Sec. 12-359. Reports of representatives of transferors. (a) Succession tax returns and amendments thereto. Except as herein provided, within six months after
the death of the transferor the administrator, executor, administrator for tax purposes,
administrator c.t.a. or administrator d.b.n. or administrator d.b.n., c.t.a. or, if there is no
such fiduciary, any transferee of property, the transfer of which may be taxable under
the provisions of section 12-341, 12-341b, 12-342, 12-343, 12-345 or sections 12-345b
to 12-345e, inclusive, shall file with the court of probate for the district within which
the transferor resided at the date of his or her death or, if the transferor died a nonresident
of this state, with the court of probate for the district within which the real estate or
tangible personal property is situated, a return, in duplicate, prescribed as to form by the
Commissioner of Revenue Services and bearing notice to the effect that false statements
made therein are punishable and containing all items necessary to the correct computation and assessment of the tax. Such return shall include among other things: (1) A
copy of the written instrument evidencing any transfer which may be taxable under the
provisions of subsection (c) or (d) of section 12-341 or 12-341b or of section 12-342,
12-343, 12-345 or sections 12-345b to 12-345e, inclusive, or, if there is no written
evidence, a written statement fully disclosing the circumstances under which the transfer
was made; provided, in the case of a transfer evidenced by an insurance, annuity, pension
plan, profit-sharing plan or other similar contract with an insurance company, in lieu
of such copy of the written instrument, a summary thereof may be so filed; (2) an appraisal by the fiduciary or transferee, at its fair market value on the date of decedent's
death, of each item of property, the transfer of which may be taxable under the provisions
of section 12-341, 12-341b, 12-342, 12-343, 12-345 or sections 12-345b to 12-345e,
inclusive; (3) a statement as to whether, or to what extent, the reported transfers are
conceded taxable; (4) all items claimed as deductions under the provisions of section
12-350 or 12-352, with an explanation of the circumstances under which each deduction
is allowable; (5) a statement containing the name and relationship to the transferor of
each individual, corporation, institution, society, association or trust benefiting by reason of any succession or transfer of property as set forth in sections 12-340 to 12-343,
inclusive, sections 12-345 and 12-345b to 12-345e, inclusive, and the value of the estate
passing to each such beneficiary; (6) such other information as the Commissioner of
Revenue Services may deem necessary for the correct computation and assessment of
the tax and the proper administration thereof. The fiduciary or transferee may correct
any item on the succession tax return by filing with the probate court an amendment
thereto in duplicate, prescribed as to form by the Commissioner of Revenue Services
and bearing notice to the effect that false statements made therein are punishable and
containing such changes in the return as the fiduciary desires to make, but no such
amendment shall be permitted which would change the reported value of any property
or withdraw a concession of taxability after a hearing has been held thereon pursuant
to the provisions of subsection (b) of this section and no such amendment shall be
permitted after the computation of the tax has become final. The probate court shall,
within ten days of the filing of such return or an amendment thereto, forward a certified
copy thereof to the Commissioner of Revenue Services.
(b) Hearing on objections of Commissioner of Revenue Services. Within one
hundred twenty days after the receipt of such return, or any amendment thereto, the
Commissioner of Revenue Services shall file with the fiduciary or transferee and with
such court of probate a statement in writing setting forth in detail such objections as he
may have to the valuations or concessions of taxability appearing thereon. Unless such
fiduciary or transferee concedes the correctness of the Commissioner of Revenue Services' opinion or the Commissioner of Revenue Services withdraws his objection, the
Commissioner of Revenue Services, fiduciary or transferee may file in the court of
probate for the district within which the transferor resided at the date of his death or, if
the transferor died a nonresident of this state, in the court of probate for the district
within which the real estate or tangible personal property is situated, an application for
a hearing upon those items set out in such return as to which the Commissioner of
Revenue Services objects. Such court shall assign a time and place for a hearing upon
the Commissioner of Revenue Services' objections to the return or amendment thereto
and shall cause a copy of the order of hearing to be sent to the Commissioner of Revenue
Services, such fiduciary or transferee and all other parties in interest at least fifteen days
before the time of such hearing. The commissioner or any other party in interest may
appear before such court at such hearing and be heard concerning the objections of the
Commissioner of Revenue Services. If there is no appearance on behalf of the commissioner and it appears to the court that his position with respect to any matter in dispute
ought not to be sustained, such hearing shall be adjourned for not less than ten days and
notice of the time and place of such adjourned hearing shall be given to the commissioner,
who may appear and be heard thereon. At such hearing, or adjournment thereof, the
court shall hear such objections and determine the fair market value of any property,
the reported value of which has been objected to, and the taxability of any transfer
objected to and shall enter upon its records a decree determining the fair market value
of property the value of which has been objected to and the taxability of any transfer
which has been objected to. The decree of such court shall be conclusive upon the state
and all other parties in interest unless an appeal is taken as provided for appeals from
other decrees and orders of such court. A copy of such decree shall be forwarded forthwith to the commissioner and to the fiduciary or transferee by the judge or clerk of such
court. The value of the gross taxable estate as set forth in the tax return or any amendment
thereof, or as altered by written agreement between the Commissioner of Revenue Services and such fiduciary or transferee or as set by the probate court upon a hearing under
this subsection or under subsection (b) of section 12-367 shall be the basis for computing
the succession tax.
(c) Extension of filing time. For cause shown, the Commissioner of Revenue Services may, on the written application of the fiduciary or transferee filed with said commissioner within six months after the death of the transferor, extend the time for filing
such return. Such application shall set forth the extension desired and the reasons therefor
and a copy thereof shall be filed in the court of probate for the district within which the
transferor resided at the date of his death or, if the transferor died a nonresident of this
state, in the court of probate for the district within which the real estate or tangible
personal property is situated. Unless, not later than sixty days after his receipt of such
application, the Commissioner of Revenue Services files in the court of probate, a copy
of his order denying or modifying the extension requested, the extension requested shall
be deemed granted. If the extension request is denied or modified, the fiduciary may
not later than thirty days of the receipt of such order from the Commissioner of Revenue
Services, file in such court of probate an application for an extension of time to file the
return setting forth the extension desired and the reasons therefor. The court of probate
shall assign a time and place for a hearing upon such application not less than two nor
more than four weeks after the filing thereof and shall cause a copy of the order of
hearing to be sent to the commissioner and to the fiduciary or transferee at least ten days
before the time of such hearing. The commissioner or any party in interest may appear
before such court at such hearing and be heard concerning the requested extension. For
cause shown, the court of probate may, after hearing on such application, extend the
time for filing such return. Such court, after such hearing, shall forthwith send to the
Commissioner of Revenue Services and the fiduciary or transferee a copy of any order
extending or denying extension of the time for filing such return. Further extensions may
be granted by the Commissioner of Revenue Services or probate court if the foregoing
provisions are complied with and if written application for such further extension is
filed before the expiration of the preceding extension. Failure on the part of any fiduciary
to file such return within the time herein prescribed therefor shall be sufficient cause
for the summary removal of such fiduciary upon the application of the Commissioner
of Revenue Services or any interested person.
(d) Transferee defined. As used in this chapter the word transferee shall include,
but not be limited to, a donee and a beneficiary under a will, trust or power of appointment
or under the laws of this state relating to descent and distribution.
