Bill Text: IN SB0232 | 2013 | Regular Session | Introduced

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Bill Title: Elimination of the inheritance tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-01-07 - First reading: referred to Committee on Appropriations [SB0232 Detail]

Download: Indiana-2013-SB0232-Introduced.html

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Introduced Version

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SENATE BILL No. 232

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 6-4.1.

Synopsis: Elimination of the inheritance tax. Provides that the inheritance tax does not apply to property interests transferred by decedents whose deaths occur after December 31, 2013. Specifies that certain definitions apply after the elimination of the inheritance tax for purposes of the Indiana estate tax and the Indiana generation-skipping transfer tax. Prohibits the treasurer of state from distributing an inheritance tax replacement amount to any county for a state fiscal year beginning after June 30, 2013.

Effective: July 1, 2013.

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Smith J

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    January 7, 2013, read first time and referred to Committee on Appropriations.

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Introduced

First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

SENATE BILL No. 232

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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-4.1-1-0.5; (13)IN0232.1.1. -->     SECTION 1. IC 6-4.1-1-0.5, AS ADDED BY P.L.157-2012, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. (a) Except as provided in subsection (b), this chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.
    (b) For purposes of IC 6-4.1-11 and IC 6-4.1-11.5, the following statutes apply with respect to a property interest transferred by a decedent whose death occurs after December 31, 2013:
        (1) Section 4 of this chapter.
        (2) Section 5 of this chapter.
        (3) Section 8 of this chapter.
        (4) Section 11 of this chapter.
        (5) Section 13 of this chapter.

SOURCE: IC 6-4.1-1-4; (13)IN0232.1.2. -->     SECTION 2. IC 6-4.1-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. "Federal state death tax credit" means the maximum federal estate tax credit provided, with respect to estate, inheritance, legacy, or succession taxes, under Section

2011 or Section 2102 of the Internal Revenue Code.

SOURCE: IC 6-4.1-2-0.5; (13)IN0232.1.3. -->     SECTION 3. IC 6-4.1-2-0.5, AS ADDED BY P.L.157-2012, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-3-0.5; (13)IN0232.1.4. -->     SECTION 4. IC 6-4.1-3-0.5, AS ADDED BY P.L.157-2012, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-4-0.2; (13)IN0232.1.5. -->     SECTION 5. IC 6-4.1-4-0.2, AS ADDED BY P.L.157-2012, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.2. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-5-0.5; (13)IN0232.1.6. -->     SECTION 6. IC 6-4.1-5-0.5, AS ADDED BY P.L.157-2012, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-5-1.1; (13)IN0232.1.7. -->     SECTION 7. IC 6-4.1-5-1.1, AS ADDED BY P.L.157-2012, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1.1. (a) This section applies to a property interest transferred by a decedent whose death occurs after December 31, 2012. in calendar year 2013.
    (b) For purposes of determining the amount of inheritance tax imposed under this article, a credit is allowed against the tax imposed under section 1 of this chapter on a decedent's transfer of property interests. The amount of the credit equals the inheritance tax imposed under section 1 of this chapter multiplied by the percentage prescribed in the following table:
    YEAR OF     PERCENTAGE
    INDIVIDUAL'S DEATH     OF CREDIT
    2013     10%
    2014     20%
    2015     30%
    2016     40%
    2017     50%
    2018     60%
    2019     70%
    2020     80%

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    2021     90%
ten percent (10%).
    (c) A person who is liable for inheritance tax imposed under this article may claim the credit allowed under this section at the time the person pays the tax. When the payment is made, the person collecting the tax shall reduce the inheritance tax due by the amount of the credit specified in subsection (b).

