Bill Text: IN HB1542 | 2013 | Regular Session | Introduced
Bill Title: Inheritance tax.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Ways and Means [HB1542 Detail]
Download: Indiana-2013-HB1542-Introduced.html
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, 2017. 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 the
inheritance tax replacement amount is calculated in the same manner
that it was calculated between 1997 and 2012. (Current law provides
that a county is not eligible for a replacement amount unless it receives
a replacement amount for inheritance tax collections in state fiscal year
2011-2012.) Phases out inheritance tax replacement amount
distributions from 2013 to 2017.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(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, 2017:
(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.
2011 or Section 2102 of the Internal Revenue Code.
(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
2015
2016
2017
(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).
(b) Except as provided in subsection
(c)
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: FOUR: Multiply the amount determined under
STEP ONE THREE by the appropriate percentage as follows:
(A) Ninety-one percent (91%) for the state fiscal year
beginning July 1, 2012. Ninety percent (90%) for
distributions made in 2013.
(B) Eighty-two percent (82%) for the state fiscal year
beginning July 1, 2013. Seventy percent (70%) for
distributions made in 2014.
(C) Seventy-three percent (73%) for the state fiscal year
beginning July 1, 2014. Fifty percent (50%) for
distributions made in 2015.
(D) Sixty-four percent (64%) for the state fiscal year beginning
July 1, 2015. Thirty percent (30%) for distributions made
in 2016.
(E) Fifty-five percent (55%) for the state fiscal year beginning
July 1, 2016. Ten percent (10%) for distributions made in
2017.
(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) (d) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2022. after December
31, 2017.
(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,
