SF 3021

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; allowing Minnesota 
  1.3             qualified terminable interest property elections; 
  1.4             modifying the definition of the taxable estate; 
  1.5             amending Minnesota Statutes 2003 Supplement, section 
  1.6             291.03, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.9   291.03, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [TAX AMOUNT.] (a) The tax imposed shall be 
  1.11  an amount equal to the proportion of the maximum credit computed 
  1.12  under section 2011 of the Internal Revenue Code, as amended 
  1.13  through December 31, 2000, for state death taxes as the 
  1.14  Minnesota gross estate bears to the value of the federal gross 
  1.15  estate.  The tax determined under this paragraph shall not be 
  1.16  greater than the federal estate tax computed under section 2001 
  1.17  of the Internal Revenue Code after the allowance of the federal 
  1.18  credits allowed under section 2010 of the Internal Revenue Code 
  1.19  of 1986, as amended through December 31, 2000.  
  1.20     (b) For the purposes of this section, the following are not 
  1.21  allowed in computing the tax under this chapter: 
  1.22     (1) expenses which are deducted for federal income tax 
  1.23  purposes under section 642(g) of the Internal Revenue Code as 
  1.24  amended through December 31, 2002, are not allowable in 
  1.25  computing the tax under this chapter. 2003; and 
  1.26     (2) state death taxes which are deducted under section 2058 
  2.1   of the Internal Revenue Code as amended through December 31, 
  2.2   2003; 
  2.3      (c) For qualified terminable interest property, as defined 
  2.4   in section 2056(b)(7) of the Internal Revenue Code, the executor 
  2.5   may make an election for purposes of the tax under this chapter 
  2.6   that is different than the amount elected for federal estate tax 
  2.7   purposes.  The election must be made on the return for tax under 
  2.8   this chapter and is irrevocable.  All tax under this chapter 
  2.9   must be determined using the qualified terminable interest 
  2.10  property election made on the Minnesota return. 
  2.11     [EFFECTIVE DATE.] This section is effective for decedents 
  2.12  dying after June 30, 2004.