Bill Text: IN SB0145 | 2012 | Regular Session | Introduced
Bill Title: Inheritance tax, estate tax, and GST tax.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - First reading: referred to Committee on Tax and Fiscal Policy [SB0145 Detail]
Download: Indiana-2012-SB0145-Introduced.html
Introduced Version
SENATE BILL No. 145
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-4.1.
Synopsis: Inheritance tax, estate tax, and GST tax. Phases out the
inheritance tax beginning July 1, 2012, by giving an increasing credit
against the inheritance tax due. Provides that the inheritance tax does
not apply to the transfer of property interests by a decedent whose
death occurs after June 30, 2017. Phases out payments of the
inheritance tax replacement amount to counties over a period between
2012 and 2017. Provides that the estate tax and generation skipping
transfer (GST) tax do not apply after June 30, 2017. Makes technical
corrections.
Effective: July 1, 2012.
Miller
January 4, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
Second Regular Session 117th General Assembly (2012)
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
SENATE BILL No. 145
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-4.1-1-0.5; (12)IN0145.1.1. -->
SECTION 1. IC 6-4.1-1-0.5 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 June 30, 2017.
SOURCE: IC 6-4.1-2-0.5; (12)IN0145.1.2. -->
SECTION 2. 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 June 30, 2017.
SOURCE: IC 6-4.1-2-1; (12)IN0145.1.3. -->
SECTION 3. IC 6-4.1-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) Except as
provided by section 0.5 of this chapter and IC 6-4.1-12-0.5(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.
(1) the property transferred is described in:
(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.
SOURCE: IC 6-4.1-3-0.5; (12)IN0145.1.4. -->
SECTION 4. 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 June 30, 2017.
SOURCE: IC 6-4.1-4-0.2; (12)IN0145.1.5. -->
SECTION 5. 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 June 30, 2017.
SOURCE: IC 6-4.1-5-0.5; (12)IN0145.1.6. -->
SECTION 6. 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 June 30, 2017.
SOURCE: IC 6-4.1-5-1.1; (12)IN0145.1.7. -->
SECTION 7. 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 June 30, 2012.
(b) A credit is allowed against the tax imposed under section 1 of this chapter on a decedent's transfer of property interests to a particular transferee. 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:
DATE OF PERCENTAGE
INDIVIDUAL'S DEATH OF CREDIT
After June 30, 2012, and
before July 1, 2013 20%
After June 30, 2013, and
before July 1, 2014 40%
After June 30, 2014, and
before July 1, 2015 50%
After June 30, 2015, and
before July 1, 2016 60%
After June 30, 2016, and
before July 1, 2017 80%
(c) A person who is liable for inheritance tax imposed under this
(b) A credit is allowed against the tax imposed under section 1 of this chapter on a decedent's transfer of property interests to a particular transferee. 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:
DATE OF PERCENTAGE
INDIVIDUAL'S DEATH OF CREDIT
After June 30, 2012, and
before July 1, 2013 20%
After June 30, 2013, and
before July 1, 2014 40%
After June 30, 2014, and
before July 1, 2015 50%
After June 30, 2015, and
before July 1, 2016 60%
After June 30, 2016, and
before July 1, 2017 80%
(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).
SOURCE: IC 6-4.1-6-0.5; (12)IN0145.1.8. -->
SECTION 8. 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 June 30, 2017.
SOURCE: IC 6-4.1-7-0.5; (12)IN0145.1.9. -->
SECTION 9. 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 June 30, 2017.
SOURCE: IC 6-4.1-8-0.5; (12)IN0145.1.10. -->
SECTION 10. 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 June 30, 2017.
SOURCE: IC 6-4.1-9-0.5; (12)IN0145.1.11. -->
SECTION 11. 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 June 30, 2017.
SOURCE: IC 6-4.1-11-0.5; (12)IN0145.1.12. -->
SECTION 12. IC 6-4.1-11-0.5 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 the estate of an individual who dies after June 30, 2017.
SOURCE: IC 6-4.1-11-6; (12)IN0145.1.13. -->
SECTION 13. 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, 2017, 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 beginning after June 30, 2011, and ending before July 1, 2012.
STEP TWO: Multiply the amount determined under STEP ONE by the appropriate percentage as follows:
(A) Eighty percent (80%) for a state fiscal year beginning after June 30, 2012, and ending before July 1, 2013.
(B) Sixty percent (60%) for a state fiscal year beginning after June 30, 2013, and ending before July 1, 2014.
(C) Fifty percent (50%) for a state fiscal year beginning after June 30, 2014, and ending before July 1, 2015.
(D) Forty percent (40%) for a state fiscal year beginning after June 30, 2015, and ending before July 1, 2016.
(E) Twenty percent (20%) for a state fiscal year beginning after June 30, 2016, and ending before July 1, 2017.
(e) A county is not entitled to a distribution under subsection (b) for a state fiscal year beginning after June 30, 2017.
(b)
(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, 2017, 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 beginning after June 30, 2011, and ending before July 1, 2012.
STEP TWO: Multiply the amount determined under STEP ONE by the appropriate percentage as follows:
(A) Eighty percent (80%) for a state fiscal year beginning after June 30, 2012, and ending before July 1, 2013.
(B) Sixty percent (60%) for a state fiscal year beginning after June 30, 2013, and ending before July 1, 2014.
(C) Fifty percent (50%) for a state fiscal year beginning after June 30, 2014, and ending before July 1, 2015.
(D) Forty percent (40%) for a state fiscal year beginning after June 30, 2015, and ending before July 1, 2016.
(E) Twenty percent (20%) for a state fiscal year beginning after June 30, 2016, and ending before July 1, 2017.
(e) A county is not entitled to a distribution under subsection (b) for a state fiscal year beginning after June 30, 2017.
SOURCE: IC 6-4.1-11.5-0.5; (12)IN0145.1.14. -->
SECTION 14. IC 6-4.1-11.5-0.5 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 June 30, 2017.
SOURCE: IC 6-4.1-12-0.5; (12)IN0145.1.15. -->
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 June 30, 2017, 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 June 30, 2017.
