Sec. 12-642. Rate of tax. (a)(1) With respect to calendar years commencing prior
to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at
a rate of the taxable gifts made by the donor during the calendar year set forth in the
following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
| Not over $25,000 | 1% |
Over $25,000
but not over $50,000 | $250, plus 2% of the excess
over $25,000 |
Over $50,000
but not over $75,000 | $750, plus 3% of the excess
over $50,000 |
Over $75,000
but not over $100,000 | $1,500, plus 4% of the excess
over $75,000 |
Over $100,000
but not over $200,000 | $2,500, plus 5% of the excess
over $100,000 |
Over $200,000
| $7,500, plus 6% of the excess
over $200,000 |
(2) With respect to the calendar year commencing January 1, 2001, the tax imposed
by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by
the donor during the calendar year set forth in the following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
Over $25,000
but not over $50,000 | $250, plus 2% of the excess
over $25,000 |
Over $50,000
but not over $75,000 | $750, plus 3% of the excess
over $50,000 |
Over $75,000
but not over $100,000 | $1,500, plus 4% of the excess
over $75,000 |
Over $100,000
but not over $675,000 | $2,500, plus 5% of the excess
over $100,000 |
Over $675,000
| $31,250, plus 6% of the excess
over $675,000 |
(3) With respect to the calendar year commencing January 1, 2002, the tax imposed
by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by
the donor during the calendar year set forth in the following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
Over $50,000
but not over $75,000 | $750, plus 3% of the excess
over $50,000 |
Over $75,000
but not over $100,000 | $1,500, plus 4% of the excess
over $75,000 |
Over $100,000
but not over $700,000 | $2,500, plus 5% of the excess
over $100,000 |
Over $700,000
| $32,500, plus 6% of the excess
over $700,000 |
(4) With respect to the calendar year commencing January 1, 2003, the tax imposed
by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by
the donor during the calendar year set forth in the following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
Over $75,000
but not over $100,000 | $1,500, plus 4% of the excess
over $75,000 |
Over $100,000
but not over $700,000 | $2,500, plus 5% of the excess
over $100,000 |
Over $700,000
| $32,500, plus 6% of the excess
over $700,000 |
(5) With respect to the calendar year commencing January 1, 2004, the tax imposed
by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by
the donor during the calendar year set forth in the following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
Over $100,000
but not over $850,000 | $2,500, plus 5% of the excess
over $100,000 |
Over $850,000
| $40,000, plus 6% of the excess
over $850,000 |
(6) With respect to the calendar year commencing January 1, 2005, the tax imposed
by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by
the donor during the calendar year set forth in the following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
| Over $950,000 | $45,000, plus 6% of the excess
over $950,000 |
(7) With respect to the calendar year commencing January 1, 2006, and each calendar year thereafter, the tax imposed by section 12-640 for the calendar year shall be at
a rate of the taxable gifts made by the donor during the calendar year set forth in the
following schedule:
| Amount of Taxable Gifts |
Rate of Tax |
Over $1,000,000
| $47,500, plus 6% of the excess
over $1,000,000 |
(b) The tax imposed by section 12-640 shall be paid by the donor. If the gift tax is
not paid when due the donee of any gift shall be personally liable for the tax to the extent
of the value of the gift.
(June Sp. Sess. P.A. 91-3, S. 138, 168; P.A. 00-170, S. 8, 42; May 9 Sp. Sess. P.A. 02-1, S. 76; June 30 Sp. Sess. P.A.
03-1, S. 99.)
History: June Sp. Sess. P.A. 91-3, S. 138 effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; P.A. 00-170 amended Subsec. (a) to modify the rate structure and to provide for a phase-out of the tax on gifts
under $1,000,000, which phase-out will be complete after January 1, 2006, effective May 26, 2000; May 9 Sp. Sess. P.A.
02-1 amended Subsec. (a) to delay by two years the phase-out of the tax on gifts under $1,000,000, effective July 1, 2002,
and applicable to income years commencing on or after January 1, 2002; June 30 Sp. Sess. P.A. 03-1 amended Subsec.
(a) to extend by two years the phaseout of the tax on gifts under one million dollars, effective August 16, 2003, and
applicable to taxable years commencing on or after January 1, 2003.
Sec. 12-643. Definition of taxable gifts. The term "taxable gifts" means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section
2503 and Sections 2511 to 2514, inclusive, and Sections 2516 to 2519, inclusive, of the
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, less the deductions allowed in
Sections 2522 to 2524, inclusive, of said Internal Revenue Code. In the administration
of the tax under this chapter, the Commissioner of Revenue Services shall apply the
provisions of Sections 2701 to 2704, inclusive, of said Internal Revenue Code. The
words "secretary or his delegate" as used in the aforementioned sections of the Internal
Revenue Code means the Commissioner of Revenue Services.
(June Sp. Sess. P.A. 91-3, S. 139, 168; P.A. 97-243, S. 41, 67.)
History: June Sp. Sess. P.A. 91-3, S. 139 effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; P.A. 97-243 clarified that the commissioner is to apply Secs. 2701 to 2704 of the Internal Revenue Code, effective
June 24, 1997, and applicable to calendar years commencing on or after January 1, 1997.
Sec. 12-644. Returns. (a) Any individual, whether resident or nonresident, liable
for a return under this chapter, who in the calendar year makes any transfer by gift not
excluded in this chapter shall make a return with respect to the gift tax imposed by this
chapter.
