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SPONSOR: |
Sen. Simpson & Rep. Hudson & Rep. Ramone
& Rep. Wilson |
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Sens.
Bonini, Hocker, Lavelle; Reps. Briggs King, Collins, Dukes, Gray, Kenton,
Miro, Spiegelman, Yearick |
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DELAWARE STATE SENATE 148th GENERAL ASSEMBLY |
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SENATE BILL NO. 17 |
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AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE ESTATE TAX. |
Section 1. Amend Chapter 15, Title 30, Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1501 Definitions relating to this
chapter.
As used in this chapter,
(1) "Delaware taxable estate"
shall mean the modified federal taxable estate of the decedent, reduced, but
not below zero, by the exemption amount.
(2) "Estate tax" shall mean the
tax imposed under this chapter.
(3) "Exemption amount" shall
mean:
a. If the date of the decedent's death is after
June 30, 2009, and before January 1, 2010, $3,500,000;
b. If the date of the decedent's death is after
December 31, 2009, and before January 1, 2011:
1 If the decedent's personal representative has
made an election in accordance with federal law to apply the Internal Revenue
Code as though the amendments made by § 301(a) of The Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111-312,
124 Stat. 3296, do not apply with respect to Chapter 11 of the Internal Revenue
Code [26 U.S.C. Chapter 11] and with respect to property acquired or passing
from such decedent (within the meaning of § 1014(b) of the Internal Revenue
Code) [26 U.S.C. § 1014(b)], $3,500,000; or
2. In all other cases, $5,000,000.
c. If the date of the decedent's death is after
December 31, 2010, the applicable exclusion amount set forth in § 2010(c) of
the Internal Revenue Code (26 U.S.C. § 2010(c)) as in effect on the date of the
decedent's death.
(4) "Modified federal taxable estate
of the decedent" shall mean the federal taxable estate of the decedent
calculated under the provisions of the federal estate tax laws as in effect on
the date of the decedent's death,
a. Increased by the amount of any deduction for
state death taxes included in calculating the federal taxable estate under §
2058 of the Internal Revenue Code (26 U.S.C. § 2058), or any successor
provision thereto;
b. Increased by the value of property, if any
remains as of the decedent's date of death, for which a marital deduction
qualified terminable interest property election was made for the decedent's
predeceased spouse on a timely-filed Delaware estate tax return, to the extent
such property was not included in the federal taxable estate;
c. Decreased by the value of agricultural land,
and agricultural buildings on such land, enrolled in farmland assessment or
farmland preservation programs, to the extent such property was included in the
federal taxable estate; and
d. Decreased by the value of any interest in
property which passes or has passed from the decedent to the decedent's
surviving spouse pursuant to a written irrevocable election to treat property
as marital deduction qualified terminable interest property made by the
decedent's personal representative and submitted with or on a timely-filed
Delaware estate tax return, regardless of whether such an election was made for
such decedent for federal estate tax purposes, which shall be deemed to be an
election as required by § 2056(b)(7)(B)(i), (iii), and (v) of the Internal
Revenue Code (26 U.S.C. § 2056(7)(B)(i), (iii) and (v)), to the extent such
interest was included in the federal taxable estate.
(5) "Personal representative"
shall mean any executor or administrator of the decedent and, with respect to
property which is included in the gross estate for federal estate tax purposes
and which is not in the possession or control of the personal representative,
any person in possession of such property.
(6) "State," except where the
context otherwise indicates, shall mean this State or any other state of the
United States or the District of Columbia.
§ 1502 Tax on transfers of resident
estates.
(a) Imposition of tax. — A tax is
imposed upon the transfer of the property of every decedent who was a resident
of this State at the time of death.
(b) Amount of tax; decedents dying
before July 1, 2009. — Except as provided in § 1503 of this title, the
amount of the tax shall be the amount of credit allowable under the provisions
of the federal estate tax laws for estate, inheritance, legacy and succession
taxes paid to any state.
(c) Amount of tax; decedents dying
after June 30, 2009. — Except as provided in § 1503 of this title, the
amount of the tax shall be determined pursuant to the table set forth below:
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§ 1503 Credit for taxes paid to another
state; limitation.
(a) Subject to subsection (b) of this
section, the Delaware taxable estate of every decedent who was a resident of
this State at the time of death shall be allowed a credit against the estate
tax otherwise due under this chapter for the aggregate amount of all estate, inheritance,
legacy and succession taxes actually paid to any other state with respect to
any property owned by such decedent or subject to such taxes as part of or in
connection with the estate and for which a credit or deduction for such taxes
paid to any other state was allowable under the federal estate tax laws in
effect as of the decedent's date of death.
