Inheritance tax.
2013-02-18 - Representative M. Smith added as coauthor
Introduced Version
HOUSE BILL No. 1230
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-4.1.
Synopsis: Inheritance tax. Provides that the inheritance tax does not
apply to property interests transferred by decedents whose deaths occur
after December 31, 2012. Specifies that certain definitions apply after
the elimination of the inheritance tax for purposes of the Indiana estate
tax and the Indiana generation-skipping transfer tax. Provides that a
county is not entitled to an inheritance tax replacement amount after
December 31, 2013.
Effective: January 1, 2013 (retroactive).
Wesco
January 14, 2013, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1230
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-4.1-1-0.5; (13)IN1230.1.1. -->
SECTION 1. IC 6-4.1-1-0.5, AS ADDED BY P.L.157-2012,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. (a) Except as
provided in subsection (b), this chapter does not apply to a property
interest transferred by a decedent whose death occurs after December
31, 2021. 2012.
(b) For purposes of IC 6-4.1-11 and IC 6-4.1-11.5, the following
statutes apply with respect to a property interest transferred by a
decedent whose death occurs after December 31, 2012:
(1) Section 4 of this chapter.
(2) Section 5 of this chapter.
(3) Section 8 of this chapter.
(4) Section 11 of this chapter.
(5) Section 13 of this chapter.
SOURCE: IC 6-4.1-1-4; (13)IN1230.1.2. -->
SECTION 2. IC 6-4.1-1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]:
Sec. 4. "Federal
state death tax credit" means the maximum federal
estate tax credit provided, with respect to estate, inheritance, legacy, or
succession taxes, under Section 2011 or Section 2102 of the Internal
Revenue Code.
SOURCE: IC 6-4.1-2-0.5; (13)IN1230.1.3. -->
SECTION 3. IC 6-4.1-2-0.5, AS ADDED BY P.L.157-2012,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-3-0.5; (13)IN1230.1.4. -->
SECTION 4. IC 6-4.1-3-0.5, AS ADDED BY P.L.157-2012,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-4-0.2; (13)IN1230.1.5. -->
SECTION 5. IC 6-4.1-4-0.2, AS ADDED BY P.L.157-2012,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.2. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-5-0.5; (13)IN1230.1.6. -->
SECTION 6. IC 6-4.1-5-0.5, AS ADDED BY P.L.157-2012,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-5-1.1; (13)IN1230.1.7. -->
SECTION 7. IC 6-4.1-5-1.1 IS REPEALED [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]. Sec. 1.1. (a) This section
applies to a property interest transferred by a decedent whose death
occurs after December 31, 2012.
(b) For purposes of determining the amount of inheritance tax
imposed under this article, a credit is allowed against the tax imposed
under section 1 of this chapter on a decedent's transfer of property
interests. The amount of the credit equals the inheritance tax imposed
under section 1 of this chapter multiplied by the percentage prescribed
in the following table:
YEAR OF
PERCENTAGE
INDIVIDUAL'S DEATH
OF CREDIT
2013
10%
2014
20%
2015
30%
2016
40%
2017
50%
2018
60%
2019
70%
2020
80%
2021
90%
(c) A person who is liable for inheritance tax imposed under this
article may claim the credit allowed under this section at the time the
person pays the tax. When the payment is made, the person collecting
the tax shall reduce the inheritance tax due by the amount of the credit
specified in subsection (b).
SOURCE: IC 6-4.1-6-0.5; (13)IN1230.1.8. -->
SECTION 8. IC 6-4.1-6-0.5, AS ADDED BY P.L.157-2012,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-7-0.5; (13)IN1230.1.9. -->
SECTION 9. IC 6-4.1-7-0.5, AS ADDED BY P.L.157-2012,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-8-0.5; (13)IN1230.1.10. -->
SECTION 10. IC 6-4.1-8-0.5, AS ADDED BY P.L.157-2012,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-9-0.5; (13)IN1230.1.11. -->
SECTION 11. IC 6-4.1-9-0.5, AS ADDED BY P.L.157-2012,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death
occurs after December 31, 2021. 2012.
