Bill Text: CT SB00446 | 2016 | General Assembly | Introduced

Connecticut Senate Bill 446 (Prior Session Legislation)

Introduced

Bill Title: An Act Repealing The Estate And Gift Taxes.

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2016-03-14 - Public Hearing 03/18 [SB00446 Detail]

Download: Connecticut-2016-SB00446-Introduced.html


General Assembly		*Raised Bill No. 446*
*February Session, 2016*		LCO No. 2933
		02933_______FIN
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)

AN ACT REPEALING THE ESTATE AND GIFT TAXES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsections (c) to (g), inclusive, of section 12-391 of the 2016 supplement to the general statutes are repealed and the following is substituted in lieu thereof (Effective January 1, 2017, and applicable to estates of decedents dying on or after January 1, 2017):

(1) (A) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, but prior to January 1, 2010. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.

(B) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2015, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005. The deduction for state death taxes paid under Section 2058 of said code shall be disregarded.

(C) "Connecticut taxable estate" means, with respect to the estates of decedents dying on or after January 1, 2015, but prior to January 1, 2017, (i) the gross estate less allowable deductions, as determined under Chapter 11 of the Internal Revenue Code, plus (ii) the aggregate amount of all Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by the decedent for all calendar years beginning on or after January 1, 2005, other than Connecticut taxable gifts that are includable in the gross estate for federal estate tax purposes of the decedent, plus (iii) the amount of any tax paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate on any gift made by the decedent or the decedent's spouse during the three-year period preceding the date of the decedent's death. The deduction for state death taxes paid under Section 2058 of the Internal Revenue Code shall be disregarded.

(2) "Internal Revenue Code" means the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, except in the event of repeal of the federal estate tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.

(3) "Gross estate" means the gross estate, for federal estate tax purposes.

(d) (1) (A) With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.

(B) With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2015, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.

(C) With respect to the estates of decedents who die on or after January 1, 2015, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section.

(D) With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2017, a tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this state. The amount of the tax shall be determined using the schedule in subsection (g) of this section. A credit shall be allowed against such tax for (i) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2005, and (ii) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2005, that are includable in the gross estate of the decedent, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

(E) With respect to the estates of decedents who die on or after January 1, 2017, no tax shall be imposed under this chapter upon the transfer of the estate of a person who at the time of death was a resident of this state.

(2) If real or tangible personal property of such decedent is located outside of this state, the amount of tax due under this section shall be reduced by an amount computed by multiplying the tax otherwise due pursuant to subdivision (1) of this subsection, without regard to the credit allowed for any taxes paid to this state pursuant to section 12-642, as amended by this act, by a fraction, (A) the numerator of which is the value of that part of the decedent's gross estate attributable to real or tangible personal property located outside of the state, and (B) the denominator of which is the value of the decedent's gross estate.

(3) For a resident estate, the state shall have the power to levy the estate tax upon real property situated in this state, tangible personal property having an actual situs in this state and intangible personal property included in the gross estate of the decedent, regardless of where it is located. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.

(e) (1) (A) With respect to the estates of decedents who die on or after January 1, 2005, but prior to January 1, 2010, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, but prior to January 1, 2010.

(B) With respect to the estates of decedents who die on or after January 1, 2010, but prior to January 1, 2016, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section.

(C) With respect to the estates of decedents who die on or after January 1, 2016, but prior to January 1, 2017, a tax is imposed upon the transfer of the estate of each person who at the time of death was a nonresident of this state. The amount of such tax shall be computed by multiplying (i) the amount of tax determined using the schedule in subsection (g) of this section by (ii) a fraction, the numerator of which is the value of that part of the decedent's gross estate over which this state has jurisdiction for estate tax purposes, and the denominator of which is the value of the decedent's gross estate. A credit shall be allowed against such tax for any taxes paid to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made on or after January 1, 2005, provided such credit shall not exceed the amount of tax imposed by this section. In no event shall the amount of tax payable under this section exceed twenty million dollars. Such twenty-million-dollar limit shall be reduced by the amount of (I) any taxes paid to this state pursuant to section 12-642, as amended by this act, by the decedent or the decedent's estate for Connecticut taxable gifts made on or after January 1, 2016, and (II) any taxes paid by the decedent's spouse to this state pursuant to section 12-642, as amended by this act, for Connecticut taxable gifts made by the decedent on or after January 1, 2016, that are includable in the gross estate of the decedent, but in no event shall the amount be reduced below zero.

