Bill Text: FL S2620 | 2010 | Regular Session | Comm Sub
Bill Title: Estate Tax [WPSC]
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-04-30 - Died in Committee on Finance and Tax, companion bill(s) passed, see CS/CS/HB 1237 (Ch. 2010-132), CS/CS/SB 998 (Ch. 2010-122) [S2620 Detail]
Download: Florida-2010-S2620-Comm_Sub.html
Florida Senate - 2010 CS for SB 2620 By the Committee on Commerce; and Senator Altman 577-04361-10 20102620c1 1 A bill to be entitled 2 An act relating to the estate tax; providing a short 3 title; creating s. 198.46, F.S.; imposing a 4 retaliatory tax on property of a nonresident decedent 5 when the nonresident’s state of domicile imposes 6 inheritance, estate, or other death taxes on Florida 7 residents; creating s. 733.1051, F.S.; authorizing a 8 court to construe the terms of certain wills to define 9 the respective shares or determine beneficiaries under 10 certain circumstances; defining terms; providing for 11 nonapplication to certain dispositions; authorizing a 12 personal representative to take certain actions 13 without court order pending a determination of estate 14 distribution; limiting personal representative 15 liability; preserving certain rights to construe a 16 will; providing for retroactive operation; providing 17 effective dates. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. This act may be cited as the “Florida Taxpayers 22 Protection Act.” 23 Section 2. Section 198.46, Florida Statutes, is created to 24 read: 25 198.46 Retaliatory estate, inheritance, or other death 26 tax.— 27 (1) As used in this section, the term: 28 (a) “Nonresident” means any person who is not a resident of 29 this state but is a resident of the United States. 30 (b) “State of domicile” means the state where a person is a 31 resident. 32 (2) A tax is imposed upon the transfer of property located 33 in this state of every person who at the time of death is a 34 nonresident. The tax is imposed only if the nonresident’s state 35 of domicile imposes an estate, inheritance, or other death tax 36 on the transfer of a Florida resident’s property located in that 37 state and the amount of tax is in excess of the amount of such 38 taxes which would be imposed by Florida on transfers of such 39 nonresident’s similar property located in Florida. 40 (3) The tax due under this section shall be equal to the 41 tax that a nonresident would have to pay under the laws of his 42 or her state of domicile if he or she were a Florida resident 43 and the nonresident’s property located in Florida were located 44 in the nonresident’s state of domicile and the nonresident’s 45 property located in the state of domicile were located in 46 Florida. 47 (4) Notwithstanding any other provisions of this chapter, 48 the tax imposed by this section is due and payable, and tax 49 returns are due, on or before the last day prescribed by the 50 laws of the nonresident’s state of domicile for the payment of 51 tax or the filing of returns. 52 Section 3. Effective upon this act becoming a law, section 53 733.1051, Florida Statutes, is created to read: 54 733.1051 Limited judicial construction of will having 55 federal tax provisions.— 56 (1) Upon the application of a personal representative or a 57 person who is or may be a beneficiary who is affected by the 58 outcome of the construction, a court at any time may construe 59 the terms of a will to define the respective shares or determine 60 beneficiaries, in accordance with the intention of a testator, 61 if a disposition occurs during the applicable period and the 62 will contains a provision that: 63 (a) Includes a disposition formula referring to the terms 64 “unified credit,” “estate tax exemption,” “applicable exemption 65 amount,” “applicable credit amount,” “applicable exclusion 66 amount,” “generation-skipping transfer tax exemption,” “GST 67 exemption,” “marital deduction,” “maximum marital deduction,” 68 “unlimited marital deduction,” or “maximum charitable 69 deduction”; 70 (b) Measures a share of an estate based on the amount that 71 may pass free of federal estate tax or the amount that may pass 72 free of federal generation-skipping transfer tax; 73 (c) Otherwise makes a disposition referring to a charitable 74 deduction, marital deduction, or another provision of federal 75 estate tax or generation-skipping transfer tax law; or 76 (d) Appears to be intended to reduce or minimize the 77 federal estate tax or generation-skipping transfer tax. 78 (2) For purposes of this section: 79 (a) The term “applicable period” means a period beginning 80 January 1, 2010, and ending on the end of the day on the earlier 81 of December 31, 2010, or the day before the date that an act 82 becomes law that repeals or otherwise modifies or has the effect 83 of repealing or modifying s. 901 of the Economic Growth and Tax 84 Relief Reconciliation Act of 2001. 85 (b) A “disposition occurs” when the testator dies. 86 (3) In construing the will, the court shall consider the 87 terms and purposes of the will, the facts and circumstances 88 surrounding the creation of the will, and the testator’s 89 probable intent. In determining the testator’s probable intent, 90 the court may consider evidence relevant to the testator’s 91 intent even though the evidence contradicts an apparent plain 92 meaning of the will. 93 (4) This section does not apply to a disposition that is 94 specifically conditioned upon no federal estate or generation 95 skipping transfer tax being imposed. 96 (5)(a) Unless otherwise ordered by the court, during the 97 applicable period and without court order, the personal 98 representative administering a will containing one or more 99 provisions described in subsection (1) may: 100 1. Delay or refrain from making any distribution. 101 2. Incur and pay fees and costs reasonably necessary to 102 determine its duties and obligations, including compliance with 103 provisions of existing and reasonably anticipated future federal 104 tax laws. 105 3. Establish and maintain reserves for the payment of these 106 fees and costs and federal taxes. 107 (b) The personal representative is not liable for its 108 actions as provided in this subsection made or taken in good 109 faith. 110 (6) The provisions of this section are in addition to, and 111 not in derogation of, rights under the common law to construe a 112 will. 113 (7) This section is remedial in nature and intended to 114 provide a new or modified legal remedy. This section shall 115 operate retroactively to January 1, 2010. 116 Section 4. Except as otherwise expressly provided in this 117 act and except for this section, which shall take effect upon 118 this act becoming a law, this act shall take effect July 1, 119 2010.
