SF 554

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to estate taxation; conforming to the federal exemption amount;
amending Minnesota Statutes 2006, section 291.03, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 291.03, subdivision 1, is amended to read:

Subdivision 1.

Tax amount.

The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011 of
the Internal Revenue Code, deleted text begin as amended through December 31, 2000, deleted text end but new text begin without regard
to the reduction in or repeal of the credit and new text end using Minnesota adjusted taxable estate
instead of federal adjusted taxable estate, as the Minnesota gross estate bears to the value
of the federal gross estate. The tax determined under this paragraph shall not be greater
than the amount computed by applying the rates and brackets under section 2001(c) of
the Internal Revenue Code to the Minnesota adjusted gross estate and subtracting the
federal credit allowed under section 2010 of the Internal Revenue Code of 1986, as
amended through December 31, 2000. For the purposes of this section, expenses which
are deducted for federal income tax purposes under section 642(g) of the Internal Revenue
Code as amended through December 31, 2002, are not allowable in computing the tax
under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2006.
new text end