(D) With respect to the estates of decedents who die on or after January 1, 2017, no tax shall be imposed under this chapter upon the transfer of the estate of a person who at the time of death was a nonresident of this state.

(2) For a nonresident estate, the state shall have the power to levy the estate tax upon all real property situated in this state and tangible personal property having an actual situs in this state. The state is permitted to calculate the estate tax and levy said tax to the fullest extent permitted by the Constitution of the United States.

(f) (1) For purposes of the tax imposed under this section, the value of the Connecticut taxable estate shall be determined taking into account all of the deductions available under the Internal Revenue Code of 1986, specifically including, but not limited to, the deduction available under Section 2056(b)(7) of said code for a qualifying income interest for life in a surviving spouse.

(2) An election under said Section 2056(b)(7) may be made for state estate tax purposes regardless of whether any such election is made for federal estate tax purposes. The value of the gross estate shall include the value of any property in which the decedent had a qualifying income interest for life for which an election was made under this subsection.

(g) (1) With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T1	Amount of Connecticut
T2	Taxable Estate	Rate of Tax
T3	Not over $2,000,000	None
T4	Over $2,000,000
T5	but not over $2,100,000	5.085% of the excess over $0
T6	Over $2,100,000	$106,800 plus 8% of the excess
T7	but not over $2,600,000	over $2,100,000
T8	Over $2,600,000	$146,800 plus 8.8% of the excess
T9	but not over $3,100,000	over $2,600,000
T10	Over $3,100,000	$190,800 plus 9.6% of the excess
T11	but not over $3,600,000	over $3,100,000
T12	Over $3,600,000	$238,800 plus 10.4% of the excess
T13	but not over $4,100,000	over $3,600,000
T14	Over $4,100,000	$290,800 plus 11.2% of the excess
T15	but not over $5,100,000	over $4,100,000
T16	Over $5,100,000	$402,800 plus 12% of the excess
T17	but not over $6,100,000	over $5,100,000
T18	Over $6,100,000	$522,800 plus 12.8% of the excess
T19	but not over $7,100,000	over $6,100,000
T20	Over $7,100,000	$650,800 plus 13.6% of the excess
T21	but not over $8,100,000	over $7,100,000
T22	Over $8,100,000	$786,800 plus 14.4% of the excess
T23	but not over $9,100,000	over $8,100,000
T24	Over $9,100,000	$930,800 plus 15.2% of the excess
T25	but not over $10,100,000	over $9,100,000
T26	Over $10,100,000	$1,082,800 plus 16% of the excess
T27		over $10,100,000

(2) With respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2011, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T28	Amount of Connecticut
T29	Taxable Estate	Rate of Tax
T30	Not over $3,500,000	None
T31	Over $3,500,000	7.2% of the excess
T32	but not over $3,600,000	over $3,500,000
T33	Over $3,600,000	$7,200 plus 7.8% of the excess
T34	but not over $4,100,000	over $3,600,000
T35	Over $4,100,000	$46,200 plus 8.4% of the excess
T36	but not over $5,100,000	over $4,100,000
T37	Over $5,100,000	$130,200 plus 9.0% of the excess
T38	but not over $6,100,000	over $5,100,000
T39	Over $6,100,000	$220,200 plus 9.6% of the excess
T40	but not over $7,100,000	over $6,100,000
T41	Over $7,100,000	$316,200 plus 10.2% of the excess
T42	but not over $8,100,000	over $7,100,000
T43	Over $8,100,000	$418,200 plus 10.8% of the excess
T44	but not over $9,100,000	over $8,100,000
T45	Over $9,100,000	$526,200 plus 11.4% of the excess
T46	but not over $10,100,000	over $9,100,000
T47	Over $10,100,000	$640,200 plus 12% of the excess
T48		over $10,100,000