(1949 Rev., S. 2040; 1953, S. 1147d; 1967, P.A. 558, S. 48; 1969, P.A. 676; 1971, P.A. 863, S. 5; June, 1971, P.A. 5,
S. 118; 1972, P.A. 265, S. 3-5; P.A. 74-338, S. 40, 94; P.A. 77-614, S. 139, 610; P.A. 78-195, S. 1, 4; P.A. 90-148, S. 15,
34; P.A. 95-298, S. 2, 3; P.A. 00-174, S. 60, 83.)
History: 1967 act made technical changes re appraisers in Subsec. (b); 1969 act allowed appraisal by donee, transferee
or surviving joint tenant or person designated by them if no administration granted because transferor died without leaving
property which could pass by will or laws of state; 1971 acts essentially rewrote and greatly expanded provisions of section,
required filing of return with probate court within nine months, rather than one year, of death, inserted new Subsec. (b) re
hearing on tax commissioner's objections, placed provisions re extensions for filing returns in Subsec. (c), added Subsec.
(d) defining "transferee" and deleted former Subsec. (b), effective January 1, 1972, and applicable to estates of persons
dying on and after that date (all estates of persons dying before January 1, 1972, are subject to succession or inheritance
tax laws applicable before that date and continued in force for that purpose); 1972 act added reference to fiduciary in
Subsec. (b), clarified provisions of Subsec. (c) by requiring notice of commissioner's action to fiduciary or transferee, by
setting time for filing in court if commissioner fails to act and stating who may appear before court and by requiring that
notice of court's decision go to fiduciary or transferee, and amended Subsec. (d) to replace "section" with "chapter",
effective May 18, 1972, but retroactive to January 1, 1972, and applicable to estates of persons dying on or after that date
(all estates of persons dying before January 1, 1972, are subject to succession tax laws applicable before that date and
continued in force for that purpose); P.A. 74-338 replaced reference to repealed Sec. 12-345a with reference to Secs. 12-345b to 12-345e; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1,
1979; P.A. 78-195 amended Subsec. (a) to include provisions for correction of return by fiduciary or transferee, amended
Subsec. (b) to change hearing procedure to allow for adjournment and amended Subsec. (c) replacing former provision
for thirty-day period for commissioner to act and fifteen-day period for filing with court with provision that unless commissioner modifies or denies extension request within sixty days it is deemed granted and allowing fiduciary thirty days to
file with court upon such denial or modification; P.A. 90-148 amended Subsec. (a) to require filing with the court of probate
within six months after death of transferor in lieu of nine months and Subsec. (c) to require filing with the commissioner
for extension within six months after death of transferor in lieu of nine months, effective July 1, 1990, and applicable to
the estate of any transferor whose death occurs on or after that date; P.A. 95-298 deleted requirement that the commissioner
acknowledge receipt of tax return to the Probate Court and the fiduciary of the estate, effective July 6, 1995, and applicable
to estates of persons dying on or after July 1, 1995; P.A. 00-174 amended Subsec. (a) to delete requirement that returns
be sworn to, to add provisions re form and false statements and to make a technical change, effective July 1, 2000.
Cited. 114 C. 225; 122 C. 111; 126 C. 143; 128 C. 558; 145 C. 497. Cited. 182 C. 40, 46, 48, 51.
Cited. 25 CS 249. Cited. 44 CS 263.
Subsec. (a):
Cited. 182 C. 40, 43, 46, 47. Cited. 215 C. 633, 638, 642.
Cited. 1 CA 529, 531, 532, 534, 535.
Cited. 44 CS 263. Subdiv. (2) cited. Id. Subdiv. (3) cited. Id. Subdiv. (4) cited. Id.
Subsec. (b):
Cited. 182 C. 40-44, 47-50. Cited. 215 C. 633-635, 638-641.
Cited. 1 CA 529, 531, 532.
Cited. 44 CS 263.
Secs. 12-360 to 12-362. U.S. money, bonds and bank accounts: Reports as to
ante mortem transfers dispensed with; inventory and appraisal not required.
Waiver of returns, reports, inventories and appraisals. Sections 12-360 to 12-362,
inclusive, are repealed, effective January 1, 1972, and applicable to estates of persons
dying on and after that date. All estates of persons dying before January 1, 1972, shall
be subject to the succession tax or inheritance tax laws applicable to them prior to January
1, 1972, and such laws are continued in force for that purpose.
(1949, S. 1151d-1153d; 1971, P.A. 863, S. 14.)
Sec. 12-363. Jointly-owned real property; certificate of tax payment. When
any person owning an interest in real property in joint tenancy with another or others
with the right of survivorship dies, one of the survivors or the personal representative
of the deceased joint tenant shall cause to be recorded in the land records in the town
in which such real property is situated a certificate of the probate court having jurisdiction
of the estate of such deceased joint tenant, which certificate shall refer to the instrument
by which the joint tenancy was created, the name and date of death of the deceased joint
tenant and a statement that no succession tax is due in connection with the interest of
the deceased joint tenant or that such succession tax has been fully paid, or that the
Commissioner of Revenue Services has released such real property from the operation
of any lien for succession taxes in accordance with the provisions of section 12-364, as
the case may be. Such certificate so recorded in such land records shall be conclusive
evidence that such real property is free from any claim for succession tax due the state
in respect to the interest of the deceased joint tenant in such real property.
(1949 Rev., S. 2041; 1949, 1953, S. 1148d; P.A. 77-614, S. 139, 610.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979.
Sec. 12-364. Certificate of release of lien. Regulations. Any person shall, if the
Commissioner of Revenue Services finds, upon evidence satisfactory to him, that a
joint tenant of real property situated in this state has died and that the payment of any
succession tax with respect to the interest of such deceased joint tenant in such real
property is adequately assured, or that no succession tax will become due therefrom,
be entitled to a certificate of release of lien reciting that the Commissioner of Revenue
Services has released such real property from the operation of any lien for succession
taxes with respect to the interest of such deceased joint tenant in such real property
which shall be conclusive proof that such real property has been released from the
operation of such lien. Such certificate of release of lien may be recorded in the office
of the town clerk of the town in which such real property is situated. A finding by the
commissioner that the payment of such tax is adequately assured shall be based upon
the receipt by the commissioner of a bond or other security for an amount and with
surety satisfactory to him, conditioned upon the full payment of all succession taxes
with respect to the gross taxable estate of such deceased joint tenant or upon the payment
to the commissioner of an amount satisfactory to him on account of such tax or upon
the finding by the commissioner that an executor or administrator of the estate of such
deceased joint tenant has been duly appointed in this state and that the official bond of
such administrator or executor, or, if such administrator or executor is a corporation, its
financial responsibility, furnishes adequate protection for the payment of all succession
taxes. The commissioner may adopt regulations, in accordance with the provisions of
chapter 54, that prescribe the circumstances under which a judge of the probate court
having jurisdiction of such estate is permitted to issue a certificate of release of lien,
based on a finding by said judge that payment of any succession tax with respect to
the interest of a deceased joint tenant in real property is adequately assured or that no
succession tax will become due from such property.
(1953, S. 1149d; 1959, P.A. 327; P.A. 77-614, S. 139, 610; P.A. 90-30, S. 1, 3; P.A. 91-231, S. 4; June 18 Sp. Sess.
P.A. 97-3, S. 2, 8.)
