Bill Text: HI HB1140 | 2018 | Regular Session | Introduced
Bill Title: Relating To The Estate And Generation-skipping Transfer Taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB1140 Detail]
Download: Hawaii-2018-HB1140-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1140 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE ESTATE AND GENERATION-SKIPPING TRANSFER TAXES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 220, Session Laws of Hawaii 2012, enacted the Estate and Generation-Skipping Transfer Tax Reform Act, designated as chapter 236E, Hawaii Revised Statutes, which established the estate and generation-skipping transfer taxes based on the valuations, deduction, and expenses allowed for federal transfer tax purposes but with tax rates independent of the federal transfer taxes. The purpose of this Act is to close a loophole that allows a nonresident decedent to completely or substantially avoid the estate and generation-skipping transfer taxes by merely using a single member limited liability company, which is disregarded for income taxes, to hold title to real property situated in the State.
SECTION 2. Section 236E-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) A state estate tax return shall be filed in the case of every decedent whose estate is required by the laws of the United States to file a federal estate tax return. This section shall apply to a decedent who, at the time of death was:
(1) A resident of the State; or
(2) A nonresident of the State whose gross estate includes any real property situated in the State or tangible personal property having a situs in the State. Where the decedent is the sole owner of a single member limited liability company that has not elected to be taxed as a corporation, the single member limited liability company shall be disregarded for purposes of this chapter and this chapter shall be applied as if the sole member is the owner of the property."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on its approval and shall apply to decedents dying or taxable transfers occurring after December 31, 2016.
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INTRODUCED BY: |
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BY REQUEST
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Report Title:
Estate and Generation-skipping Transfer Tax
Description:
Clarifies the situs of property where the property is held by the decedent through a single member limited liability company that has not elected to be taxed as a corporation.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