(3) With respect to the estates of decedents dying on or after January 1, 2011, but prior to January 1, 2017, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T49	Amount of Connecticut
T50	Taxable Estate	Rate of Tax
T51	Not over $2,000,000	None
T52	Over $2,000,000	7.2% of the excess
T53	but not over $3,600,000	over $2,000,000
T54	Over $3,600,000	$115,200 plus 7.8% of the excess
T55	but not over $4,100,000	over $3,600,000
T56	Over $4,100,000	$154,200 plus 8.4% of the excess
T57	but not over $5,100,000	over $4,100,000
T58	Over $5,100,000	$238,200 plus 9.0% of the excess
T59	but not over $6,100,000	over $5,100,000
T60	Over $6,100,000	$328,200 plus 9.6% of the excess
T61	but not over $7,100,000	over $6,100,000
T62	Over $7,100,000	$424,200 plus 10.2% of the excess
T63	but not over $8,100,000	over $7,100,000
T64	Over $8,100,000	$526,200 plus 10.8% of the excess
T65	but not over $9,100,000	over $8,100,000
T66	Over $9,100,000	$634,200 plus 11.4% of the excess
T67	but not over $10,100,000	over $9,100,000
T68	Over $10,100,000	$748,200 plus 12% of the excess
T69		over $10,100,000

(4) With respect to the estates of decedents dying on or after January 1, 2017, no tax shall be imposed under this chapter upon the transfer of the estate.

Sec. 2. Section 12-392 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2017, and applicable to estates of decedents dying on or after January 1, 2017):

(a) (1) For the estates of decedents dying prior to July 1, 2009, the tax imposed by this chapter shall become due at the date of the taxable transfer and shall become payable, and shall be paid, without assessment, notice or demand, to the Commissioner of Revenue Services at the expiration of nine months from the date of death, and for the estates of decedents dying on or after July 1, 2009, but prior to January 1, 2017, the tax imposed by this chapter shall become due at the date of the taxable transfer and shall become payable and shall be paid, without assessment, notice or demand, to the commissioner at the expiration of six months from the date of death. Executors, administrators, trustees, grantees, donees, beneficiaries and surviving joint owners shall be liable for the tax and for any interest or penalty thereon until it is paid, except that no executor, administrator, trustee, grantee, donee, beneficiary or surviving joint owner shall be liable for a greater sum than the value of the property actually received by him or her. If the amount of tax reported to be due on the return is not paid, for the estates of decedents dying prior to July 1, 2009, within such nine months, or for the estates of decedents dying on or after July 1, 2009, but prior to January 1, 2017, within such six months, there shall be imposed a penalty equal to ten per cent of such amount due and unpaid, or fifty dollars, whichever is greater. Such amount shall bear interest at the rate of one per cent per month or fraction thereof from the due date of such tax until the date of payment. Subject to the provisions of section 12-3a, the commissioner may waive all or part of the penalties provided under this chapter when it is proven to the commissioner's satisfaction that the failure to pay any tax was due to reasonable cause and was not intentional or due to neglect.

(2) The Commissioner of Revenue Services may, for reasonable cause shown, extend the time for payment. The commissioner may require the filing of a tentative return and the payment of the tax reported to be due thereon in connection with such extension. Any additional tax which may be found to be due on the filing of a return as allowed by such extension shall bear interest at the rate of one per cent per month or fraction thereof from the original due date of such tax to the date of actual payment.

(3) (A) Whenever there is an overpayment of the tax imposed by this chapter, the Commissioner of Revenue Services shall return to the fiduciary or transferee the overpayment which shall bear interest at the rate of two-thirds of one per cent per month or fraction thereof, such interest commencing, for the estates of decedents dying prior to July 1, 2009, from the expiration of nine months after the death of the transferor or date of payment, whichever is later, or, for the estates of decedents dying on or after July 1, 2009, but prior to January 1, 2017, from the expiration of six months after the death of the transferor or date of payment, whichever is later, as provided in subparagraphs (B) and (C) of this subdivision.