History: 1959 act provided for situation where no succession tax will become due; P.A. 77-614 substituted commissioner
of revenue services for tax commissioner, effective January 1, 1979; P.A. 90-30 eliminated required payment of a fee to
be entitled to a certificate of release of lien for succession tax; P.A. 91-231 provided for the acceptance of security other
than bonds by the commissioner; June 18 Sp. Sess. P.A. 97-3 replaced provision re filing of certificate in probate court
with provision re recording of certificate in the office of the town clerk and authorized the commissioner to adopt regulations
re circumstances under which probate judge may release tax lien in taxable estates and made technical changes, effective
January 1, 1998.
Sec. 12-365. Administration on taxable transfer. (a) If no person applies for
administration within thirty days after the death of any transferor, the commissioner
may apply to the court of probate for the district within which the transferor died a
resident or, if the transferor was not a resident of this state, to the court of probate for
the district wherein the real estate and tangible personal property owned by the transferor
is situated, for the appointment of an administrator and, after notice and hearing, such
court may appoint an administrator.
(b) If no administration has been granted upon the estate of the transferor because
of the fact that the transferor died without leaving property which could pass by his will
or by the laws of this state relating to descent and distribution, the court of probate for
the district within which the transferor resided at the date of his death or, if the transferor
died a nonresident of this state, the court of probate for the district within which the real
estate or tangible personal property is situated, may, upon its own motion or upon the
written application of the Commissioner of Revenue Services, the transferee or any
party in interest appoint an administrator for the purpose of determining and collecting
the tax due under the provisions of this chapter. Such fiduciary shall have the same
duties and powers relating to the filing of a return and relating to the collection and
payment of any such tax as if such property had belonged to the transferor at the date
of his death.
(1949 Rev., S. 2042; 1971, P.A. 863, S. 6; P.A. 77-614, S. 139, 610.)
History: 1971 act added Subsec. (b) re appointment of administrator in cases where transferor died without leaving
property which could pass by will or laws of state, effective January 1, 1972, and applicable to estates of persons dying
on and after that date (all estates of persons dying before January 1, 1972, are subject to succession or inheritance tax laws
applicable before that date and continued in force for that purpose); P.A. 77-614 substituted commissioner of revenue
services for tax commissioner, effective January 1, 1979.
Sec. 12-366. Lien for taxes. Regulations. The tax herein imposed shall be a lien
in favor of the state of Connecticut upon the real property so passing from the due date
until paid, with the interest and costs that may accrue in addition thereto; provided such
lien shall not be valid as against any lienor, mortgagee, judgment creditor or bona fide
purchaser provided they have no notice, unless and until notice of such lien is filed or
recorded in the town clerk's office or place where mortgages, liens and conveyances of
such property are required by statute to be filed or recorded. The lien upon any real
property transferred, or a portion thereof, may be discharged by the payment of such
amount as tax thereon as the Commissioner of Revenue Services may specify or by the
giving to the commissioner of a bond for such amount; or the commissioner, upon
application by the fiduciary, may make an order transferring such lien to other real
property of the estate or of the transferee, which order of transfer shall be recorded as
above. Any person shall be entitled to a certificate that the tax upon the transfer of any
real property has been paid, and such certificate may be recorded in the office of the
town clerk of the town within which such real property is situated, and it shall be conclusive proof that the tax on the transfer of such real property has been paid and such lien
discharged. The commissioner may adopt regulations in accordance with the provisions
of chapter 54 that prescribe the circumstances under which a judge of the probate court
having jurisdiction of an estate is permitted to discharge a lien by the payment of such
amount as tax on such real property as the judge may specify.
(1949 Rev., S. 2043; 1963, P.A. 440; 1967, P.A. 534; P.A. 75-502, S. 1, 2; P.A. 77-614, S. 139, 610; P.A. 90-30, S. 2,
3; June 18 Sp. Sess. P.A. 97-3, S. 3, 8.)
History: 1963 act required commissioner to furnish corporation with certificate that no tax lien attaches to intangible
personal property if requested to do so; 1967 act included in proviso re validity of lien reference to "lienor", deleted
"purchaser" and replaced "bona fide purchaser" with "purchaser for value" and deleted provision that tax lien has no
priority over rights created or acquired for value or over municipal lien; P.A. 75-502 replaced "purchaser for value" with
"bona fide purchaser" and stated that liens not valid against lienors, mortgagees, etc. "provided they have no notice"; P.A.
77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 90-30 deleted
required payment of a fee to be entitled to a certificate of release of lien for succession tax on real property; June 18 Sp.
Sess. P.A. 97-3 authorized the commissioner to adopt regulations to prescribe circumstances under which a probate judge
may discharge a lien and deleted requirement for certificate of no lien, effective January 1, 1998.
Sec. 12-367. Computation and assessment of tax; objections thereto. Refund
of overpayment. When amendment to return not required. (a) The tax imposed by
the provisions of this chapter shall be computed and assessed by the Commissioner of
Revenue Services. If the Commissioner of Revenue Services has not filed an objection
to the valuations or concessions of taxability appearing on the return as provided in
section 12-359, he shall, within one hundred twenty days of his receipt of the return
required by the provisions of said section 12-359, if such return is correctly made out,
or if he has filed such objection, within sixty days of his withdrawal of such objection
or within sixty days of a final determination by the Probate Court of such objection,
prepare a computation of the tax and, if the tax due is found to be ten dollars or more,
file a copy thereof with the Court of Probate and mail a copy to the fiduciary or transferee,
as the case may be.
(b) Within sixty days after the mailing of the computation by the Commissioner of
Revenue Services, the fiduciary or transferee or any other party in interest may make
written application to the Probate Court for a hearing upon the determination of the tax
or the computation thereof. Such application shall set forth in detail the objection to the
determination or computation of the tax and a copy of same shall be mailed to the
commissioner at the time of filing. The Probate Court shall assign a time and place for
a hearing upon such application not less than two nor more than four weeks after receipt
thereof and shall cause a copy of the order of hearing to be sent to the Commissioner
of Revenue Services and to the fiduciary or transferee and to all other parties in interest
at least ten days before the time of such hearing. The commissioner or any person interested may appear before such court at such hearing and be heard on any matter involved
in the determination of the tax or the computation thereof, including, if no hearing has
been held previously under the provisions of subsection (b) of section 12-359, any matter
which could have been heard at such a hearing. If there is no appearance on behalf of
the commissioner and it appears to the court that such computation ought to be modified,
such hearing shall be adjourned for not less than ten days and notice of the time and
place of such adjourned hearing and of any proposed change in such computation shall
be given to the commissioner, who may appear and be heard thereon. At such hearing,
or adjournment thereof, the court shall determine all matters properly before it, including
the amount of such tax and shall enter upon its records a decree for such amount. A
copy of the decree of the Probate Court shall be forwarded forthwith to the commissioner
and the fiduciary or transferee by the judge or clerk of such court. Subject only to the
provisions of subsection (d) of this section, the computation of the tax by the Commissioner of Revenue Services shall be conclusive upon the state and all persons interested
unless a hearing is held thereon as herein provided, in which case the decree of the
Probate Court shall be conclusive upon the state and all persons interested unless an
appeal is taken as provided for appeals from other decrees and orders of such court.
(c) If the fiduciary or transferee fails to file the return required by the provisions
of section 12-359 within the time prescribed therefor, the Commissioner of Revenue
Services may assess and compute the tax upon the best information obtainable, and file
a copy of such computation with the Probate Court and mail a copy thereof to the fiduciary or transferee, as the case may be. Further proceedings upon such computation shall
be taken in accordance with the provisions of subsection (b) of this section and section
12-359.
