Bill Text: MN HF2486 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Gift tax repealed.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2014-02-27 - Introduction and first reading, referred to Taxes [HF2486 Detail]
Download: Minnesota-2013-HF2486-Introduced.html
1.2relating to taxation; estate and gift; repealing the gift tax; amending Minnesota
1.3Statutes 2013 Supplement, sections 270B.01, subdivision 8; 270B.03, subdivision
1.41; 291.005, subdivision 1; 291.03, subdivision 1; repealing Minnesota Statutes
1.52013 Supplement, sections 292.16; 292.17; 292.18; 292.19; 292.20; 292.21.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is
1.8amended to read:
1.9 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
1.10stated otherwise, "Minnesota tax laws" means:
1.11 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
1.12chapters 115B, 289A (except taxes imposed under sections298.01 ,
298.015 , and
298.24 ),
1.13290, 290A, 291,292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax
1.14administered by the commissioner pursuant to any tax agreement between the state and
1.15the Indian tribal government, and includes any laws for the assessment, collection, and
1.16enforcement of those taxes, refunds, and fees; and
1.17 (2) section273.1315 .
1.18EFFECTIVE DATE.This section is effective retroactively for gifts made after
1.19December 31, 2013.
1.20 Sec. 2. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is
1.21amended to read:
1.22 Subdivision 1. Who may inspect. Returns and return information must, on request,
1.23be made open to inspection by or disclosure to the data subject. The request must be made
2.1in writing or in accordance with written procedures of the chief disclosure officer of the
2.2department that have been approved by the commissioner to establish the identification
2.3of the person making the request as the data subject. For purposes of this chapter, the
2.4following are the data subject:
2.5(1) in the case of an individual return, that individual;
2.6(2) in the case of an income tax return filed jointly, either of the individuals with
2.7respect to whom the return is filed;
2.8(3) in the case of a return filed by a business entity, an officer of a corporation,
2.9a shareholder owning more than one percent of the stock, or any shareholder of an S
2.10corporation; a general partner in a partnership; the owner of a sole proprietorship; a
2.11member or manager of a limited liability company; a participant in a joint venture; the
2.12individual who signed the return on behalf of the business entity; or an employee who is
2.13responsible for handling the tax matters of the business entity, such as the tax manager,
2.14bookkeeper, or managing agent;
2.15(4) in the case of an estate return:
2.16(i) the personal representative or trustee of the estate; and
2.17(ii) any beneficiary of the estate as shown on the federal estate tax return;
2.18(5) in the case of a trust return:
2.19(i) the trustee or trustees, jointly or separately; and
2.20(ii) any beneficiary of the trust as shown in the trust instrument;
2.21(6) if liability has been assessed to a transferee under section270C.58, subdivision
2.221 , the transferee is the data subject with regard to the returns and return information
2.23relating to the assessed liability;
2.24(7) in the case of an Indian tribal government or an Indian tribal government-owned
2.25entity,
2.26(i) the chair of the tribal government, or
2.27(ii) any person authorized by the tribal government; and
2.28(8) in the case of a successor as defined in section270C.57, subdivision 1 , paragraph
2.29(b), the successor is the data subject and information may be disclosed as provided by
2.30section270C.57, subdivision 4 ; and.
2.31(9) in the case of a gift return, the donor.
2.32EFFECTIVE DATE.This section is effective retroactively for gifts made after
2.33December 31, 2013.
2.34 Sec. 3. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, is
2.35amended to read:
3.1 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
3.2terms used in this chapter shall have the following meanings:
3.3 (1) "Commissioner" means the commissioner of revenue or any person to whom the
3.4commissioner has delegated functions under this chapter.
3.5 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
3.6and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
3.7 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
3.81986, as amended through January 3, 2013, but without regard to the provisions of section
3.92011, paragraph (f), of the Internal Revenue Code.
