Bill Text: IN SB0293 | 2012 | Regular Session | Enrolled
Bill Title: Inheritance tax.
Spectrum: Strong Partisan Bill (Republican 14-1)
Status: (Enrolled - Dead) 2012-03-20 - Signed by the Governor [SB0293 Detail]
Download: Indiana-2012-SB0293-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 2. IC 6-4.1-1-3, AS AMENDED BY P.L.220-2011, SECTION 149, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 3. (a) "Class A transferee" means a transferee who is any of the following:
(1) A lineal ancestor of the transferor.
(2) A lineal descendant of the transferor.
(3) A stepchild of the transferor, whether or not the stepchild is adopted by the transferor. This subdivision applies to the estate of an individual who dies after June 30, 2004.
(4) A lineal descendant of a stepchild of the transferor, whether or not the stepchild is adopted by the transferor.
(5) A spouse, widow, or widower of a child of the transferor. This subdivision applies to the estate of an individual who dies after December 31, 2011.
(6) A spouse, widow, or widower of a stepchild of the transferor, whether or not the stepchild is adopted by the
transferor. This subdivision applies to the estate of an
individual who dies after December 31, 2011.
(b) "Class B transferee" means a transferee who is a:
(1) brother or sister of the transferor;
(2) descendant of a brother or sister of the transferor; or
(3) spouse, widow, or widower of a child of the transferor. This
subdivision applies to the estate of an individual who dies
before January 1, 2012.
(c) "Class C transferee" means a transferee, except a surviving
spouse, who is neither a Class A nor a Class B transferee.
(d) For purposes of this section, a legally adopted child is to be
treated as if the child were the natural child of the child's adopting
parent if the adoption occurred before the individual was totally
emancipated. However, an individual adopted after being totally
emancipated shall be treated as the natural child of the adopting parent
if the adoption was finalized before July 1, 2004.
(e) For purposes of this section, if a relationship of loco parentis has
existed for at least ten (10) years and if the relationship began before
the child's fifteenth birthday, the child is to be considered the natural
child of the loco parentis parent.
(f) As used in this section, "stepchild" means a child of the
transferor's surviving, deceased, or former spouse who is not a child of
the transferor.
SECTION 3. IC 6-4.1-2-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 0.5. This chapter does not apply to a property interest
transferred by a decedent whose death occurs after December 31,
2021.
SECTION 4. IC 6-4.1-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) An inheritance
tax is imposed at the time of a decedent's death on certain property
interest transfers made by him. the decedent. The transfer of a property
interest is subject to the tax if:
(1) the property transferred is described in:
(i) (A) section 2 of this chapter, if the property is transferred
by a resident decedent; or
(ii) (B) section 3 of this chapter, if the property is transferred
by a nonresident decedent;
(2) the transfer is described in section 4 of this chapter; and
(3) neither the transfer nor the property is exempt from the
inheritance tax under IC 6-4.1-3.
(b) For purposes of this article, a transfer described in section 4 of
this chapter is considered a transfer made by the deceased transferor
regardless of when the transferee acquires the property interest.
SECTION 5. IC 6-4.1-3-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 0.5. This chapter does not apply to a property interest
transferred by a decedent whose death occurs after December 31,
2021.
SECTION 6. IC 6-4.1-3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]:
Sec. 10. (a) With respect to a taxable transfer or transfers resulting
from the death of a decedent who dies before January 1, 2012, the
first one hundred thousand dollars ($100,000) of property interests
transferred to a Class A transferee under a the taxable transfer or
transfers is exempt from the inheritance tax.
(b) With respect to a taxable transfer or transfers resulting
from the death of a decedent who dies after December 31, 2011, the
first two hundred fifty thousand dollars ($250,000) of property
interests transferred to a Class A transferee under the taxable
transfer or transfers is exempt from the inheritance tax.
SECTION 7. IC 6-4.1-4-0.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 0.2. This chapter does not apply to a property interest
transferred by a decedent whose death occurs after December 31,
2021.
SECTION 8. IC 6-4.1-5-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 0.5. This chapter does not apply to a property interest
transferred by a decedent whose death occurs after December 31,
2021.
SECTION 9. IC 6-4.1-5-1.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2012]: Sec. 1.1. (a) This section applies to a property interest
transferred by a decedent whose death occurs after December 31,
2012.
