HP1081, LD 1556, item 2, 123rd Maine State Legislature

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Amend the bill by striking out all of sections 1 and 2 and inserting the following:
‘Sec. 1. 36 MRSA §4062, sub-§1-A, ¶A,  as repealed and replaced by PL 2005, c. 12, Pt. N, §1 and affected by §4, is amended to read:
 
A.  For the estates of decedents dying after December 31, 2002 and before January 1, 2008, "federal credit" means the maximum credit for state death taxes determined under the Code, Section 2011 as of December 31, 2002 exclusive of the reduction of the maximum credit contained in the Code, Section 2011(b)(2); the period of limitations under the Code, Section 2011(c); and the termination provision contained in the Code, Section 2011(f). The federal taxable estate is to be determined using the applicable Code as of the date of the decedent's death, except that:
 
(1) The state death tax deduction contained in the Code, Section 2058 is to be disregarded;
 
(2) The unified credit is to be determined under the Code, Section 2010 as of December 31, 2000;
 
(3) For the estates of decedents dying after December 31, 2004, but before January 1, 2008, the federal taxable estate must be decreased by an amount equal to the value of Maine qualified terminable interest property in the estate of the decedent; and
 
(4) For the estates of decedents dying after December 31, 2004, the federal taxable estate must be increased by an amount equal to the value of Maine elective property in respect of the decedent; ~~and~~
Sec. 2. 36 MRSA §4062, sub-§1-A, ¶A-1  is enacted to read:
 
A-1. For the estates of decedents dying after December 31, 2007, "federal credit" means the maximum credit for state death taxes determined under the Code, Section 2011 as of December 31, 2007 exclusive of the reduction of the maximum credit contained in the Code, Section 2011(b)(2); the period of limitations under the Code, Section 2011(c); and the termination provision contained in the Code, Section 2011(f). The federal taxable estate is to be determined using the applicable Code as of the date of the decedent's death, except that the state death tax deduction contained in the Code, Section 2058 is to be disregarded and an amount equal to the value of Maine elective property in respect to the decedent must be added; and’
Amend the bill by inserting after section 3 the following:
‘Sec. 4. 36 MRSA §4062, sub-§8,  as enacted by PL 2005, c. 622, §17 and affected by §33, is amended to read:
 
8. Value.   When determining value for purposes of this chapter, "value" means, with respect to an estate or to property included in an estate~~, including Maine qualified terminable interest property~~:
 
A.  For estates of decedents that incur a federal estate tax, the value as finally determined for federal estate tax purposes unless the State Tax Assessor has determined a different value in accordance with the Code; or
 
B.  For estates of decedents dying after December 31, 2002, but before January 1, 2008, that do not incur a federal estate tax, the value as determined by the State Tax Assessor in accordance with the Code as if the estate had incurred a federal estate tax.
Sec. 5. 36 MRSA §4063,  as repealed and replaced by PL 2005, c. 622, §18, is amended to read:
§ 4063. Tax on estate of resident
A tax is imposed upon the transfer of the estate of every person who dies on or after January 1, 2002 and who, at the time of death, was a resident of this State. The amount of this tax is equal to the federal credit multiplied by a fraction, the numerator of which is that portion of the decedent's federal gross estate that consists of real and tangible personal property located in the State plus all intangible personal property and the denominator of which is the decedent's federal gross estate. For purposes of this section, "federal gross estate" means the decedent's federal gross estate as modified by ~~Maine qualified terminable interest property and~~ Maine elective property.
Sec. 6. 36 MRSA §4068, sub-§2, ¶B,  as enacted by PL 2005, c. 218, §43, is amended to read:
 
B.  The federal gross estate, increased by the amount of adjusted taxable gifts made by the decedent after December 31, 1976 and by the aggregate amount of any specific gift tax exemption under former Code, Section 2521 used by the decedent after September 8, 1976 exceed the exclusion and related unified credit amounts ~~specified in section 4062, subsection 1-A~~.’
Amend the bill in section 5 in the 2nd line (page 2, line 5 in L.D.) by striking out the following: "2007" and inserting the following: '2008'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
 
SUMMARY
This amendment changes the application date of the bill from deaths occurring on or after January 1, 2007 to deaths occurring on or after January 1, 2008. It also makes technical changes to the estate tax law necessary to accomplish the intent of the bill.
FISCAL NOTE REQUIRED
(See attached)

HP1081, LR 1104, item 2, First Special Session - 123rd Legislature, page