(B) In case of such overpayment pursuant to a tax return, no interest shall be allowed or paid under this subdivision on such overpayment for any month or fraction thereof prior to (i) the ninety-first day after the last day prescribed for filing the tax return associated with such overpayment, determined without regard to any extension of time for filing, or (ii) the ninety-first day after the date such return was filed, whichever is later.

(C) In case of such overpayment pursuant to an amended tax return, no interest shall be allowed or paid under this subdivision on such overpayment for any month or fraction thereof prior to the ninety-first day after the date such amended tax return was filed.

(b) (1) The tax imposed by this chapter shall be reported on a tax return which shall be filed on or before the date fixed for paying the tax, determined without regard to any extension of time for paying the tax. The commissioner shall design a form of return and forms for such additional statements or schedules as the commissioner may require to be filed. Such forms shall provide for the setting forth of such facts as the commissioner deems necessary for the proper enforcement of this chapter. The commissioner shall cause a supply of such forms to be printed and shall furnish appropriate blank forms to each taxpayer upon application or otherwise as the commissioner deems necessary. Failure to receive a form shall not relieve any person from the obligation to file a return under the provisions of this chapter. In any case in which the commissioner believes that it would be advantageous to him or her in the administration of the tax imposed by this chapter, the commissioner may require that a true copy of the federal estate tax return made to the Internal Revenue Service be provided.

(2) Any tax return or other document, including any amended tax return under section 12-398, that is required to be filed under this chapter shall be filed, and shall be treated as filed, only if filed with both the Commissioner of Revenue Services and the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, in the court of probate for the district within which real estate or tangible personal property of the decedent is situated. The return shall contain a statement, to be signed under penalty of false statement by the person who is required to make and file the return under this chapter, that the return has been filed with both the Commissioner of Revenue Services and the appropriate court of probate.

(3) (A) A tax return shall be filed, in the case of every decedent who died prior to January 1, 2005, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state, whenever the personal representative of the estate is required by the laws of the United States to file a federal estate tax return.

(B) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2005, but prior to January 1, 2010, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is two million dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(C) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2010, but prior to January 1, 2011, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over three million five hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is three million five hundred thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(D) A tax return shall be filed, in the case of every decedent who dies on or after January 1, 2011, but prior to January 1, 2017, and at the time of death was (i) a resident of this state, or (ii) a nonresident of this state whose gross estate includes any real property situated in this state or tangible personal property having an actual situs in this state. If the decedent's Connecticut taxable estate is over two million dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is two million dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

(E) The duly authorized executor or administrator shall file the return. If there is more than one executor or administrator, the return shall be made jointly by all. If there is no executor or administrator appointed, qualified and acting, each person in actual or constructive possession of any property of the decedent is constituted an executor for purposes of the tax and shall make and file a return. If in any case the executor is unable to make a complete return as to any part of the gross estate, the executor shall provide all the information available to him or her with respect to such property, including a full description, and the name of every person holding a legal or beneficial interest in the property. If the executor is unable to make a return as to any property, each person holding a legal or equitable interest in such property shall, upon notice from the commissioner, make a return as to that part of the gross estate.

(F) On or before the last day of the month next succeeding each calendar quarter, and commencing with the calendar quarter ending September 30, 2005, each court of probate shall file with the commissioner a report for the calendar quarter in such form as the commissioner may prescribe. The report shall pertain to returns filed with the court of probate during the calendar quarter.

(4) The Commissioner of Revenue Services may, for reasonable cause shown, extend the time for filing the return.

(5) If any person required to make and file the tax return under this chapter fails to file the return within the time prescribed, the commissioner may assess and compute the tax upon the best information obtainable. To the tax imposed upon the basis of such return, there shall be added an amount equal to ten per cent of such tax or fifty dollars, whichever is greater. The tax shall bear interest at the rate of one per cent per month or fraction thereof from the due date of such tax until the date of payment.

