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 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 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. 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 D, §3, is repealed and the following enacted in its place: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

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. 19. 36 MRSA §4063-A, sub-§2, as enacted by PL 2001, c. 559, Pt. GG, §5 and affected by §26, is repealed.

Sec. 20. 36 MRSA §4064, first ¶, as amended by PL 2005, c. 218, §42, is further amended to read:

A tax is imposed upon the transfer of real property and tangible personal property situated in this State and held by an individual who dies prior to January 1, 2002 or after December 31, 2002 and who at the time of death was not a resident of this