Bill Text: MN SF40 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Estate taxation federal exemption amount conformance
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2013-01-28 - Author added Nelson [SF40 Detail]
Download: Minnesota-2013-SF40-Introduced.html
1.2relating to taxation; estate; conforming to federal exemption amount; amending
1.3Minnesota Statutes 2012, sections 291.005, subdivision 1; 291.03, subdivision 1;
1.4repealing Minnesota Statutes 2012, section 291.03, subdivisions 8, 9, 10, 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
1.7 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
1.8terms used in this chapter shall have the following meanings:
1.9 (1) "Commissioner" means the commissioner of revenue or any person to whom the
1.10commissioner has delegated functions under this chapter.
1.11 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
1.12and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
1.13 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
1.141986, as amended throughApril 14, 2011, but without regard to the provisions of sections
1.15501 and 901 of Public Law 107-16, as amended by Public Law 111-312, and section
1.16301(c) of Public Law 111-312 December 31, 2011.
1.17 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
1.18defined by section 2011(b)(3) of the Internal Revenue Code, plus
1.19(i) the amount of deduction for state death taxes allowed under section 2058 of
1.20the Internal Revenue Code; less
1.21(ii)(A) the value of qualified small business property under section
291.03,
1.22subdivision 9, and the value of qualified farm property under section
291.03, subdivision
1.2310, or (B) $4,000,000, whichever is less.
2.1 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
2.2excluding therefrom any property included therein which has its situs outside Minnesota,
2.3and (b) including therein any property omitted from the federal gross estate which is
2.4includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
2.5authorities.
2.6 (6) "Nonresident decedent" means an individual whose domicile at the time of
2.7death was not in Minnesota.
2.8 (7) "Personal representative" means the executor, administrator or other person
2.9appointed by the court to administer and dispose of the property of the decedent. If there
2.10is no executor, administrator or other person appointed, qualified, and acting within this
2.11state, then any person in actual or constructive possession of any property having a situs in
2.12this state which is included in the federal gross estate of the decedent shall be deemed
2.13to be a personal representative to the extent of the property and the Minnesota estate tax
2.14due with respect to the property.
2.15 (8) "Resident decedent" means an individual whose domicile at the time of death
2.16was in Minnesota.
2.17 (9) "Situs of property" means, with respect to real property, the state or country in
2.18which it is located; with respect to tangible personal property, the state or country in which
2.19it was normally kept or located at the time of the decedent's death; and with respect to
2.20intangible personal property, the state or country in which the decedent was domiciled
2.21at death.
2.22EFFECTIVE DATE.This section is effective for estates of decedents dying after
2.23December 31, 2012.
2.24 Sec. 2. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
2.25 Subdivision 1. Tax amount.(a) The tax imposed shall be an amount equal to the
2.26proportion of the maximum credit for state death taxes computed under section 2011 of the
2.27Internal Revenue Code for decedents dying in calendar year 2012, but without regard to
2.28repeal of the credit and using Minnesota adjusted taxable estate instead of federal adjusted
2.29taxable estate, as the Minnesota gross estate bears to the value of the federal gross estate.
2.30 For purposes of this section, expenses which are deducted for federal income tax purposes
2.31under section 642(g) of the Internal Revenue Code as amended through December 31,
2.322002, are not allowed in computing the tax under this chapter.
2.33(b) The tax determined under this subdivision must not be greater than the sum of
2.34the following amounts multiplied by a fraction, the numerator of which is the Minnesota
2.35gross estate and the denominator of which is the federal gross estate:
3.1(1) the rates and brackets under section 2001(c) of the Internal Revenue Code
3.2multiplied by the sum of:
3.3(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
3.4(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
3.5Code; less
3.6(iii) the lesser of (A) the sum of the value of qualified small business property
3.7under subdivision 9, and the value of qualified farm property under subdivision 10, or
3.8(B) $4,000,000; less
3.9(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
3.10Code; and less
3.11(3) the federal credit allowed under section 2010 of the Internal Revenue Code.
3.12(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
3.13Revenue Code of 1986, as amended through December 31, 2000.
3.14EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.15December 31, 2012.
3.16 Sec. 3. REPEALER.
3.17Minnesota Statutes 2012, section 291.03, subdivisions 8, 9, 10, and 11, are repealed.
3.18EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.19December 31, 2012.
1.3Minnesota Statutes 2012, sections 291.005, subdivision 1; 291.03, subdivision 1;
1.4repealing Minnesota Statutes 2012, section 291.03, subdivisions 8, 9, 10, 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
1.7 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
1.8terms used in this chapter shall have the following meanings:
1.9 (1) "Commissioner" means the commissioner of revenue or any person to whom the
1.10commissioner has delegated functions under this chapter.
1.11 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
1.12and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
1.13 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
1.141986, as amended through
1.15
1.16
1.17 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
1.18defined by section 2011(b)(3) of the Internal Revenue Code, plus
1.19
1.20the Internal Revenue Code
1.21
1.22
1.23
2.1 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
2.2excluding therefrom any property included therein which has its situs outside Minnesota,
2.3and (b) including therein any property omitted from the federal gross estate which is
2.4includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
2.5authorities.
2.6 (6) "Nonresident decedent" means an individual whose domicile at the time of
2.7death was not in Minnesota.
2.8 (7) "Personal representative" means the executor, administrator or other person
2.9appointed by the court to administer and dispose of the property of the decedent. If there
2.10is no executor, administrator or other person appointed, qualified, and acting within this
2.11state, then any person in actual or constructive possession of any property having a situs in
2.12this state which is included in the federal gross estate of the decedent shall be deemed
2.13to be a personal representative to the extent of the property and the Minnesota estate tax
2.14due with respect to the property.
2.15 (8) "Resident decedent" means an individual whose domicile at the time of death
2.16was in Minnesota.
2.17 (9) "Situs of property" means, with respect to real property, the state or country in
2.18which it is located; with respect to tangible personal property, the state or country in which
2.19it was normally kept or located at the time of the decedent's death; and with respect to
2.20intangible personal property, the state or country in which the decedent was domiciled
2.21at death.
2.22EFFECTIVE DATE.This section is effective for estates of decedents dying after
2.23December 31, 2012.
2.24 Sec. 2. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
2.25 Subdivision 1. Tax amount.
2.26proportion of the maximum credit for state death taxes computed under section 2011 of the
2.27Internal Revenue Code for decedents dying in calendar year 2012, but without regard to
2.28repeal of the credit and using Minnesota adjusted taxable estate instead of federal adjusted
2.29taxable estate, as the Minnesota gross estate bears to the value of the federal gross estate.
2.30 For purposes of this section, expenses which are deducted for federal income tax purposes
2.31under section 642(g) of the Internal Revenue Code as amended through December 31,
2.322002, are not allowed in computing the tax under this chapter.
2.33
2.34
2.35
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3.14EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.15December 31, 2012.
3.16 Sec. 3. REPEALER.
3.17Minnesota Statutes 2012, section 291.03, subdivisions 8, 9, 10, and 11, are repealed.
3.18EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.19December 31, 2012.
