HP0340, LD 501, item 1, An Act To Amend the Estate Tax Laws

An Act To Amend the Estate Tax Laws

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §4102, sub-§5, as enacted by PL 2011, c. 380, Pt. M, §9, is amended to read:

5. Maine exclusion amount. "Maine exclusion amount" means $2,000,000 for the estates of decedents who die after December 31, 2012 but before January 1, 2016 and $1,000,000 for the estates of decedents who die on or after January 1, 2016.

Sec. 2. 36 MRSA §4103, sub-§1, as enacted by PL 2011, c. 380, Pt. M, §9, is amended to read:

1. Imposition of tax; decedents who die after December 31, 2012 but before January 1, 2016. A tax is imposed on the transfer of the Maine taxable estate of every person who, at the time of death, was a resident of this State. The amount of tax for the estates of decedents who die after December 31, 2012 but before January 1, 2016 is determined as provided in this section subsection.

A. If the Maine taxable estate is $2,000,000 or less, the tax is $0.

B. If the Maine taxable estate is more than $2,000,000 but no more than $5,000,000, the tax is 8% of the excess over $2,000,000.

C. If the Maine taxable estate is more than $5,000,000 but no more than $8,000,000, the tax is $240,000 plus 10% of the excess over $5,000,000.

D. If the Maine taxable estate is more than $8,000,000, the tax is $540,000 plus 12% of the excess over $8,000,000.

The amount of this tax is multiplied by a fraction, the numerator of which is the value of that portion of the decedent's adjusted federal gross estate that consists of real and tangible personal property located in this State plus the value of all intangible personal property and the denominator of which is the value of the decedent's adjusted federal gross estate.

Sec. 3. 36 MRSA §4103, sub-§1-A is enacted to read:

1-A. Imposition of tax; decedents who die on or after January 1, 2016. A tax is imposed on the transfer of the Maine taxable estate of every person who, at the time of death, was a resident of this State. The amount of tax for the estates of decedents who die on or after January 1, 2016 is determined as provided in this subsection.

A. If the Maine taxable estate is $1,000,000 or less, the tax is $0.

B. If the Maine taxable estate is more than $1,000,000 but no more than $5,000,000, the tax is 8% of the excess over $1,000,000.

C. If the Maine taxable estate is more than $5,000,000 but no more than $8,000,000, the tax is $240,000 plus 10% of the excess over $5,000,000.

D. If the Maine taxable estate is more than $8,000,000, the tax is $540,000 plus 12% of the excess over $8,000,000.

summary

This bill reduces the $2,000,000 Maine exclusion amount for the Maine estate tax to $1,000,000 for the estates of decedents who die on or after January 1, 2016.

HP0340 LD 501	Session - 127th Maine Legislature		LR 1359 Item 1
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