3.10 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
3.11defined by section 2011(b)(3) of the Internal Revenue Code, plus
3.12(i) the amount of deduction for state death taxes allowed under section 2058 of the
3.13Internal Revenue Code;
3.14(ii) the amount of taxable gifts, as defined in section
292.16, and made by the
3.15decedent within three years of the decedent's date of death; less
3.16(iii) (ii)(A) the value of qualified small business property under section
291.03,
3.17subdivision 9 , and the value of qualified farm property under section
291.03, subdivision
3.1810 , or (B) $4,000,000, whichever is less.
3.19 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
3.20excluding therefrom any property included therein which has its situs outside Minnesota,
3.21and (b) including therein any property omitted from the federal gross estate which is
3.22includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
3.23authorities.
3.24 (6) "Nonresident decedent" means an individual whose domicile at the time of
3.25death was not in Minnesota.
3.26 (7) "Personal representative" means the executor, administrator or other person
3.27appointed by the court to administer and dispose of the property of the decedent. If there
3.28is no executor, administrator or other person appointed, qualified, and acting within this
3.29state, then any person in actual or constructive possession of any property having a situs in
3.30this state which is included in the federal gross estate of the decedent shall be deemed
3.31to be a personal representative to the extent of the property and the Minnesota estate tax
3.32due with respect to the property.
3.33 (8) "Resident decedent" means an individual whose domicile at the time of death
3.34was in Minnesota.
3.35 (9) "Situs of property" means, with respect to:
3.36 (i) real property, the state or country in which it is located;
4.1 (ii) tangible personal property, the state or country in which it was normally kept
4.2or located at the time of the decedent's deathor for a gift of tangible personal property
4.3within three years of death, the state or country in which it was normally kept or located
4.4when the gift was executed; and
4.5 (iii) intangible personal property, the state or country in which the decedent was
4.6domiciled at deathor for a gift of intangible personal property within three years of death,
4.7the state or country in which the decedent was domiciled when the gift was executed.
4.8 For a nonresident decedent with an ownership interest in a pass-through entity
4.9with assets that include real or tangible personal property, situs of the real or tangible
4.10personal property is determined as if the pass-through entity does not exist and the real
4.11or tangible personal property is personally owned by the decedent. If the pass-through
4.12entity is owned by a person or persons in addition to the decedent, ownership of the
4.13property is attributed to the decedent in proportion to the decedent's capital ownership
4.14share of the pass-through entity.
4.15(10) "Pass-through entity" includes the following:
4.16(i) an entity electing S corporation status under section 1362 of the Internal Revenue
4.17Code;
4.18(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
4.19(iii) a single-member limited liability company or similar entity, regardless of
4.20whether it is taxed as an association or is disregarded for federal income tax purposes
4.21under Code of Federal Regulations, title 26, section301.7701 -3; or
4.22(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
4.23EFFECTIVE DATE.This section is effective retroactively for gifts made after
4.24December 31, 2013.
4.25 Sec. 4. Minnesota Statutes 2013 Supplement, section 291.03, subdivision 1, is
4.26amended to read:
4.27 Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
4.28proportion of the maximum credit for state death taxes computed under section 2011 of
4.29the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
4.30adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
4.31gross estate. The tax is reduced by:
4.32(1) the gift tax paid by the decedent under section
292.17 on gifts included in the
4.33Minnesota adjusted taxable estate and not subtracted as qualified farm or small business
4.34property; and
4.35(2) any credit allowed under subdivision 1c.
5.1 (b) The tax determined under this subdivision must not be greater than the sum of
5.2the following amounts multiplied by a fraction, the numerator of which is the Minnesota
5.3gross estate and the denominator of which is the federal gross estate:
5.4 (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
5.5multiplied by the sum of:
5.6 (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
5.7 (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
5.8Code; less
5.9(iii) the lesser of (A) the sum of the value of qualified small business property
5.10under subdivision 9, and the value of qualified farm property under subdivision 10, or
5.11(B) $4,000,000; less
5.12 (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
5.13Code; and less
5.14 (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
5.15 (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
5.16Revenue Code of 1986, as amended through December 31, 2000.