(d) The Commissioner of Revenue Services may authorize a refund of an overpayment of such tax made because (1) property was incorrectly included in the gross taxable
estate because of a mistake or error or (2) an item in an amount exceeding five hundred
dollars which would have been allowed as a deduction, in the determination of net
estate for purposes of the tax imposed under this chapter, is discovered after the tax
computation in accordance with this section has been made and the appeal period provided for in chapter 796 has run, if a claim for refund is filed with the Commissioner
of Revenue Services and the Probate Court by the fiduciary or a transferee who has paid
the tax within two years after the computation or the decree provided for in subsection
(b) of this section determining the amount of the tax in which the overpayment is included
or within two years of the date of the computation rendered by the Commissioner of
Revenue Services pursuant to a compromise agreement as provided for in section 12-355, determining the tax in which the overpayment is included. Within ninety days of
his receipt of such claim for refund the Commissioner of Revenue Services shall file
with the Court of Probate and mail to the fiduciary or transferee a revised computation
of the tax or a notice of the rejection of the claim for refund. Further proceedings upon
such revised computation or rejection shall be taken in accordance with the provisions
of subsection (b) of this section. If upon a recomputation of the tax a refund is found
due by the Commissioner of Revenue Services or by the Probate Court upon a hearing
as hereinbefore provided, the Commissioner of Revenue Services shall certify to the
Comptroller that a refund is due in an amount equal to the difference between the tax
paid and the tax actually due as shown by the recomputation, including any interest that
may be payable as provided by section 12-376. Such refund shall be paid by the Treasurer, on the order of the Comptroller, to the fiduciary or transferee who shall distribute
it ratably among the several beneficiaries equitably entitled to it.
(e) In any case in which property of the decedent is discovered after the tax computation has been made and the appeal period provided for in sections 45a-186 to 45a-193,
inclusive, has run, the fiduciary shall not be required to file an amendment to its tax
return or to pay any additional tax that would be attributable to such after-discovered
assets unless such additional tax equals or exceeds one hundred dollars.
(1949 Rev., S. 2044; 1955, S. 1150d; February, 1965, P.A. 410, S. 1; 1971, P.A. 863, S. 7; 1972, P.A. 265, S. 6.; P.A.
77-614, S. 139, 610; P.A. 78-167, S. 6, 7; 78-195, S. 2, 4; P.A. 85-356, S. 6, 9; P.A. 86-10, S. 1, 3; 86-116, S. 1, 3; P.A.
88-295, S. 1, 2; P.A. 99-121, S. 10, 28.)
History: 1965 act added Subsec. (d) re refunds of overpayments and qualified conclusiveness of decrees in Subsec. (b)
with reference to Subsec. (d); 1971 act deleted provision re review and decree of court in Subsec. (a), moved provision re
computation of tax into Subsec. (a) amending time allowed for preparation dependent upon objection to return, made Subsec.
(b) contain provisions concerning court hearing on computation to be applied for within sixty days of commissioner's
computation, deleted former provisions re hearing adjournment if commissioner not present, distinguished between conclusiveness of decrees of commissioner and court and made technical changes, effective January 1, 1972, and applicable to
estates of persons dying on or after that date (all estates of persons dying before January 1, 1972, are subject to succession
or inheritance tax laws applicable before that date and continued in force for that purpose); 1972 act made no substantive
changes; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A.
78-167 added Subsec. (e) re discovery of property valued at five hundred dollars or less after computation and time for
appeal past; P.A. 78-195 restored provisions re adjourned hearings; P.A. 85-356 amended Subsec. (d) by (1) increasing
from sixty to ninety days, the period following claim for refund within which the commissioner must file with the court
of probate a revised computation of tax or rejection of the claim for refund and (2) providing for the addition of interest
to the amount of refund, at the rate of three-fourths of one per cent for each month or fraction thereof elapsing between
the ninetieth day following receipt of claim for refund and the date of notice by the commissioner that such refund is due,
effective July 1, 1985, and applicable to estates of persons dying on or after that date; P.A. 86-10 increased minimum tax
for filing by the commission with the probate court from one dollar to ten dollars, effective July 1, 1986, and applicable
to estates of persons dying on or after that date; P.A. 86-116 amended Subsec. (d) to provide that interest would be payable
in accordance with Sec. 12-376, deleting prior provision, effective July 1, 1986, and applicable to estates of persons dying
on or after that date; P.A. 88-295 amended Subsec. (d) by allowing refund of overpayment when an amount, exceeding
five hundred dollars, which would have been allowed as a deduction in determining net taxable estate under succession
tax is discovered after the time limit for probate appeals has run, effective July 1, 1988, and applicable to the estate of any
person whose death occurs on or after July 1, 1988; P.A. 99-121 amended Subsec. (e) to modify reporting requirement
from when property valued at more than five hundred dollars to when additional tax equals or exceeds one hundred dollars,
effective July 1, 1999.
Cited. 124 C. 82; 128 C. 560; 145 C. 497. Computation should be on basis of disposition by will rather than distribution
made under a compromise agreement entered into by beneficiaries. 147 C. 406. Cited. 182 C. 40, 43, 46.
No authority, legal or equitable, granted probate court to grant supplemental tax proceeding to consider after-discovered
expenses after decree and expiration of appeal period. 22 CS 81. Cited. 31 CS 134. Estate tax refund may be made by tax
commissioner when property was incorrectly included because of error but not where value of property was incorrect. 32
CS 275. Cited. 44 CS 421.
Subsec. (a):
Cited. 215 C. 633, 636, 640, 644, 645.
Cited. 44 CS 263.
Subsec. (b):
Cited. 182 C. 40, 41, 43-46, 49, 50. Cited. 215 C. 633, 640, 643, 646.
Cited. 1 CA 529, 531-533.
Cited. 38 CS 54, 55.
Sec. 12-368. Waiver of hearing on computation of tax. Section 12-368 is repealed, effective January 1, 1972, and applicable to estates of persons dying on and after
that date. All estates of persons dying before January 1, 1972, shall be subject to the
succession tax or inheritance tax laws applicable to them prior to January 1, 1972, and
such laws are continued in force for that purpose.
(1949 Rev., S. 1154d; 1971, P.A. 863, S. 14.)
Sec. 12-369. Action for quieting title to property. Actions may be brought
against the state by any interested person for the purpose of quieting the title to any
property against the lien or claim for lien of any tax under this chapter or for the purpose
of having it determined whether any property is subject to any lien for or chargeable
with such tax or for the purpose of foreclosing any lien or mortgage upon such property
or for enforcing any rights in such property. No such action, except such foreclosure,
shall be maintained if any proceedings are pending in any court in this state wherein
the liability of such property for taxation under this chapter may be determined. All
parties interested in such property and in the taxability thereof shall be made parties to
such an action, and any interested party who refuses to join as plaintiff may be made a
defendant. Process directed to the state in such actions shall be served upon the state
by leaving a true and attested copy of the writ, summons and complaint with the commissioner or at his office with any of the employees in said office and such service shall
be sufficient service upon the state. Actions under this section affecting real property
shall be commenced in the appropriate court of the judicial district in which such real
property or any part thereof is situated. All other actions hereunder shall be brought in
the appropriate court of the judicial district in which the estate of the transferor is being
or was administered.
(1949 Rev., S. 2045; P.A. 78-280, S. 2, 127.)
