text end
deleted text begin Over $2,600,000 but not over $7,100,000
deleted text end
deleted text begin $60,000 plus 13 percent of the excess over
$2,600,000
deleted text end
Over $7,100,000 but not over $8,100,000
deleted text begin $645,000deleted text endnew text begin$923,000new text end plus 13.6 percent of the
excess over $7,100,000
Over $8,100,000 but not over $9,100,000
deleted text begin $781,000deleted text endnew text begin$1,059,000new text end plus 14.4 percent of
the excess over $8,100,000
Over $9,100,000 but not over $10,100,000
deleted text begin $925,000deleted text endnew text begin$1,203,000new text end plus 15.2 percent of
the excess over $9,100,000
Over $10,100,000
deleted text begin $1,077,000deleted text endnew text begin$1,355,000new text end 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 for estates of decedents dying after
December 31, 2014.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 289A.10, subdivision 1a; 289A.12, subdivision
18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9,
10, and 11,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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