Sec. D-1. 36 MRSA §4062, sub-§1-A, ¶A, as enacted by PL 2003, c. 20, Pt. JJ, §1, is amended to read:
A. For the estates of decedents dying after December 31, 2002 and before January 1, 2005, "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 adjusted 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. The unified credit is to be determined under the Code, Section 2010 as of December 31, 2000; and
Sec. D-2. 36 MRSA §4062, sub-§2, as enacted by PL 1981, c. 451, §7, is amended to read:
2. Federal gross estate. "Federal gross estate" means the gross estate of a decedent as determined for the purpose of the federal estate tax under the laws of the United States Code.
Sec. D-3. 36 MRSA §4063, sub-§2, as amended by PL 2003, c. 20, Pt. JJ, §2, is further amended to read:
2. Values. All property values under subsection 1, paragraphs A and B are as finally determined for federal estate tax purposes, except that for estates of decedents dying after December 31, 2002 and before January 1, 2005 that do not incur a federal estate tax, all property values under subsection 1, paragraphs A and B are as finally determined by the assessor in accordance with the Code as if the estate had incurred a federal estate tax.
Sec. D-4. 36 MRSA §4064, as amended by PL 2003, c. 20, Pt. JJ, §3, is further amended to read:
§4064. Tax on estate of nonresident
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 State. When real or tangible personal property has been transferred into a trust, the tax imposed by this section applies as if the trust did not exist and the property was personally owned by the decedent. Maine property is subject to the tax imposed by this section to the extent that such property is included in the decedent's federal gross estate as finally determined for federal estate tax purposes. The amount of this tax is a sum equal to that proportion of the federal credit that the value of Maine real and tangible personal property taxed in this State that qualifies for the credit bears to the value of the decedent's total federal gross estate. All property values under this section are as finally determined for federal estate tax purposes, except that for estates of decedents dying after December 31, 2002 and before January 1, 2005 that do not incur a federal estate tax, all property values are as finally determined by the assessor in accordance with the Code as if the estate had incurred a federal estate tax. The share of the federal credit used to determine the amount of a nonresident individual's estate tax under this section is computed without regard to whether the specific real or tangible personal property located in the State is marital deduction property.
Proceeds from the sale of property are taxable under this section if those proceeds are included in the total federal gross estate and the sale was made in contemplation of death. A sale of property made within 6 months prior to the death of the grantor is deemed to be in contemplation of death within the meaning of this section.
Sec. D-5. 36 MRSA §4066, as enacted by PL 1981, c. 451, §7, is amended to read:
§4066. Discharge of personal representative's personal liability
If the personal representative makes a written application, accompanied by a copy of the final determination of the federal estate tax liability, if any, and other supporting documentation that the State Tax Assessor may require, to the State Tax Assessor assessor for determination of the amount of the tax and discharge of personal liability for that tax, the State Tax Assessor assessor, as soon as possible and in any event within one year after the making of the application, or if the application is made before the return is filed, then within one year after the return is filed, shall notify the personal representative of the amount of the tax and of any interest on that amount. The personal representative, on payment of the that amount of which he is notified, shall be is discharged from personal liability for any deficiency in tax subsequently found, after that, to be due, and shall be is entitled to a receipt or writing showing that certificate of discharge.
Sec. D-6. 36 MRSA §4068, sub-§§2 and 3, as enacted by PL 1981, c. 451, §7, are amended to read:
2. Tax liability. In all cases where the Code requires that a federal estate tax return be filed there is a Maine estate tax liability, the personal representative shall pay the tax imposed by this chapter and file a return within 9 months after the decedent's death. The return shall must be in the form prescribed by the State Tax Assessor and it shall must be accompanied by a copy of the federal estate tax return, if any, and other supporting documentation that the assessor may require.
3. No tax liability. In all cases where the Code does not require that a federal estate tax return be filed there is no Maine estate tax liability, the personal representative, surviving joint tenant of real estate or any other person whose real estate might be subject to a lien for taxes pursuant to this chapter may at any time file with the State Tax Assessor assessor in the form prescribed by the State Tax Assessor assessor a statement of the value of the federal gross estate.
Sec. D-7. 36 MRSA §4069-A, sub-§§1 and 2, as enacted by PL 1999, c. 414, §36, are amended to read:
1. Deferred payment arrangement. If the Internal Revenue Service has approved a federal estate tax deferral and installment payment arrangement under Section 6166 of the Code, the executor personal representative may elect a similar deferred payment arrangement under this section for payment of the tax imposed by this chapter, subject to acceptance by the State Tax Assessor. The assessor may approve a deferral and installment arrangement under similar circumstances and on similar terms with respect to an estate of a decedent dying after December 31, 2002 that does not incur a federal estate tax.
2. Time and manner of election; rejection by State Tax Assessor. An election under this section may be made by attaching a payment deferral election in a form prescribed by the assessor to a timely filed Maine estate tax return, in addition to a copy of the federal estate tax return as any documentation required by section 4068, and copies of all documentation required by the Internal Revenue Service and submitted in support of the a federal payment deferral. Documentation submitted to the assessor must clearly indicate the amount of Maine estate tax and interest to be paid in installments; the number of separate installments; and the due date of each installment payment. The assessor may reject the election if the terms of the proposed arrangement are substantially different from the terms of the federal arrangement. Any election not rejected in writing by the assessor within 60 days after the election is made is considered accepted.
Sec. D-8. 36 MRSA §4071, sub-§1, ¶E, as amended by PL 2003, c. 390, §21, is further amended to read:
E. The For estates of decedents dying before January 1, 2003, the amount of the federal credit.
Sec. D-9. Application. Those sections of this Part that amend the Maine Revised Statutes, Title 36, section 4068, subsections 2 and 3; section 4069-A, subsections 1 and 2; and section 4071, subsection 1, paragraph E apply retroactively to January 1, 2003.
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