History: P.A. 78-280 substituted "judicial district" for "county".
Sec. 12-370. Forms. Reciprocal exchange of information. The commissioner
shall have power to prescribe such forms as may be necessary under this chapter. He
may exchange information with the authorities of other states, territories, the federal
government, the District of Columbia and foreign countries and governmental subdivisions thereof, under reciprocal arrangements.
(1949 Rev., S. 2046; September, 1957, P.A. 13, S. 5.)
Sec. 12-371. Estates of nonresident decedents; cooperation with other states.
"Death taxes", as used in this section, shall include inheritance, succession, transfer or
estate taxes or any taxes levied against the estate of a decedent upon the occasion of his
death. When the Commissioner of Revenue Services is notified by a probate court of
the issuance of original letters testamentary or of administration in the case of the estate
of a decedent not domiciled in this state, he shall immediately notify the proper taxing
authorities of the state in which such decedent was domiciled of the filing of a petition
therefor and of the nature and value of the decedent's property, so far as such information
has come into the hands of said commissioner. No executor of the will or administrator
of the estate of such a decedent to whom original letters have been issued shall be entitled
to a final account or discharge unless he has filed with the probate court proof that all
death taxes, together with interest or penalties thereon, due the state of domicile of such
decedent, or any political subdivision thereof, have been paid or secured, or a consent
by the proper taxing authorities of the state of domicile to such final accounting or
discharge. The Commissioner of Revenue Services shall cooperate with the domiciliary
taxing authorities and furnish them with such information as may be requested with
respect to any such estate. The official or body of the domiciliary state charged with the
administration of the statutes relating to death taxes shall be deemed a party interested
in such estate to the extent that he or it may petition for an accounting therein if the death
taxes, with interest and penalties, due such domiciliary state, or a political subdivision
thereof, are not paid or secured and, upon such petition, the probate court may decree
such accounting and may decree the remission to a fiduciary appointed by the domiciliary probate court of so much of the personal property of such estate as is necessary to
insure the payment to the state of domicile, or political subdivision thereof, of the amount
of death taxes, interest and penalties due such state or political subdivision. The provisions of this section shall apply to the estate of a decedent not domiciled in this state
only if the laws of the state of his domicile contain a provision whereby this state is
given reasonable assurance of the collection of its death taxes, interest and penalties
from the estates of decedents who died domiciled in this state in cases in which such
estates are being administered by the probate court of such other state by virtue of
original letters testamentary or of administration, or if the state in which such decedent
was domiciled does not grant letters testamentary or of administration in the case of
estates of nonresidents until after letters have been issued by the state of domicile. The
provisions of this section shall be liberally construed in order to insure that the state of
domicile of a decedent shall receive any death taxes, with interest and penalties thereon,
due it from such decedent's estate. For the purpose of this section "state" shall include
any territory of the United States, the District of Columbia and the Dominion of Canada
or any province thereof.
(1949 Rev., S. 2047; P.A. 77-614, S. 139, 610.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979.
Sec. 12-372. Authority to compromise or arbitrate dispute as to decedent's
domicile. When the Commissioner of Revenue Services claims that a decedent was
domiciled in this state at the time of his death and the taxing authorities of another state
or states make a like claim on behalf of their state or states, the Commissioner of Revenue
Services may make a written agreement with the other taxing authorities and with the
executor or administrator (1) to compromise the controversy or (2) to submit the controversy to the decision of a board consisting of one or any uneven number of arbitrators
to be selected by the parties to the agreement. The executor or administrator is authorized
to make any such agreement. As used in this section and in sections 12-373 and 12-374,
"state" means any state or territory or any possession of the United States or the District
of Columbia.
(1949 Rev., S. 2048; P.A. 77-614, S. 139, 610; P.A. 97-203, S. 16, 20.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979;
P.A. 97-203 deleted requirement for Attorney General approval, effective July 1, 1997.
Sec. 12-373. Agreement of compromise to fix amount of tax. An agreement of
compromise made pursuant to section 12-372 shall fix the amount to be accepted in full
satisfaction of the tax imposed by this chapter, including any interest to the date of filing
the agreement, and shall likewise fix the amount to be accepted by the other state or
states in full satisfaction of the death taxes thereof. The amount fixed in such agreement
shall finally determine the amount of the tax imposed by this chapter without regard to
any other provision of the laws of this state. If a tax would have been imposed upon the
transfer of the decedent's estate under the provisions of chapter 217 if he had died
domiciled in this state, such agreement shall also fix the amount to be accepted in full
satisfaction of the tax imposed by said chapter, including any interest to the date of filing
the agreement, and the Commissioner of Revenue Services shall determine and assess
the tax imposed by said chapter at the amount fixed in such agreement and such determination and assessment shall finally determine the amount of the tax imposed by said
chapter, without regard to any other provision of the laws of this state.
(1949 Rev., S. 2049; 1949, S. 1155d; 1971, P.A. 863, S. 8; P.A. 77-614, S. 139, 610.)
History: 1971 act deleted requirement for decree after agreement filed in probate court of district where commissioner
claims decedent resided at time of death, effective January 1, 1972, and applicable to estates of persons dying on and after
that date (all estates of persons dying before January 1, 1972, are subject to succession or inheritance tax laws applicable
before that date and continued in force for that purpose); P.A. 77-614 substituted commissioner of revenue services for
tax commissioner, effective January 1, 1979.
Sec. 12-374. Determination of domicile by arbitration. A board of arbitration
selected pursuant to an agreement of arbitration made under section 12-372 shall hold
hearings at such times and places as it may determine, upon reasonable notice to the
parties to the agreement, all of whom shall be entitled to be heard, to present evidence
and to examine and cross-examine witnesses. The board may administer oaths, take
testimony, subpoena and require the attendance of witnesses and the production of
books, papers and documents, and issue commissions to take testimony. Subpoenas
may be issued by any member of the board. In case of failure to obey a subpoena, any
judge of the Superior Court, upon application by the board, may make an order requiring
compliance with the subpoena, and the court may punish for failure to obey the order
as for contempt. The board shall determine the domicile of the decedent at the time of
his death. This determination shall be final for purposes of imposing and collecting
death taxes, but for no other purpose. Except in respect of the issuance of subpoenas,
all questions arising in the course of the proceeding shall be determined by majority
vote of the board. The Commissioner of Revenue Services, the board or the executor
or administrator shall file the determination of the board as to domicile, the record of
the board's proceedings, and the agreement, or a duplicate, made pursuant to section
12-372, with the authority having jurisdiction to determine the death taxes in the state
determined to be the domicile and shall file copies of all such documents with the authorities that would have been empowered to determine the death taxes in each of the other
states involved. In any case where it is determined by the board that the decedent died
domiciled in this state, interest and penalties, if otherwise imposed by law, for nonpayment of death taxes shall not be charged for the period between the date of the agreement
and the date of the filing of the determination of the board as to domicile. Nothing
contained herein shall prevent at any time a written compromise, if otherwise lawful,
by all parties to the agreement made pursuant to section 12-372, fixing the amounts to
be accepted by this and any other state involved in full satisfaction of death taxes. The
compensation and expenses of the members of the board may be agreed upon among
such members and the executor or administrator and, if they cannot agree, shall be fixed
by the probate court of the state determined by the board to be the domicile of the
decedent. The amounts so agreed upon or fixed shall be deemed an administration expense and shall be payable by the executor or administrator.
