Bill Text: NJ A5228 | 2016-2017 | Regular Session | Introduced

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Bill Title: Concerns duration of lien of tax under estate tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-12-04 - Introduced, Referred to Assembly Appropriations Committee [A5228 Detail]

Download: New_Jersey-2016-A5228-Introduced.html

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ASSEMBLY, No. 5228

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED DECEMBER 4, 2017

 

 

Sponsored by:

Assemblyman  LOUIS D. GREENWALD

District 6 (Burlington and Camden)

 

 

 

 

SYNOPSIS

     Concerns the duration of the lien of tax under the estate tax.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the duration of the lien of tax under the estate tax, amending R.S.54:38-6.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    R.S.54:38-6 is amended to read as follows:

     54:38-6.  The Director of the Division of Taxation in the Department of the Treasury shall assess and collect all taxes imposed by this chapter.  Such taxes when and as collected by the director shall be paid forthwith into the State Treasury for the exclusive use of the State, and all administrators, executors, trustees, grantees, donees and vendees, shall be personally liable for any and all such taxes until paid, for which an action at law shall lie in the name of the State.  Notwithstanding the provisions of any other law to the contrary, taxes imposed under this chapter shall remain a lien on all property of the decedent as of the date of the decedent's death [until] for a period of 15 years after the date of that death, and no longer, unless sooner paid.  No property owned by the decedent as of the date of the decedent's death may be transferred without the written consent of the director, or pursuant to such rules as the director may prescribe.

(cf: P.L.2002, c.31, s.2)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill changes the duration of the lien of tax under the New Jersey estate tax.

     Currently, pursuant to the estate tax law and pursuant to the general provisions of the State Uniform Tax Procedure Law, a tax imposed under the estate tax remains a lien on all the property of the decedent from the date of the decedent's death until the tax is paid.

     This bill curtails the lien of tax to a period of 15 years after the date of death, making the duration of the lien of tax under the New Jersey estate tax the same as that provided for the New Jersey transfer inheritance tax.