(b) The credit allowed under subsection
(a) of this section above for taxes paid to any other state shall be limited to
that amount which does not reduce the estate tax due under this chapter to an
amount less than the estate tax otherwise due under this chapter
notwithstanding this section, multiplied by a fraction:
(1) The numerator of which is the value of
that part of the decedent's federal taxable estate consisting of real and
tangible personal property located in this State plus all intangible personal
property; and
(2) The denominator of which is the value
of the decedent's federal taxable estate, excluding real and tangible personal
property not located in any state.
§ 1504 Tax on transfers of nonresident
estates.
(a) Imposition of tax. — Subject to
subsections (b) and (c) of this section, a tax is imposed upon the transfer of
the estate of every decedent who, at the time of death, was a nonresident of
this State and owned real or tangible personal property situated in this State
which was taxable under the provisions of Chapter 11 of the Internal Revenue
Code (26 U.S.C. Chapter 11) as it was in effect on the decedent's date of
death.
(b) Amount of tax. — The amount of
the tax shall be computed in the same manner as provided in § 1502 of this
title, the result of which is then multiplied by a fraction:
(1) The numerator of which is the value of
that part of the decedent's federal taxable estate consisting of real and
tangible personal property located in this State, and
(2) The denominator of which is the value
of the decedent's federal taxable estate, excluding real and tangible personal
property not located in any state.
§ 1505 Returns; time to file return and
pay tax.
(a) Duty to file return. — The
personal representative shall have a duty to file an estate tax return with
this State in all cases when a representative for the estate of a resident
decedent, or a representative for the estate of a nonresident decedent having
real or tangible personal property located in this State which is included in
the value of the decedent's Delaware taxable estate, is required to file a
federal estate tax return under the provisions of the Internal Revenue Code in
effect as of the decedent's date of death.
(b) Time to file return. — The
estate tax returns required by this chapter shall be filed within 9 months
after the date of the decedent's death.
(c) Time and place for payment of tax. —
The personal representative shall, without assessment, notice or demand, pay
any tax due thereon to the Division of Revenue on or before the date fixed for
filing the return. The Director of Revenue shall prescribe the place for filing
any return, declaration, statement or other document required pursuant to this
chapter and for the payment of any tax.
§ 1506 Collection and payment of tax out
of estate; liability of the personal representative.
(a) The personal representative shall pay
to the Department of Finance the full amount of the Delaware estate tax when
the same is due, out of any moneys belonging to such estate in the personal
representative's hands.
(b) The personal representative shall have
the same powers and duties in respect to the raising of funds for the payment
of such tax as conferred upon an executor under §§ 2205, 2206, 2207A and 2207B
of the Internal Revenue Code [26 U.S.C. §§ 2205, 2206, 2207A and 2207B], and
pursuant to the laws of this State in the case of raising funds for the payment
of a decedent's debts generally. Any provision in a decedent's will (or
revocable trust) in which a decedent effectively waives a right of recovery
under a section of the Internal Revenue Code referred to in the preceding
sentence shall be deemed a waiver of the corresponding right of recovery under
this section, unless the will or revocable trust specifically states otherwise.
(c) Every personal representative of a
decedent's estate or any part thereof which is taxable under this chapter is
personally liable for the payment of the estate tax. In addition to personal
liability for payment of the estate tax, any personal representative failing to
perform the duties under this chapter shall forfeit any right to commissions
for settling the estate of the decedent.
§ 1507 Assessment of tax; special lien for
estate taxes.
(a) Assessment. — Notwithstanding
the provisions of § 530 of this title, the tax due pursuant to this chapter
shall be deemed assessed on the date of filing the Delaware estate tax return
or the due date of the federal estate tax return for the decedent, whichever is
earlier.
(b) Special lien for estate taxes. —
The tax imposed by this chapter shall be a special lien upon the gross estate
of a resident decedent and upon the real and tangible personal property of a
nonresident decedent situated in this State at the time of the decedent's death
for 10 years from the date of death. Any property for which a marital or
charitable deduction was allowed for federal estate tax purposes shall be
exempt from the lien provided by this subsection.
(c) Extinguishment of lien. —
Notwithstanding the foregoing, the special lien shall be extinguished:
(1) Pursuant to § 555 of this title as to
such part of the gross estate sold for the payment of charges against the
estate and expenses of its administration,
(2) Upon filing with the register of wills
of the county in which the decedent resided and in which the decedent owned
real property of 1 of the 2 following certificates:
a. Of the Director of Revenue that the estate
tax return has been filed and the correct tax has been paid, pursuant to §
2304(a) of Title 12, or
b. That no estate tax return or tax was due,
pursuant to § 2304(b) of Title 12.
Section 2. This Act shall be effective for the estates of decedents dying on or after July 1, 2015.
SYNOPSIS
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This Act repeals the Delaware Estate Tax as of July 1, 2015. |
AUTHOR: Sen. Simpson