2012 -- H 7969

=======

LC02197

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES--ENFORCEMENT AND

COLLECTION

     Introduced By: Representative Donna M. Walsh

     Date Introduced: March 20, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 44-23-5 of the General Laws in Chapter 44-23 entitled "Estate and

1-2

Transfer Taxes - Enforcement and Collection" is hereby amended to read as follows:

1-3

     44-23-5. Appraisal of estate. – (a) If any statement filed in accordance with the

1-4

provisions of this chapter is considered to be an erroneous or incomplete statement of the

1-5

property, real, tangible personal, intangible personal, or of any part of the property, of the

1-6

decedent, the tax administrator shall give notice to the executor, administrator, heir-at-law,

1-7

beneficiary, or trustee filing the statement, to appear before the tax administrator for the purpose

1-8

of examination of and concerning the statement, and concerning all matters appertaining to the

1-9

estate and the value of the estate of the decedent; and if the executor, administrator, heir-at-law,

1-10

beneficiary, or trustee fails to appear after due notice, or if after appearance and examination of

1-11

the executor, administrator, heir-at-law, beneficiary, or trustee the tax administrator still considers

1-12

the statement to be an erroneous or incomplete statement, or if the executor, administrator, heir-

1-13

at-law, beneficiary, or trustee refuses or neglects to answer the questions propounded in reference

1-14

to the statement, the tax administrator may appraise the estate. The tax administrator shall give

1-15

notice by mail to the executor, administrator, heir-at-law, beneficiary, or trustee and to all persons

1-16

known to have a claim or interest in the estate or property to be appraised, of the time and place

1-17

of the appraisal, and the tax administrator or his or her authorized agent shall at that time and

1-18

place appraise the estate or property at its full and fair cash value as prescribed in this section; and

1-19

for that purpose the tax administrator is authorized to issue subpoenas and to compel the

2-1

attendance of witnesses and to take the evidence of the witnesses under oath if necessary,

2-2

concerning the estate or property and the value of the estate, and the witnesses shall receive the

2-3

same fees as those now paid to witnesses subpoenaed to attend the superior court. From the

2-4

appraisal and other proof relating to the estate or property, the tax administrator determines the

2-5

full and fair cash value of the estate or property upon which all taxes imposed by chapter 22 of

2-6

this title are computed and the amount of taxes to which it is liable. If no appraisal is made as

2-7

provided in this section, the tax administrator may determine the value of the property upon

2-8

which all the taxes are computed and the amount of taxes to which it is liable.

2-9

     (b) Notwithstanding the provisions of subsection 44-23-5(a), all farmland, as such term is

2-10

defined in section 44-27-2, included as part of an estate for purposes of this section and utilized

2-11

by the executor, administrator, heir-at-law, beneficiary or trustee as farmland, shall be appraised

2-12

at its use value according to applicable federal and state law and not at its full and fair cash value.

2-13

     SECTION 2. This act shall take effect upon passage.

=======

LC02197

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- ESTATE AND TRANSFER TAXES--ENFORCEMENT AND

COLLECTION

***

3-1

     This act would provide that for estate tax purposes, farmland shall be appraised at its use

3-2

value and not at its full and fair cash value.

3-3

     This act would take effect upon passage.

=======

LC02197

=======