5.17EFFECTIVE DATE.This section is effective retroactively for gifts made after
5.18December 31, 2013.
5.19 Sec. 5. REPEALER.
5.20Minnesota Statutes 2013 Supplement, sections 292.16; 292.17; 292.18; 292.19;
5.21292.20; and 292.21, are repealed.
5.22EFFECTIVE DATE.This section is effective retroactively for gifts made after
5.23December 31, 2013.
1.3Statutes 2013 Supplement, sections 270B.01, subdivision 8; 270B.03, subdivision
1.41; 291.005, subdivision 1; 291.03, subdivision 1; repealing Minnesota Statutes
1.52013 Supplement, sections 292.16; 292.17; 292.18; 292.19; 292.20; 292.21.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is
1.8amended to read:
1.9 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
1.10stated otherwise, "Minnesota tax laws" means:
1.11 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
1.12chapters 115B, 289A (except taxes imposed under sections
1.13290, 290A, 291,
1.14administered by the commissioner pursuant to any tax agreement between the state and
1.15the Indian tribal government, and includes any laws for the assessment, collection, and
1.16enforcement of those taxes, refunds, and fees; and
1.17 (2) section
1.18EFFECTIVE DATE.This section is effective retroactively for gifts made after
1.19December 31, 2013.
1.20 Sec. 2. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is
1.21amended to read:
1.22 Subdivision 1. Who may inspect. Returns and return information must, on request,
1.23be made open to inspection by or disclosure to the data subject. The request must be made
2.1in writing or in accordance with written procedures of the chief disclosure officer of the
2.2department that have been approved by the commissioner to establish the identification
2.3of the person making the request as the data subject. For purposes of this chapter, the
2.4following are the data subject:
2.5(1) in the case of an individual return, that individual;
2.6(2) in the case of an income tax return filed jointly, either of the individuals with
2.7respect to whom the return is filed;
2.8(3) in the case of a return filed by a business entity, an officer of a corporation,
2.9a shareholder owning more than one percent of the stock, or any shareholder of an S
2.10corporation; a general partner in a partnership; the owner of a sole proprietorship; a
2.11member or manager of a limited liability company; a participant in a joint venture; the
2.12individual who signed the return on behalf of the business entity; or an employee who is
2.13responsible for handling the tax matters of the business entity, such as the tax manager,
2.14bookkeeper, or managing agent;
2.15(4) in the case of an estate return:
2.16(i) the personal representative or trustee of the estate; and
2.17(ii) any beneficiary of the estate as shown on the federal estate tax return;
2.18(5) in the case of a trust return:
2.19(i) the trustee or trustees, jointly or separately; and
2.20(ii) any beneficiary of the trust as shown in the trust instrument;
2.21(6) if liability has been assessed to a transferee under section
2.221
2.23relating to the assessed liability;
2.24(7) in the case of an Indian tribal government or an Indian tribal government-owned
2.25entity,
2.26(i) the chair of the tribal government, or
2.27(ii) any person authorized by the tribal government; and
2.28(8) in the case of a successor as defined in section
2.29(b), the successor is the data subject and information may be disclosed as provided by
2.30section
2.31
2.32EFFECTIVE DATE.This section is effective retroactively for gifts made after
2.33December 31, 2013.
2.34 Sec. 3. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, is
2.35amended to read:
3.1 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
3.2terms used in this chapter shall have the following meanings:
3.3 (1) "Commissioner" means the commissioner of revenue or any person to whom the
3.4commissioner has delegated functions under this chapter.
3.5 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
3.6and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
3.7 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
3.81986, as amended through January 3, 2013, but without regard to the provisions of section
3.92011, paragraph (f), of the Internal Revenue Code.