(6) The commissioner shall provide notice of any (A) deficiency assessment with respect to the payment of any tax under this chapter, (B) assessment with respect to any failure to make and file a return under this chapter by a person required to file, and (C) tax return or other document, including any amended tax return under section 12-398 that is required to be filed under this chapter to the court of probate for the district within which the commissioner contends that the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, to the court of probate for the district within which the commissioner contends that real estate or tangible personal property of the decedent is situated.

(c) No person shall be subject to a penalty under both subsections (a) and (b) of this section in relation to the same tax period.

Sec. 3. Section 12-640 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017):

For the calendar year 1991 [and each year thereafter] through the calendar year ending December 31, 2016, inclusive, a tax computed as provided in section 12-642, as amended by this act, is hereby imposed on the transfer of property by gift during such taxable year by any individual resident or nonresident provided, for the calendar year 1991, such tax shall be imposed only on those gifts which are transferred on or after September 1, 1991, and on or before December 31, 2016.

Sec. 4. Section 12-642 of the 2016 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017):

(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T70	Amount of Taxable Gifts	Rate of Tax
T71	Not over $25,000	1%
T72	Over $25,000	$250, plus 2% of the excess
T73	but not over $50,000	over $25,000
T74	Over $50,000	$750, plus 3% of the excess
T75	but not over $75,000	over $50,000
T76	Over $75,000	$1,500, plus 4% of the excess
T77	but not over $100,000	over $75,000
T78	Over $100,000	$2,500, plus 5% of the excess
T79	but not over $200,000	over $100,000
T80	Over $200,000	$7,500, plus 6% of the excess
T81		over $200,000

(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640, as amended by this act, for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T82	Amount of Taxable Gifts	Rate of Tax
T83	Over $25,000	$250, plus 2% of the excess
T84	but not over $50,000	over $25,000
T85	Over $50,000	$750, plus 3% of the excess
T86	but not over $75,000	over $50,000
T87	Over $75,000	$1,500, plus 4% of the excess
T88	but not over $100,000	over $75,000
T89	Over $100,000	$2,500, plus 5% of the excess
T90	but not over $675,000	over $100,000
T91	Over $675,000	$31,250, plus 6% of the excess
T92		over $675,000

(3) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

T93	Amount of Taxable Gifts	Rate of Tax
T94	Not over $2,000,000	None
T95	Over $2,000,000
T96	but not over $2,100,000	5.085% of the excess over $0
T97	Over $2,100,000	$106,800 plus 8% of the excess
T98	but not over $2,600,000	over $2,100,000
T99	Over $2,600,000	$146,800 plus 8.8% of the excess
T100	but not over $3,100,000	over $2,600,000
T101	Over $3,100,000	$190,800 plus 9.6% of the excess
T102	but not over $3,600,000	over $3,100,000
T103	Over $3,600,000	$238,800 plus 10.4% of the excess
T104	but not over $4,100,000	over $3,600,000
T105	Over $4,100,000	$290,800 plus 11.2% of the excess
T106	but not over $5,100,000	over $4,100,000
T107	Over $5,100,000	$402,800 plus 12% of the excess
T108	but not over $6,100,000	over $5,100,000
T109	Over $6,100,000	$522,800 plus 12.8% of the excess
T110	but not over $7,100,000	over $6,100,000
T111	Over $7,100,000	$650,800 plus 13.6% of the excess
T112	but not over $8,100,000	over $7,100,000
T113	Over $8,100,000	$786,800 plus 14.4% of the excess
T114	but not over $9,100,000	over $8,100,000
T115	Over $9,100,000	$930,800 plus 15.2% of the excess
T116	but not over $10,100,000	over $9,100,000
T117	Over $10,100,000	$1,082,800 plus 16% of the excess
T118		over $10,100,000