(b) For purposes of determining the amount of inheritance tax
imposed under this article, a credit is allowed against the tax
imposed under section 1 of this chapter on a decedent's transfer of
property interests. The amount of the credit equals the inheritance
tax imposed under section 1 of this chapter multiplied by the
percentage prescribed in the following table:
YEAR OF
PERCENTAGE
INDIVIDUAL'S DEATH
OF CREDIT
2013 10%
2014 20%
2015 30%
2016 40%
2017 50%
2018 60%
2019 70%
2020 80%
2021 90%
(c) A person who is liable for inheritance tax imposed under this
article may claim the credit allowed under this section at the time
the person pays the tax. When the payment is made, the person
collecting the tax shall reduce the inheritance tax due by the
amount of the credit specified in subsection (b).
SECTION 10. IC 6-4.1-6-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 0.5. This chapter does not apply
to a property interest transferred by a decedent whose death
occurs after December 31, 2021.
SECTION 11. IC 6-4.1-7-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 0.5. This chapter does not apply
to a property interest transferred by a decedent whose death
occurs after December 31, 2021.
SECTION 12. IC 6-4.1-8-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 0.5. This chapter does not apply
to a property interest transferred by a decedent whose death
occurs after December 31, 2021.
SECTION 13. IC 6-4.1-9-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 0.5. This chapter does not apply
to a property interest transferred by a decedent whose death
occurs after December 31, 2021.
SECTION 14. IC 6-4.1-11-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. (a) The department
of state revenue shall collect the Indiana estate tax and the interest
charges imposed under this chapter. The department shall remit the
money which it collects under this chapter to the state treasurer, and the
state treasurer shall deposit the money in the state general fund.
(b) Before August 15 of each year Except as provided in
subsection (e), the treasurer of state shall annually distribute to each
county the amount determined under subsection (c) or (d) for the
county. The distribution for a particular state fiscal year must be
made before August 15 of the following state fiscal year. There is
appropriated from the state general fund the amount necessary to make
the distributions under this section. subsection.
(c) For a state fiscal year ending before July 1, 2012, the
department of state revenue shall determine the inheritance tax
replacement amount for each county using the following formula:
STEP ONE: Determine the amount of inheritance tax revenue
retained by each county in each state fiscal year beginning with
the state fiscal year that began July 1, 1990, and ending with the
state fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance
tax revenue retained by each county using five (5) of the seven (7)
state fiscal years described in STEP ONE after excluding the two
(2) years in which each county retained its highest and lowest
totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO
amount minus the amount of inheritance taxes retained by the
county during the immediately preceding state fiscal year.
(d) For a state fiscal year beginning after June 30, 2012, and
ending before July 1, 2022, the department of state revenue shall
determine the inheritance tax replacement amount for each county
using the following formula:
STEP ONE: Determine the inheritance tax replacement
amount distributed to the county for the state fiscal year that
began on July 1, 2011.
STEP TWO: Multiply the amount determined under STEP
ONE by the appropriate percentage as follows:
(A) Ninety-one percent (91%) for the state fiscal year
beginning July 1, 2012.
(B) Eighty-two percent (82%) for the state fiscal year
beginning July 1, 2013.
(C) Seventy-three percent (73%) for the state fiscal year
beginning July 1, 2014.
(D) Sixty-four percent (64%) for the state fiscal year
beginning July 1, 2015.
(E) Fifty-five percent (55%) for the state fiscal year
beginning July 1, 2016.
(F) Forty-five percent (45%) for the state fiscal year
beginning July 1, 2017.
(G) Thirty-six percent (36%) for the state fiscal year
beginning July 1, 2018.
(H) Twenty-seven percent (27%) for the state fiscal year
beginning July 1, 2019.
(I) Eighteen percent (18%) for the state fiscal year
beginning July 1, 2020.
(J) Nine percent (9%) for the state fiscal year beginning
July 1, 2021.
(e) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2022.
SECTION 15. IC 6-4.1-12-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 0.5. (a) For an individual who
dies after December 31, 2021, there is no inheritance tax imposed
on the decedent's transfer of property interests.
(b) Sections 1 through 12 of this chapter do not apply to a
property interest transferred by a decedent whose death occurs
after December 31, 2021.
SECTION 16. An emergency is declared for this act.
SEA 293
Graphic file number 1 named seal1001.pcx with height 58 p and width 72 p Left aligned
