Bill Text: DE HB265 | 2009-2010 | 145th General Assembly | Draft

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Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To The Estate Tax.

Sponsorship: Partisan Bill (Democrat 7)

Status: (Introduced - Dead) 2010-01-26 - Stricken [HB265 Detail]

Download: Delaware-2009-HB265-Draft.html

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SPONSOR:	Rep. Longhurst & Rep. Gilligan & Rep. Schwartzkopf & Sen. DeLuca & Sen. Adams & Sen. Cook & Sen. Blevins

HOUSE OF REPRESENTATIVES

145th GENERAL ASSEMBLY

HOUSE BILL NO. 265

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE ESTATE TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

Section 1. Amend §1502(b), Title 30, Delaware Code by striking said subsection in its entirety and substituting in lieu thereof the following:

"(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."

Section 2. Amend §1502, Title 30, Delaware Code by adding a new subsection (c) to read as follows:

"(c) Amount of Tax; Decedents Dying after June 30, 2009. �

(1)     Except as provided in paragraphs (2) through (3) of this subsection and §1503 of this title, the amount of tax shall be determined using:

a.       the amount of the credit allowable by §2011 of the Internal Revenue Code as it was in effect as of January 1, 2001; and

b.      other provisions of the federal estate tax laws in effect on the date of the decedent's death.

(2)     Except as provided in paragraph (3) of this paragraph and §1503 of this title, if the federal estate tax is not in effect on the date of the decedent's death, the amount of tax shall be determined using:

a.       the amount of the credit allowable by §2011 of the Internal Revenue Code as it was in effect as of January 1, 2001; and

b.      other provisions of federal estate tax laws in effect on the date immediately preceding the effective date of the repeal of the federal estate tax. 

(3)     The tax under this subsection shall be determined without regard to any deduction for State death taxes allowed under §2058 of the Internal Revenue Code."

Section 3. This Act shall be effective for decedents dying after June 30, 2009.

SYNOPSIS

This Act reinstates Delaware's estate tax.Prior to 2002, the Internal Revenue Code allowed states to effectively share estate tax revenue with the federal government. From 2002 to 2005, the states' share of this arrangement was phased-out.

Under this Act, Delaware's estate tax will be calculated using the rate schedule for state tax credits available under federal law in 2001.This Act recognizes other updates to federal estate tax law that have occurred since 2001.