3.10 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
3.11defined by section 2011(b)(3) of the Internal Revenue Code, plus
3.12(i) the amount of deduction for state death taxes allowed under section 2058 of the
3.13Internal Revenue Code;
3.14
3.15
3.16
3.17subdivision 9
3.1810
3.19 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
3.20excluding therefrom any property included therein which has its situs outside Minnesota,
3.21and (b) including therein any property omitted from the federal gross estate which is
3.22includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
3.23authorities.
3.24 (6) "Nonresident decedent" means an individual whose domicile at the time of
3.25death was not in Minnesota.
3.26 (7) "Personal representative" means the executor, administrator or other person
3.27appointed by the court to administer and dispose of the property of the decedent. If there
3.28is no executor, administrator or other person appointed, qualified, and acting within this
3.29state, then any person in actual or constructive possession of any property having a situs in
3.30this state which is included in the federal gross estate of the decedent shall be deemed
3.31to be a personal representative to the extent of the property and the Minnesota estate tax
3.32due with respect to the property.
3.33 (8) "Resident decedent" means an individual whose domicile at the time of death
3.34was in Minnesota.
3.35 (9) "Situs of property" means, with respect to:
3.36 (i) real property, the state or country in which it is located;
4.1 (ii) tangible personal property, the state or country in which it was normally kept
4.2or located at the time of the decedent's death
4.3
4.4
4.5 (iii) intangible personal property, the state or country in which the decedent was
4.6domiciled at death
4.7
4.8 For a nonresident decedent with an ownership interest in a pass-through entity
4.9with assets that include real or tangible personal property, situs of the real or tangible
4.10personal property is determined as if the pass-through entity does not exist and the real
4.11or tangible personal property is personally owned by the decedent. If the pass-through
4.12entity is owned by a person or persons in addition to the decedent, ownership of the
4.13property is attributed to the decedent in proportion to the decedent's capital ownership
4.14share of the pass-through entity.
4.15(10) "Pass-through entity" includes the following:
4.16(i) an entity electing S corporation status under section 1362 of the Internal Revenue
4.17Code;
4.18(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
4.19(iii) a single-member limited liability company or similar entity, regardless of
4.20whether it is taxed as an association or is disregarded for federal income tax purposes
4.21under Code of Federal Regulations, title 26, section
4.22(iv) a trust to the extent the property is includible in the decedent's federal gross estate.
4.23EFFECTIVE DATE.This section is effective retroactively for gifts made after
4.24December 31, 2013.
4.25 Sec. 4. Minnesota Statutes 2013 Supplement, section 291.03, subdivision 1, is
4.26amended to read:
4.27 Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
4.28proportion of the maximum credit for state death taxes computed under section 2011 of
4.29the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal
4.30adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal
4.31gross estate. The tax is reduced by
4.32
4.33
4.34
4.35
5.1 (b) The tax determined under this subdivision must not be greater than the sum of
5.2the following amounts multiplied by a fraction, the numerator of which is the Minnesota
5.3gross estate and the denominator of which is the federal gross estate:
5.4 (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
5.5multiplied by the sum of:
5.6 (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
5.7 (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
5.8Code; less
5.9(iii) the lesser of (A) the sum of the value of qualified small business property
5.10under subdivision 9, and the value of qualified farm property under subdivision 10, or
5.11(B) $4,000,000; less
5.12 (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
5.13Code; and less
5.14 (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
5.15 (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
5.16Revenue Code of 1986, as amended through December 31, 2000.
5.17EFFECTIVE DATE.This section is effective retroactively for gifts made after
5.18December 31, 2013.
5.19 Sec. 5. REPEALER.
5.20Minnesota Statutes 2013 Supplement, sections 292.16; 292.17; 292.18; 292.19;
5.21292.20; and 292.21, are repealed.
5.22EFFECTIVE DATE.This section is effective retroactively for gifts made after
5.23December 31, 2013.
