Sec. 16. 36 MRSA §4062, sub-§2-B, śC, as enacted by PL 2005, c. 12, Pt. N, §2 and affected by §4, is amended to read:

C. With respect to which an election is made, on a return filed timely with the State Tax Assessor, to treat the property as Maine qualified terminable interest property for purposes of the tax imposed by this chapter. The amount of property with respect to which such election is made may not be greater than the amount, if any, by which the applicable exclusion amount determined as of the date of the decedent's death using the Code, Section 2010(c) in effect on that date exceeds the applicable exclusion amount determined as of the date of the decedent's death using the Code, Section 2010(c) in effect on December 31, 2000. The value of Maine qualified terminable interest property is the value finally determined by the assessor in accordance with the Code and, in the case of estates that do not incur a federal estate tax, as if the estate had incurred a federal estate tax.

Sec. 17. 36 MRSA §4062, sub-§8 is enacted 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 dying before January 1, 2003, the value as finally determined for federal estate tax purposes;

B. For estates of decedents dying after December 31, 2002 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

C. For estates of decedents dying after December 31, 2002 that do not incur a federal estate tax, the value as determined by the assessor in accordance with the Code as if the estate had incurred a federal estate tax.

Sec. 18. 36 MRSA §4063, as amended by PL 2003, c. 673, Pt. D, §3, is repealed and the following enacted in its place:

§4063.__Tax on estate of resident