(1949 Rev., S. 2050; P.A. 77-614, S. 139, 610.)
History: P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979.
PART IV
PAYMENT OF TAXES
Sec. 12-375. Tax due at death. The tax imposed by this chapter shall be due at
the death of the transferor.
(1949 Rev., S. 2051.)
Amount of tax not affected by decrease in value of estate between date of death and date of distribution. 126 C. 144.
Cited. 136 C. 141.
Sec. 12-376. Payment. Interest. Extensions. Each tax imposed by the provisions
of this chapter, which is not paid to the Commissioner of Revenue Services within six
months after the date of the death of the transferor or within six months of any moneys
received as a result of a settlement, award or judgment from any action pending on the
date of the death of the transferor, shall bear interest at the rate of one per cent per month
or fraction thereof, commencing at the expiration of such six months, until paid; but the
Commissioner of Revenue Services may, for cause shown, on the written application
of the fiduciary or transferee filed with said commissioner at or before the expiration
of such six months, extend the time for the payment of such tax or any part thereof.
Such application shall set forth the extension desired and the reasons therefor and a copy
thereof shall be filed in the court of probate for the district within which the transferor
resided at the date of his death or, if the transferor died a nonresident of this state, in
the court of probate for the district within which the real estate or tangible personal
property is situated. Unless, not later than sixty days after his receipt of such application,
the commissioner files in the court of probate a copy of his order denying or modifying
the extension requested, the extension requested shall be deemed granted. If the extension request is denied or modified, the fiduciary may not later than thirty days after the
receipt of such order from the commissioner, file in such probate court an application
for an extension of time to pay the tax setting forth the extension desired and the reasons
therefor. The court of probate shall assign a time and place for a hearing upon such
application not less than two nor more than four weeks after the filing thereof, and shall
cause copies of such order for hearing to be sent to the commissioner and to the fiduciary
or transferee at least ten days before such hearing. For cause shown, the court of probate
may, after hearing on such application, extend the time for the payment of such tax or
any part thereof for a period not to exceed thirty days after receipt by the fiduciary or
transferee of a copy of the first computation of the succession tax from the Commissioner
of Revenue Services. The commissioner or any other party in interest may appear before
such court at such hearing and be heard concerning the requested extension. Such court,
after such hearing, shall forthwith send to the commissioner and to the fiduciary or
transferee a copy of any order relating to such application. Further extensions may be
granted by the Commissioner of Revenue Services or the court if the foregoing provisions have been complied with and if written application for such further extensions is
filed before the expiration of the preceding extension. If one or more extensions have
been granted, the tax shall bear interest at the rate of one per cent per month or fraction
thereof, commencing with the expiration of six months after the death of the transferor,
until paid. Except as provided by the provisions of a will, such tax shall be paid from
property passing to the donee, beneficiary or distributee unless such recipient pays to
the fiduciary or transferee the amount thereof. Each donee, beneficiary or distributee
of the same class shall pay such percentage of the tax on property passing to such class
as his share is of such property. The tax to be allocated against a tenant for life or limited
term or an annuitant or remainderman shall be such percentage of the whole tax on
property passing to persons of the same class as the value of his interest as determined
under the provisions of section 12-353 is of the net taxable estate passing to such class
and shall be paid out of the principal fund in which any such temporary interest or
remainder exists. Whenever there is an overpayment of the tax imposed by this chapter,
exclusive of any such overpayment in relation to a computation of tax in accordance
with subsection (b) of section 12-355, the Commissioner of Revenue Services shall
return to the fiduciary or transferee the overpayment which shall bear interest at the rate
of two-thirds of one per cent per month or fraction thereof, said interest commencing
from the expiration of six months after the death of the transferor or date of payment,
whichever is later.
(1949 Rev., S. 2052; 1967, P.A. 167; 1971, P.A. 863, S. 9; June, 1971, P.A. 5, S. 119, 130; 1972, P.A. 265, S. 7; P.A.
77-614, S. 139, 610; P.A. 78-195, S. 3, 4; 78-303, S. 85, 136; 78-371, S. 3, 6; P.A. 80-307, S. 14, 31; P.A. 81-411, S. 22,
42; P.A. 86-116, S. 2, 3; P.A. 90-148, S. 16, 34; 90-303, S. 1, 2; P.A. 93-261, S. 3, 4; P.A. 95-26, S. 14, 52.)
History: 1967 act added provision re extension of time for payment of balance due on succession tax; 1971 acts made
commissioner rather than probate court initially responsible for setting extension but provided for court to act if tax
commissioner does not act on request for extension, changed fourteen-month period for payment to nine-month period
and increased interest rate from four to six per cent, effective January 1, 1972, and applicable to estates of persons dying
on and after that date (all estates of persons dying before January 1, 1972, are subject to succession or inheritance tax laws
applicable before that date and continued in force for that purpose); 1972 act required commissioner to file copy of order
granting extension with court and to mail copy to fiduciary or transferee, allowed court to set thirty-day extension for
payment starting with receipt of copy of first computation of tax, and required copies of court orders to be sent to fiduciary
or transferee as well as to commissioner, effective May 18, 1972, but retroactive to January 1, 1972, and applicable to
estates of persons dying on or after that date (all estates of persons dying before January 1, 1972, are subject to succession
tax laws applicable before that date and continued in force for that purpose); P.A. 77-614 and P.A. 78-303 substituted
commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 78-195 changed time within which
commissioner must act on extension request from thirty to sixty days and time for filing with court from fifteen days after
expiration of thirty-day period to thirty days after sixty-day period, provided that unless commissioner denies or modifies
request it is deemed approved and added Subsec. (b) re postmark as date of payment; P.A. 78-371 increased nine per cent
interest rate to twelve per cent and six per cent rate to nine per cent and required payment of six per cent interest on refunded
overpayments; P.A. 80-307 temporarily increased twelve per cent rate to fifteen per cent, nine per cent rate to eleven and
one-fourth per cent and six per cent rate to seven and one-half per cent for taxes due on or after July 1, 1980, but not later
than June 30, 1981, and excluded from interest on refunds, overpayments re computation of tax under Subsec. (b) of Sec.
12-355; P.A. 81-411 continued interest on taxes not paid when due at the rates provided under P.A. 80-307 for taxes
becoming due on or after July 1, 1980; P.A. 86-116 changed rate of interest from seven and one-half per cent per annum
to three-fourths of one per cent per month, effective July 1, 1986, and applicable to estates of persons dying on or after
that date; P.A. 90-148 amended Subsec. (a)(1) by reducing the period for payment of tax from nine to six months with a
corresponding change related to addition of interest and filing for extension and (2) by providing for interest at fifteen per
cent per annum during extensions in lieu of eleven and one-fourth per cent, effective July 1, 1990, and applicable to the
estate of any transferor whose death occurs on or after that date; P.A. 90-303 amended Subsec. (a) by providing that the
amount of overpayment returned shall bear interest at nine per cent per annum, commencing from the expiration of six
months after the death of the transferor or the date of overpayment, whichever is later, with such change replacing the
provision deleted which added interest at three-fourths of one per cent per month elapsing between the ninetieth day
following receipt of claim for refund and the date of notice by the commissioner that a refund is due, effective June 12,
1990, and applicable to the estate of any person whose death occurs on or after July 1, 1990; P.A. 93-261 amended Subsec.
