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2013 -- H 5305 | |
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LC00641 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2013 | |
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A N A C T | |
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RELATING TO TAXATION - ESTATE AND TRANSFER TAXES - LIABILITY AND | |
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COMPUTATION | |
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Introduced By: Representatives Morgan, Costa, Trillo, Giarrusso, and Chippendale | |
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Date Introduced: February 07, 2013 | |
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Referred To: House Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Section 44-22-1.1 of the General Laws in Chapter 44-22 entitled "Estate |
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and Transfer Taxes - Liability and Computation" is hereby amended to read as follows: |
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44-22-1.1. Tax on net estate of decedent. -- (a) (1) For decedents whose death occurs on |
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or after January 1, 1992, but prior to January 1, 2002, a tax is imposed upon the transfer of the net |
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estate of every resident or nonresident decedent as a tax upon the right to transfer. The tax is a |
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sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. section 2011. |
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(2) For decedents whose death occurs on or after January 1, 2002, but prior to January 1, |
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2010 a tax is imposed upon the transfer of the net estate of every resident or nonresident decedent |
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as a tax upon the right to transfer. The tax is a sum equal to the maximum credit for state death |
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taxes allowed by 26 U.S.C. section 2011 as it was in effect as of January 1, 2001; provided, |
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however, that the tax shall be imposed only if the net taxable estate shall exceed six hundred |
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seventy-five thousand dollars ($675,000). Any scheduled increase in the unified credit provided |
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in 26 U.S.C. section 2010 in effect on January 1, 2001, or thereafter, shall not apply. |
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(3) For decedents whose death occurs on or after January 1, 2010, a tax is imposed upon |
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the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to |
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transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. |
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section 2011 as it was in effect as of January 1, 2001; provided, however, that the tax shall be |
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imposed only if the net taxable estate shall exceed eight hundred and fifty thousand dollars |
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($850,000); provided, further, beginning on January 1, 2011 and each January 1 thereafter, said |
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amount shall be adjusted by the percentage of increase in the Consumer Price Index for all Urban |
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Consumers (CPI-U) as published by the United States Department of Labor Statistics determined |
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as of September 30 of the prior calendar year; said adjustment shall be compounded annually and |
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shall be rounded up to the nearest five dollar ($5.00) increment. Any scheduled increase in the |
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unified credit provided in 26 U.S.C. section 2010 in effect on January 1, 2003, or thereafter, shall |
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not apply. |
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(4) For decedents whose death occurs on or after January 1, 2013, a tax is imposed upon |
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the transfer of the net estate of every resident or nonresident decedent as a tax upon the right to |
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transfer. The tax is a sum equal to the maximum credit for state death taxes allowed by 26 U.S.C. |
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section 2011 as it was in effect as of January 1, 2001; provided, however, that the tax shall be |
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imposed only upon that portion of the net taxable estate exceeding the federal exemption |
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established pursuant to the internal revenue code of 1954, 26 U.S.C. section 1 et seq.; provided, |
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further, beginning on January 1, 2014 and each January 1 thereafter, said amount shall be |
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adjusted by the percentage of increase in the consumer price index for all urban consumers (CPI- |
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U) as published by the United States department of labor statistics determined as of September 30 |
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of the prior calendar year; said adjustment shall be compounded annually and shall be rounded up |
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to the nearest five dollar ($5.00) increment. Any scheduled increase in the unified credit provided |
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in 26 U.S.C. section 2010 in effect on January 1, 2003, or thereafter, shall not apply. |
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(b) If the decedent's estate contains property having a tax situs not within the state, then |
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the tax determined by this section is reduced to an amount determined by multiplying the tax by a |
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fraction whose numerator is the gross estate excluding all property having a tax situs not within |
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the state at the decedent's death and whose denominator is the gross estate. In determining the |
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fraction, no deductions are considered and the gross estate is not reduced by a mortgage or other |
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indebtedness for which the decedent's estate is not liable. |
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(c) (1) The terms "gross taxable estate", "federal gross estate" or "net taxable estate" used |
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in this chapter or chapter 23 of this title has the same meaning as when used in a comparable |
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context in the laws of the United States, unless a different meaning is clearly required by the |
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provisions of this chapter or chapter 23 of this title. Any reference in this chapter or chapter 23 of |
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this title to the Internal Revenue Code or other laws of the United States means the Internal |
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Revenue Code of 1954, 26 U.S.C. section 1 et seq. |
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(2) For decedents whose death occurs on or after January 1, 2002, the terms "gross |
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taxable estate" "federal gross estate" or "net taxable estate" used in this chapter or chapter 23 of |
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this title has the same meaning as when used in a comparable context in the laws of the United |
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States, unless a different meaning is clearly required by the provisions of this chapter or chapter |
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23 of this title. Any reference in this chapter or chapter 23 of this title to the Internal Revenue |
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Code or other laws of the United States means the Internal Revenue Code of 1954, 26 U.S.C. |
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section 1 et seq., as they were in effect as of January 1, 2001, unless otherwise provided. |
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(d) All values are as finally determined for federal estate tax purposes. |
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(e) Property has a tax situs within the state of Rhode Island: |
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(1) If it is real estate or tangible personal property and has actual situs within the state of |
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Rhode Island; or |
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(2) If it is intangible personal property and the decedent was a resident. |
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SECTION 2. This act shall take effect upon passage. |
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LC00641 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO TAXATION - ESTATE AND TRANSFER TAXES - LIABILITY AND | |
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COMPUTATION | |
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This act would increase the threshold for triggering the state inheritance tax to equal the |
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federal estate tax exemption. |
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This act would take effect upon passage. |
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LC00641 | |
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