Bill Amendment: IL SB0689 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: ESTATE/GEN-SKIPPING TRANSFER
Status: 2019-06-05 - Public Act . . . . . . . . . 101-0009 [SB0689 Detail]
Download: Illinois-2019-SB0689-Senate_Amendment_001.html
Bill Title: ESTATE/GEN-SKIPPING TRANSFER
Status: 2019-06-05 - Public Act . . . . . . . . . 101-0009 [SB0689 Detail]
Download: Illinois-2019-SB0689-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 689
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2 | AMENDMENT NO. ______. Amend Senate Bill 689 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Estate and Generation-Skipping | ||||||
5 | Transfer Tax Act is amended by changing Sections 2, 3, and 4 as | ||||||
6 | follows:
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7 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
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8 | Sec. 2. Definitions.
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9 | "Federal estate tax" means the tax due to the United States | ||||||
10 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
11 | Internal Revenue Code.
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12 | "Federal generation-skipping transfer tax" means the tax | ||||||
13 | due to the
United States with respect to a taxable transfer | ||||||
14 | under Chapter 13 of the
Internal Revenue Code.
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15 | "Federal return" means the federal estate tax return with | ||||||
16 | respect to the
federal estate tax and means the federal |
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1 | generation-skipping transfer tax
return
with respect to the | ||||||
2 | federal generation-skipping transfer tax.
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3 | "Federal transfer tax" means the federal estate tax or the | ||||||
4 | federal
generation-skipping transfer tax.
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5 | "Illinois estate tax" means the tax due to this State with | ||||||
6 | respect to a
taxable transfer.
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7 | "Illinois generation-skipping transfer tax" means the tax | ||||||
8 | due to this State
with respect to a taxable transfer that gives | ||||||
9 | rise to a federal
generation-skipping transfer tax.
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10 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
11 | the Illinois
generation-skipping transfer tax.
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12 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
13 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
14 | time.
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15 | "Non-resident trust" means a trust that is not a resident | ||||||
16 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
17 | amended from time to time.
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18 | "Person" means and includes any individual, trust, estate, | ||||||
19 | partnership,
association, company or corporation.
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20 | "Qualified heir" means a qualified heir as defined in | ||||||
21 | Section 2032A(e)(1)
of the Internal Revenue Code.
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22 | "Resident trust" means a trust that is a resident of this | ||||||
23 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
24 | from time to time.
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25 | "State" means any state, territory or possession of the | ||||||
26 | United States and
the District of Columbia.
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1 | "State tax credit" means:
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2 | (a) For persons dying on or after January 1, 2003 and
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3 | through December 31, 2005, an amount
equal
to the full credit | ||||||
4 | calculable under Section 2011 or Section 2604 of the
Internal | ||||||
5 | Revenue
Code as the credit would have been computed and allowed | ||||||
6 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
7 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
8 | provided in Section 2011(b)(2) or the termination of the State | ||||||
9 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
10 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
11 | but recognizing the increased applicable exclusion
amount
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12 | through December 31, 2005.
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13 | (b) For persons dying after December 31, 2005 and on or | ||||||
14 | before December 31,
2009, and for persons dying after December | ||||||
15 | 31, 2010 and prior to January 1, 2021 , an amount equal to the | ||||||
16 | full
credit
calculable under Section 2011 or 2604 of the | ||||||
17 | Internal Revenue Code as the
credit would
have been computed | ||||||
18 | and allowed under the Internal Revenue Code as in effect on
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19 | December 31, 2001, without the reduction in the State Death Tax | ||||||
20 | Credit as
provided in
Section 2011(b)(2) or the termination of | ||||||
21 | the State Death Tax Credit as provided
in
Section 2011(f) as | ||||||
22 | enacted by the Economic Growth and Tax Relief Reconciliation
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23 | Act of
2001, but recognizing the exclusion amount of only (i) | ||||||
24 | $2,000,000 for persons dying prior to January 1, 2012, (ii) | ||||||
25 | $3,500,000 for persons dying on or after January 1, 2012 and | ||||||
26 | prior to January 1, 2013, and (iii) $4,000,000 for persons |
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1 | dying on or after January 1, 2013, and with reduction to the | ||||||
2 | adjusted taxable estate for any qualified terminable interest | ||||||
3 | property election as defined in subsection (b-1) of this | ||||||
4 | Section.
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5 | (b-1) The person required to file the Illinois return may | ||||||
6 | elect on a timely filed Illinois return a marital deduction for | ||||||
7 | qualified terminable interest property under Section | ||||||
8 | 2056(b)(7) of the Internal Revenue Code for purposes of the | ||||||
9 | Illinois estate tax that is separate and independent of any | ||||||
10 | qualified terminable interest property election for federal | ||||||
11 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
12 | the inclusion of property in the gross estate of a surviving | ||||||
13 | spouse is the same as under Section 2044 of the Internal | ||||||
14 | Revenue Code. | ||||||
15 | In the case of any trust for which a State or federal | ||||||
16 | qualified terminable interest property election is made, the | ||||||
17 | trustee may not retain non-income producing assets for more | ||||||
18 | than a reasonable amount of time without the consent of the | ||||||
19 | surviving spouse.