(a) to require payment of interest when tax not paid within six months of any moneys received as a result of a settlement,
award or judgment from any action pending on the date of the death of the transferor, effective July 1, 1993, and applicable
to persons dying on or after October 1, 1993; P.A. 95-26 deleted Subsec. (b) re postmark as of date of payment and lowered
interest rate from fifteen per cent per annum to one per cent per month on extensions and from nine per cent per annum
to two-thirds of one per cent per month on overpayments, effective July 1, 1995, and applicable to taxes due and owing
on or after July 1, 1995, whether or not those taxes first became due before said date.
As to what provision in a will is sufficient to relieve particular bequests from tax, see 89 C. 193. Tax should be computed
on total amount of estate passing to each class, and divided proportionately among beneficiaries of each class. 93 C. 648.
Direction to executor in will to pay succession taxes held sufficient to free legacies from burden. 116 C. 448. Cited. 118
C. 242. To shift burden of tax from inter vivos transfers, will must clearly express such intention. 122 C. 127. Direction
that all taxes which become due on or in respect to estate be paid from residuary estate is not sufficient to shift burden of
succession tax on inter vivos transfer to residuary estate. 124 C. 78. As to estate taxes, see section 12-401. Former statutes
cited. 127 C. 640. Cited. 136 C. 141. Succession taxes are payable by the recipients of the property with respect to which
the tax is assessed. 142 C. 685. In absence of clear direction that proration statutes should not apply to death taxes attributable
to nontestamentary property, statutes are applicable and burden of taxes fell on recipients of that property and not on estate.
149 C. 335. In case of doubt as to meaning, the tax burden will be left where the law places it. 165 C. 376, 387.
Provision directing that all taxes be paid "without apportionment or contribution" is sufficient to overcome statutory
presumption of proration; however, such language will only be applied to property clearly contemplated by decedent to
be within the estate. 60 CA 665.
Cited. 27 CS 268.
Sec. 12-376a. Waiver of interest on tax on certain transfers. Whenever any
transfer of property is reported and a tax paid thereon under the provisions of this chapter
more than six months after the date of death of the transferor, and it appears that such
transfer could not have been known, or in good faith was not known, at the time of the
death of the transferor, or at the time any other estate of such transferor was probated,
the running of interest at one per cent per month or fraction thereof on such transfer, as
provided by section 12-376, may be waived by the Commissioner of Revenue Services
upon a finding that such transfer could not have been known, or in good faith was not
known, within six months of the date of death of the transferor. Upon such waiver by
the commissioner interest at three-fourths per cent per month or fraction thereof shall
run on the amount of tax payable on such transfer for a period from six months after the
date of death of the transferor until the date of payment of such tax to the commissioner.
(February, 1965, P.A. 440; 1971, P.A. 863, S. 10; June, 1971, P.A. 5, S. 120, 130; P.A. 77-614, S. 139, 610; P.A. 78-371, S. 4, 6; P.A. 80-307, S. 15, 31; P.A. 81-411, S. 23, 42; P.A. 90-148, S. 17, 34; P.A. 95-26, S. 15, 52.)
History: 1971 acts substituted nine-month for fourteen-month period and deleted requirement for approval of waiver
of interest by attorney general, effective January 1, 1972, and applicable to estates of persons dying on or after that date
(all estates of persons dying before January 1, 1972, are subject to succession or inheritance tax laws applicable before
that date and continued in force for that purpose); P.A. 77-614 substituted commissioner of revenue services for tax
commissioner, effective January 1, 1979; P.A. 78-371 increased nine per cent interest rate to twelve per cent and six per
cent rate to nine per cent, effective July 1, 1978, and applicable to estates of persons dying on or after that date (all estates
of persons dying before July 1, 1978, shall be subject to succession and transfer tax laws applicable before that date); P.A.
80-307 temporarily increased twelve per cent rate to fifteen per cent and nine per cent rate to eleven and one-fourth per
cent for taxes due on or after July 1, 1980, but not later than June 30, 1981; P.A. 81-411 continued interest on taxes not
paid when due at the rates provided under P.A. 80-307 with respect to taxes becoming due on or after July 1, 1980; P.A.
90-148 changed references to the period after the death of the transferor for payment of tax and the period after which
interest shall run on the tax by reducing said periods from nine months to six months, effective July 1, 1990, and applicable
to the estate of any transferor whose death occurs on or after that date; P.A. 95-26 lowered interest rate from fifteen per
cent per annum to one per cent per month with reference to Sec. 12-376 and from eleven and one-fourth per cent per annum
to three-fourths per cent per month upon waiver, effective July 1, 1995, and applicable to taxes due and owing on or after
July 1, 1995, whether or not those taxes first became due before said date.
Cited. 152 C. 338.
Sec. 12-376b. Optional payment in installments up to ten years when interest
in closely held business exceeds thirty-five per cent of gross estate. (a) Whenever
the value of an interest in a closely held business, as defined in subsection (b) of this
section, included in the gross estate of any decedent exceeds an amount determined as
thirty-five per cent of the value of such gross estate, the fiduciary of such estate may
elect to pay all or part of the tax imposed under this chapter in equal annual installments
but not in excess of ten such installments. The maximum amount of tax which may be
paid in such installments shall be an amount which bears the same ratio to the tax imposed
under this chapter with respect to such decedent's estate as the value of such interest in
a closely held business bears to the total value of such gross estate. The amount of tax
paid in such installments shall bear interest in relation to the unpaid portion of such tax
from the expiration of six months after the death of the decedent until such tax is paid
at the rate of one per cent per month or fraction thereof. If the fiduciary of such estate
elects to pay such tax or any portion thereof in accordance with this section, notice of
such election shall be filed in writing with the Commissioner of Revenue Services not
later than six months after the date of death of the decedent. The first such installment
payment, including interest, shall be due not later than sixty days immediately following
determination by said commissioner of the amount of tax applicable to such estate under
this chapter. If such interest in a closely held business is transferred from such estate or
if the fiduciary fails to make the first installment payment, including interest, or if the
fiduciary fails to make any subsequent installment payment, including interest, within
twelve months immediately following such preceding payment, such estate shall cease
to be eligible for the payment procedure allowed in accordance with this section. Whenever the tax imposed under this chapter is paid in installments as provided in this section,
the fiduciary of the estate shall deposit with the Commissioner of Revenue Services a
surety bond, or such other form of security deemed acceptable by said commissioner,
in an amount equivalent to the tax to be paid in such installments.
(b) For purposes of this section "closely held business" means (1) a trade or business
carried on as a sole proprietorship, (2) a trade or business carried on as a partnership,
provided (A) twenty per cent or more of the total capital interest in such partnership is
included in determining the gross estate of the decedent or (B) such partnership had
fifteen or fewer partners at the time of the decedent's death, or (3) a trade or business
carried on as a corporation, provided (A) twenty per cent or more in value of the voting
stock of such corporation is included in determining the gross estate of the decedent or
(B) such corporation had fifteen or fewer shareholders.
(c) The provisions of this section shall be applicable to the estate of any person
whose death occurs on or after July 1, 1985. The estate of any person whose death occurs
prior to July 1, 1985, shall be subject to the provisions of this chapter in effect at the
time of such person's death.
(P.A. 83-289, S. 1, 2; P.A. 85-530, S. 1, 2; P.A. 90-148, S. 18, 34; P.A. 95-26, S. 16, 52.)