(4) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2011, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T119	Amount of Taxable Gifts	Rate of Tax
T120	Not over $3,500,000	None
T121	Over $3,500,000	7.2% of the excess
T122	but not over $3,600,000	over $3,500,000
T123	Over $3,600,000	$7,200 plus 7.8% of the excess
T124	but not over $4,100,000	over $3,600,000
T125	Over $4,100,000	$46,200 plus 8.4% of the excess
T126	but not over $5,100,000	over $4,100,000
T127	Over $5,100,000	$130,200 plus 9.0% of the excess
T128	but not over $6,100,000	over $5,100,000
T129	Over $6,100,000	$220,200 plus 9.6% of the excess
T130	but not over $7,100,000	over $6,100,000
T131	Over $7,100,000	$316,200 plus 10.2% of the excess
T132	but not over $8,100,000	over $7,100,000
T133	Over $8,100,000	$418,200 plus 10.8% of the excess
T134	but not over $9,100,000	over $8,100,000
T135	Over $9,100,000	$526,200 plus 11.4% of the excess
T136	but not over $10,100,000	over $9,100,000
T137	Over $10,100,000	$640,200 plus 12% of the excess
T138		over $10,100,000

(5) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2011, and prior to January 1, 2017, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640, as amended by this act, for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T139	Amount of Taxable Gifts	Rate of Tax
T140	Not over $2,000,000	None
T141	Over $2,000,000	7.2% of the excess
T142	but not over $3,600,000	over $2,000,000
T143	Over $3,600,000	$115,200 plus 7.8% of the excess
T144	but not over $4,100,000	over $3,600,000
T145	Over $4,100,000	$154,200 plus 8.4% of the excess
T146	but not over $5,100,000	over $4,100,000
T147	Over $5,100,000	$238,200 plus 9.0% of the excess
T148	but not over $6,100,000	over $5,100,000
T149	Over $6,100,000	$328,200 plus 9.6% of the excess
T150	but not over $7,100,000	over $6,100,000
T151	Over $7,100,000	$424,200 plus 10.2% of the excess
T152	but not over $8,100,000	over $7,100,000
T153	Over $8,100,000	$526,200 plus 10.8% of the excess
T154	but not over $9,100,000	over $8,100,000
T155	Over $9,100,000	$634,200 plus 11.4% of the excess
T156	but not over $10,100,000	over $9,100,000
T157	Over $10,100,000	$748,200 plus 12% of the excess
T158		over $10,100,000

(6) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during the calendar year commencing on or after January 1, 2017, no tax shall be imposed by section 12-640, as amended by this act, for the calendar year.

(b) The tax imposed by section 12-640, as amended by this act, shall be paid by the donor. If the gift tax is not paid when due the donee of any gift shall be personally liable for the tax to the extent of the value of the gift.

(c) With respect to Connecticut taxable gifts, as defined in section 12-643, as amended by this act, made by a donor during a calendar year commencing on or after January 1, 2016, but prior to January 1, 2017, the aggregate amount of tax imposed by section 12-640, as amended by this act, for all calendar years commencing on or after January 1, 2016, but prior to January 1, 2017, shall not exceed twenty million dollars.

Sec. 5. Section 12-643 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017):

(a) The term "taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, less the deductions allowed in Sections 2522 to 2524, inclusive, of said Internal Revenue Code, except in the event of repeal of the federal gift tax, then all references to the Internal Revenue Code in this section shall mean the Internal Revenue Code as in force on the day prior to the effective date of such repeal.

(b) In the administration of the tax under this chapter, the Commissioner of Revenue Services shall apply the provisions of Sections 2701 to 2704, inclusive, of said Internal Revenue Code. The words "secretary or his delegate" as used in the aforementioned sections of the Internal Revenue Code means the Commissioner of Revenue Services.

(c) The term "Connecticut taxable gifts" means taxable gifts made during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2017, that are, (1) for residents of this state, taxable gifts, wherever located, but excepting gifts of real estate or tangible personal property located outside this state, and (2) for nonresidents of this state, gifts of real estate or tangible personal property located within this state.


This act shall take effect as follows and shall amend the following sections:
Section 1	January 1, 2017, and applicable to estates of decedents dying on or after January 1, 2017	12-391(c) to (g)
Sec. 2	January 1, 2017, and applicable to estates of decedents dying on or after January 1, 2017	12-392
Sec. 3	January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017	12-640
Sec. 4	January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017	12-642
Sec. 5	January 1, 2017, and applicable to calendar years commencing on or after January 1, 2017	12-643

Statement of Purpose:

To repeal the estate and gift taxes.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]