SOURCE: IC 6-4.1-6-0.5; (13)IN0232.1.8. -->     SECTION 8. IC 6-4.1-6-0.5, AS ADDED BY P.L.157-2012, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-7-0.5; (13)IN0232.1.9. -->     SECTION 9. IC 6-4.1-7-0.5, AS ADDED BY P.L.157-2012, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-8-0.5; (13)IN0232.1.10. -->     SECTION 10. IC 6-4.1-8-0.5, AS ADDED BY P.L.157-2012, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-9-0.5; (13)IN0232.1.11. -->     SECTION 11. IC 6-4.1-9-0.5, AS ADDED BY P.L.157-2012, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter does not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.

SOURCE: IC 6-4.1-11-6; (13)IN0232.1.12. -->     SECTION 12. IC 6-4.1-11-6, AS AMENDED BY P.L.157-2012, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. (a) The department of state revenue shall collect the Indiana estate tax and the interest charges imposed under this chapter. The department shall remit the money which it collects under this chapter to the state treasurer, and the state treasurer shall deposit the money in the state general fund.
    (b) Except as provided in subsection (e), Before August 15, 2013, the treasurer of state shall annually distribute an inheritance tax replacement amount to each county the amount determined eligible to receive a distribution as determined under subsection (c) or (d) for the county. The distribution for a particular state fiscal year must be made before August 15 of the following state fiscal year that began on July 1, 2012. There is appropriated from the state general fund the amount necessary to make the distributions under this subsection.

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    (c) For a state fiscal year ending before July 1, 2012, the department of state revenue shall determine the inheritance tax replacement amount for each county using the following formula:
        STEP ONE: Determine the amount of inheritance tax revenue retained by each county in each state fiscal year beginning with the state fiscal year that began July 1, 1990, and ending with the state fiscal year that ends June 30, 1997.
        STEP TWO: Determine the average annual amount of inheritance tax revenue retained by each county using five (5) of the seven (7) state fiscal years described in STEP ONE after excluding the two (2) years in which each county retained its highest and lowest totals of inheritance tax revenue.
        STEP THREE: Determine the remainder of the STEP TWO amount minus the amount of inheritance taxes retained by the county during the immediately preceding state fiscal year.
    (d) (c) For a the state fiscal year beginning after June 30, 2012, and ending before July 1, 2022, 2012, the department of state revenue shall determine the inheritance tax replacement amount, if any, for each county using the following formula:
        STEP ONE: Determine the inheritance tax replacement amount distributed to the county, if any, for the state fiscal year that began on July 1, 2011.
        STEP TWO: Multiply the amount determined under STEP ONE by the appropriate percentage as follows:
            (A) ninety-one percent (91%). for the state fiscal year beginning July 1, 2012.
            (B) Eighty-two percent (82%) for the state fiscal year beginning July 1, 2013.
            (C) Seventy-three percent (73%) for the state fiscal year beginning July 1, 2014.
            (D) Sixty-four percent (64%) for the state fiscal year beginning July 1, 2015.
            (E) Fifty-five percent (55%) for the state fiscal year beginning July 1, 2016.
            (F) Forty-five percent (45%) for the state fiscal year beginning July 1, 2017.
            (G) Thirty-six percent (36%) for the state fiscal year beginning July 1, 2018.
            (H) Twenty-seven percent (27%) for the state fiscal year beginning July 1, 2019.
            (I) Eighteen percent (18%) for the state fiscal year beginning July 1, 2020.

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            (J) Nine percent (9%) for the state fiscal year beginning July 1, 2021.
    (e) A county is not entitled to a distribution under subsection (b) (d) The treasurer of state may not distribute an inheritance tax replacement amount to any county for a state fiscal year beginning after June 30, 2022. 2013.

SOURCE: IC 6-4.1-12-0.5; (13)IN0232.1.13. -->     SECTION 13. IC 6-4.1-12-0.5, AS ADDED BY P.L.157-2012, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. (a) For an individual who dies after December 31, 2021, 2013, there is no inheritance tax imposed on the decedent's transfer of property interests.
    (b) Sections 1 through 12 of this chapter do not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021. 2013.