History: P.A. 85-530 increased the maximum number of installment payments allowed from three to ten and provided
that such installments shall bear interest at a rate equivalent to that applicable for purposes of underpayment of federal
income tax on the tax due date immediately preceding the date of determination of interest for purposes of installments
payable under this section; P.A. 90-148 amended Subsec. (a) by reducing the period after the death of the decedent (1)
following which installments shall bear interest and (2) during which notice must be filed of election to pay in installments,
from nine to six months in both cases, effective July 1, 1990, and applicable to the estate of any transferor whose death
occurs on or after that date; P.A. 95-26 amended Subsec. (a) to lower interest rate from the established federal rate for
underpayment to one per cent per month, effective July 1, 1995, and applicable to taxes due and owing on or after July 1,
1995, whether or not those taxes first became due before said date.
Sec. 12-376c. Extension of time for payment when estate consists primarily of
works of art of the decedent. (a) Whenever the net taxable estate of any decedent,
hereinafter referred to as the transferor, as determined for purposes of the succession
tax under this chapter, consists primarily of works of art, as defined in subsection (b)
of this section, produced by the transferor, the actual market value of which in the
determination of the Commissioner of Revenue Services may not be ascertainable within
the period of extension for payment of said tax as granted by said commissioner in
accordance with section 12-376, said commissioner, upon request from the fiduciary
of such estate or the transferee of such works of art, may grant an extension of time to
allow the sale of such works of art determined to be necessary for payment of taxes due
under this chapter. Such extension may be in addition to any allowed in accordance
with said section 12-376, but the total of such extensions for purposes of this section
may not exceed five years in the aggregate. Any such extension of time for payment in
accordance with this section shall subject the amount of succession tax applicable with
respect to such estate to interest as provided in said section 12-376, from the expiration
of six months after the death of the transferor until the expiration of such extension or
extensions. The net taxable estate of any decedent shall be deemed to consist primarily
of such works of art when the estimated value of such works of art in the estate, according
to a determination approved by said commissioner, constitutes more than fifty per cent
of the total estimated value of the net taxable estate.
(b) "Works of art" for purposes of this section means tangible personal property
produced through the conscious use of certain skills, taste and creative imagination and
generally considered to represent a form of artistic expression, including but not limited
to sculpture, painting, drawings, photography, prints, tapestries, weavings, film videotape, folk arts and crafts, graphic design, pottery, architectural sketches and any other
such personal property considered to be art.
(c) The provisions of this section shall be applicable to the estate of any person
whose death occurs on or after July 1, 1984. The estate of any person whose death occurs
prior to July 1, 1984, shall be subject to the provisions of this chapter in effect at the
time of such person's death.
(P.A. 84-324, S. 1, 2; P.A. 90-148, S. 19, 34.)
History: P.A. 90-148 amended Subsec. (a) by reducing the period after which payment of tax shall be subject to interest
from nine to six months after the death of the transferor, effective July 1, 1990, and applicable to the estate of any transferor
whose death occurs on or after that date.
Sec. 12-376d. Tax credit for the value of a work of art accepted by the state
from the estate of a deceased artist whose net taxable estate is subject to tax under
this chapter. (a) There shall be allowed a credit against any tax due under this chapter
with respect to the estate of any decedent who produced a work of art, as defined in this
section, which the beneficiaries and the fiduciary of such decedent's estate agree to
transfer to the state of Connecticut if the state accepts such work, for use as an object
of visual, artistic and educational display, in exchange for a credit against the succession
tax applicable to the net taxable estate of such decedent. Such tax credit shall be in an
amount equivalent to the fair market value of such work of art, as determined in accordance with subsection (c) of this section, provided (1) the advisory panel established
under subsection (b) of this section, for purposes of certain determinations related to
any such tax credit, certifies that, in the opinion of a majority of its members, such
work of art should be appraised in accordance with subsection (c) of this section and
subsequently certifies that, in the opinion of a majority of its members, such work of
art should be accepted by the state in exchange for such tax credit as provided in this
section and (2) the maximum total amount of all such tax credits which may be allowed
in any single fiscal year, commencing July 1, 1987 and thereafter, whether there is one
such credit in such year or more than one, shall be two hundred thousand dollars. If the
fair market value of any such work of art so accepted by the state is less than the total
amount of tax due with respect to the estate, tax credit shall be allowed in reduction of
the amount of the total tax due. If such fair market value is in excess of the total tax due,
and the fiduciary and beneficiaries of the estate approve the transfer of such work of art
to the state for purposes of such tax credit, such fair market value shall be applied in
payment of the entire amount of tax due and the excess of such fair market value over
the amount of tax due shall, in effect, be a gift to the state. For purposes of this section
a "work of art" means any work of visual art, including but not limited to, a drawing,
painting, sculpture, mosaic, photograph, work of calligraphy or work of graphic art, and
as the term "work of art" is used in this section it may include a single work of any such
art or more than one item of such work.
(b) There shall be appointed, as part of the Connecticut Commission on Culture
and Tourism, an advisory panel to consider the proposed acceptance of any such work
of art. The advisory panel shall prepare a written statement as to acceptance or rejection
of any such work of art for the purposes of this section. In each instance said panel
shall consist of eleven members, including the executive director of the Connecticut
Commission on Culture and Tourism and two generally acknowledged experts as to the
particular type of visual art work under consideration, as determined by said executive
director, with such appointments to be made by said executive director and approved
by the Connecticut Commission on Culture and Tourism. In addition said advisory
panel shall include eight members of the General Assembly, with two of such members
appointed by the president pro tempore of the Senate, one of such members appointed
by the majority leader of the Senate, one of such members appointed by the minority
leader of the Senate, two of such members appointed by the speaker of the House of
Representatives, one of such members appointed by the majority leader of the House
of Representatives and one of such members appointed by the minority leader of the
House of Representatives.
(c) The advisory panel appointed as provided in subsection (b) of this section shall
contract with two professional appraisers possessing experience related to the type of
appraisal necessary for purposes of the work of art proposed for acceptance. Each appraiser so employed shall conduct an independent appraisal of such work of art and
submit findings as to the fair market value thereof to the advisory panel. Members of
the advisory panel shall receive no compensation for their service as such but shall be
reimbursed for their necessary expenses incurred in the performance of their duties.
(d) If the advisory panel approves the acceptance of a work of art for purposes of
such tax credit, the executive director of the Connecticut Commission on Culture and
Tourism shall submit notification in writing of such approval to the Commissioner of
Revenue Services, including all relevant documentation concerning such approval and
the amount of tax credit to be allowed. The Connecticut Commission on Culture and
Tourism is authorized by this section to accept such work of art on behalf of the state
and make whatever arrangements may be necessary with other agencies of the state for
the care and display of such work of art.
(P.A. 87-491, S. 1, 2; June 30 Sp. Sess. P.A. 03-6, S. 210(e); P.A. 04-20, S. 3; 04-205, S. 5; May Sp. Sess. P.A. 04-2,
S. 30.)
History: P.A. 87-491 effective July 1, 1987, and applicable to the estate of any artist in Connecticut whose death occurs
on or after January 1, 1987; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-20 replaced State Commission on the Arts with
Connecticut Commission on Arts, Tourism, Culture, History and Film, effective August 20, 2003; P.A. 04-205, effective
June 3, 2004, and May Sp. Sess. P.A. 04-2, effective May 12, 2004, both replaced Connecticut Commission on Arts,
Tourism, Culture, History and Film with Connecticut Commission on Culture and Tourism.