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20 | "Taxable transfer" means an event that gives rise to a | ||||||
21 | state tax credit,
including any credit as a result of the | ||||||
22 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
23 | Internal Revenue Code.
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24 | "Transferee" means a transferee within the meaning of | ||||||
25 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
26 | Code.
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1 | "Transferred property" means:
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2 | (1) With respect to a taxable transfer occurring at the | ||||||
3 | death of an
individual, the
deceased individual's gross | ||||||
4 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
5 | Code.
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6 | (2) With respect to a taxable transfer occurring as a | ||||||
7 | result of a
taxable termination as defined in Section | ||||||
8 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
9 | determined under Section 2622(a) of the Internal Revenue
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10 | Code.
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11 | (3) With respect to a taxable transfer occurring as a | ||||||
12 | result of a
taxable distribution as defined in Section | ||||||
13 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
14 | determined under Section 2621(a) of the Internal Revenue
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15 | Code.
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16 | (4) With respect to an event which causes the | ||||||
17 | imposition of an
additional estate tax under Section | ||||||
18 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
19 | property that was disposed of or which ceased to be used | ||||||
20 | for
the qualified use, within the meaning of Section | ||||||
21 | 2032A(c)(1) of the Internal
Revenue Code.
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22 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
23 | of the Internal
Revenue Code.
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24 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11; | ||||||
25 | 97-636, eff. 6-1-12 .)
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1 | (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
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2 | Sec. 3. Illinois estate tax.
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3 | (a) Imposition of Tax. An Illinois estate tax is imposed on | ||||||
4 | every
taxable transfer
involving transferred
property having a | ||||||
5 | tax situs within the State of Illinois.
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6 | (b) Amount of tax. On estates of persons dying before | ||||||
7 | January 1, 2003, the amount of the Illinois estate tax shall be | ||||||
8 | the state
tax credit, as defined in Section 2 of this Act, with | ||||||
9 | respect to the taxable
transfer
reduced by the lesser of:
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10 | (1) the amount of the state tax credit paid to any | ||||||
11 | other state or states;
and
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12 | (2) the amount determined by multiplying the maximum | ||||||
13 | state tax
credit allowable with respect to the taxable | ||||||
14 | transfer
by the percentage which the gross
value of the | ||||||
15 | transferred property not having a tax situs in Illinois | ||||||
16 | bears
to the gross value of the total transferred property. | ||||||
17 | (c) On estates of persons dying on or after January 1, 2003 | ||||||
18 | and prior to January 1, 2021 , the amount of the Illinois estate | ||||||
19 | tax shall be the state
tax credit, as defined in Section 2 of | ||||||
20 | this Act, reduced by the amount determined by multiplying the | ||||||
21 | state tax
credit with respect to the taxable transfer
by the | ||||||
22 | percentage which the gross
value of the transferred property | ||||||
23 | not having a tax situs in Illinois bears
to the gross value of | ||||||
24 | the total transferred property.
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25 | (d) No tax shall be imposed under this Act for persons | ||||||
26 | dying on or after January 1, 2021. |
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1 | (Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
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2 | (35 ILCS 405/4) (from Ch. 120, par. 405A-4)
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3 | Sec. 4. Illinois generation-skipping transfer tax.
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4 | (a) Imposition of tax. An Illinois generation-skipping | ||||||
5 | transfer tax is
imposed on every taxable transfer resulting in | ||||||
6 | federal generation-skipping
transfer tax involving transferred | ||||||
7 | property having a tax situs within the
State of Illinois.
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8 | (b) Amount of tax. The amount of the Illinois | ||||||
9 | generation-skipping transfer
tax shall be the maximum state tax | ||||||
10 | credit allowable with respect to the
taxable transfer, reduced | ||||||
11 | by the lesser of:
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12 | (1) the amount of the state tax credit paid to any | ||||||
13 | other state or states; and
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14 | (2) the amount determined by multiplying the maximum | ||||||
15 | state tax credit
allowable with respect to the taxable | ||||||
16 | transfer by the percentage which the
gross value of the | ||||||
17 | transferred property not having a tax situs in Illinois
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18 | bears to the gross value of the total transferred property.
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19 | (c) No tax shall be imposed under this Act for transfers | ||||||
20 | occurring on or after January 1, 2021. | ||||||
21 | (Source: P.A. 86-737.)
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22 | Section 99. Effective date. This Act takes effect on | ||||||
23 | January 1, 2021, but does not take effect at all unless Senate | ||||||
24 | Joint Resolution Constitutional Amendment No. 1 of the 101st |
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1 | General Assembly is approved by the voters prior to that | ||||||
2 | date.".
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