SOURCE: IC 6-4.1-11-6; (13)IN1230.1.12. -->
SECTION 12. IC 6-4.1-11-6, AS AMENDED BY P.L.157-2012,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 6. (a) The department of
state revenue shall collect the Indiana estate tax and the interest
charges imposed under this chapter. The department shall remit the
money which it collects under this chapter to the state treasurer, and the
state treasurer shall deposit the money in the state general fund.
(b)
Except as provided in subsection (e), the treasurer of state shall
annually distribute t
o each county the amount determined under
subsection (c) or (d) for the county. The distribution for a particular
state fiscal year must be made before August 15 of the following state
fiscal year. Before August 15, 2013, the treasurer of state shall
distribute an inheritance tax replacement amount to each county
eligible to receive a distribution as determined under this
subsection with respect to inheritance tax collections in the state
fiscal year that began on July 1, 2012. The amount of the
inheritance tax replacement amount, if any, for each county is
equal to:
(1) the inheritance tax replacement amount distributed to the
county in 2012, if any, with respect to inheritance tax
collections in the state fiscal year that began on July 1, 2011;
multiplied by
(2) ninety-one percent (91%).
There is appropriated from the state general fund the amount necessary
to make the distributions under this subsection.
(c) For a state fiscal year ending before July 1, 2012, the department
of state revenue shall determine the inheritance tax replacement
amount for each county using the following formula:
STEP ONE: Determine the amount of inheritance tax revenue
retained by each county in each state fiscal year beginning with
the state fiscal year that began July 1, 1990, and ending with the
state fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance
tax revenue retained by each county using five (5) of the seven (7)
state fiscal years described in STEP ONE after excluding the two
(2) years in which each county retained its highest and lowest
totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO
amount minus the amount of inheritance taxes retained by the
county during the immediately preceding state fiscal year.
(d) For a state fiscal year beginning after June 30, 2012, and ending
before July 1, 2022, the department of state revenue shall determine the
inheritance tax replacement amount for each county using the
following formula:
STEP ONE: Determine the inheritance tax replacement amount
distributed to the county for the state fiscal year that began on
July 1, 2011.
STEP TWO: Multiply the amount determined under STEP ONE
by the appropriate percentage as follows:
(A) ninety-one percent (91%) for the state fiscal year
beginning July 1, 2012.
(B) Eighty-two percent (82%) for the state fiscal year
beginning July 1, 2013.
(C) Seventy-three percent (73%) for the state fiscal year
beginning July 1, 2014.
(D) Sixty-four percent (64%) for the state fiscal year beginning
July 1, 2015.
(E) Fifty-five percent (55%) for the state fiscal year beginning
July 1, 2016.
(F) Forty-five percent (45%) for the state fiscal year beginning
July 1, 2017.
(G) Thirty-six percent (36%) for the state fiscal year beginning
July 1, 2018.
(H) Twenty-seven percent (27%) for the state fiscal year
beginning July 1, 2019.
(I) Eighteen percent (18%) for the state fiscal year beginning
July 1, 2020.
(J) Nine percent (9%) for the state fiscal year beginning July
1, 2021.
(e) (c) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2022. after December
31, 2013.
SOURCE: IC 6-4.1-12-0.5; (13)IN1230.1.13. -->
SECTION 13. IC 6-4.1-12-0.5, AS ADDED BY P.L.157-2012,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. (a) For an individual
who dies after December 31, 2021, 2012, there is no inheritance tax
imposed on the decedent's transfer of property interests.
(b) Sections 1 through 12 of this chapter do not apply to a property
interest transferred by a decedent whose death occurs after December
31, 2021. 2012.
SOURCE: ; (13)IN1230.1.14. -->
SECTION 14.
An emergency is declared for this act.