(b) If the donor dies before filing his return, the executor of his will or the administrator of his estate shall file the return. If the donor becomes legally incompetent before
filing his return, his guardian or conservator shall file the return.
(c) The return shall set forth:
(1) Each gift made during the calendar year which is to be included in computing
the taxable gifts.
(2) The deductions claimed and allowable under section 12-643.
(3) A description of the gift, and the donee's name, address and social security
account number.
(4) The fair market value of gifts not made in money.
(5) Such further information as the Commissioner of Revenue Services may find
necessary to administer properly the provisions of this chapter.
(June Sp. Sess. P.A. 91-3, S. 140, 168.)
History: June Sp. Sess. P.A. 91-3, S. 140 effective August 22, 1991, and applicable to gifts made on or after September
1, 1991.
Sec. 12-645. Date of filing of returns. Exception. Returns required under this
chapter shall be filed on or before the fifteenth day of April following the close of the
calendar year except where a gift is made during the calendar year in which the donor
dies, the return with respect to such donor shall be filed on or before the last date,
including extensions, for filing the gift tax return for federal gift tax purposes with
respect to such donor.
(June Sp. Sess. P.A. 91-3, S. 141, 168; P.A. 95-27, S. 2, 4.)
History: June Sp. Sess. P.A. 91-3, S. 141, effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; P.A. 95-27 added exception for gifts made in the calendar year in which the donor dies, effective May 8, 1995,
and applicable to gifts made on or after January 1, 1995.
Sec. 12-646. Appraisal of property by commissioner. Declaration by donor.
The Commissioner of Revenue Services may require the donor or the donee to show
the property subject to the tax, as provided in this chapter, to the commissioner upon
demand and may employ a suitable person to appraise the property. The donor shall
submit a declaration, prescribed as to form by the Commissioner of Revenue Services
and bearing notice to the effect that false statements made in such declaration are punishable, that the property shown by said donor on said donor's return to the commissioner
includes all of the property transferred by gift for the calendar year involved and not
excluded herein.
(June Sp. Sess. P.A. 91-3, S. 142, 168; P.A. 00-174, S. 66, 83.)
History: June Sp. Sess. P.A. 91-3, S. 142, effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; P.A. 00-174 deleted requirement for an affidavit for certain information required to be submitted, added provisions
re declaration and made technical changes for purposes of gender neutrality, effective July 1, 2000.
Sec. 12-646a. Value of farm transferred by gift. (a) In determining the tax due
under the provisions of this chapter, the value of any farm land, as defined in section
12-107c, transferred by a donor by gift to a donee who is a lineal descendant or spouse
thereof, shall be determined in accordance with the provisions of section 12-63.
(b) If, within ten years immediately following a transfer to a donee where, as provided in subsection (a) of this section, the value is determined in accordance with the
provisions of section 12-63, such farm land is transferred by the donee to a party other
than the donee's lineal descendant or the spouse thereof or is no longer classified as
farm land in accordance with section 12-107c, such donee or, if such land was transferred
to such donee's lineal descendant or the spouse thereof, such descendant or the spouse
thereof shall be liable for the difference between the tax that was due from the donor
under the provisions of subsection (a) of this section and the tax that would have been
due if such land had been valued based upon its fair market value, rather than at its value
as land classified as farm land pursuant to section 12-107c, at the time of such transfer
by such donor. The gift tax return of the donor shall include, in such manner as required
by the Commissioner of Revenue Services for purposes of this section, a declaration,
prescribed as to form by the Commissioner of Revenue Services and bearing notice to
the effect that false statements made in such declaration are punishable, as to the fair
market value of such farm land, based on its highest and best use value, as of the time
of such transfer by such donor. The tax imposed under this subsection shall be paid to
the commissioner within sixty days following the date of such transfer or change in
classification, and if not so paid shall bear interest at the rate of one per cent per month
or fraction thereof, commencing at the expiration of such sixty days, until paid. The
commissioner may, for cause shown, on written application of such donee or, if such land
was transferred to the donee's lineal descendant or the spouse thereof, such descendant or
the spouse thereof, filed with said commissioner at or before the expiration of such sixty
days, extend the time for payment of said tax or any part thereof.
(c) The tax imposed under subsection (b) of this section shall be a lien in favor of
the state of Connecticut upon such real property so valued as farm land from the date
on which the transfer described in subsection (a) of this section was made until, if there
has been no transfer or change in classification resulting in the imposition of tax under
subsection (b) of this section, the expiration of ten years immediately following such
transfer, or in the event of a transfer or change in classification resulting in the imposition
of tax under subsection (b) of this section, payment of the tax and interest, if any, imposed
under subsection (b) of this section is made; provided such lien shall not be valid against
any bona fide purchaser, as defined in subsection (a) of section 12-35b, or qualified
encumbrancer, as defined in subsection (b) of section 12-35b.
(May Sp. Sess. P.A. 94-4, S. 44, 85; P.A. 95-27, S. 3, 4; 95-160, S. 64, 69; P.A. 00-174, S. 67, 83.)
History: May Sp. Sess. P.A. 94-4, S. 44, effective June 9, 1994; P.A. 95-27 added ten-year limit to period during which
additional gift tax could be owed if farm land is sold or converted to nonfarm use, and Subsec. (c) regarding a lien in favor
of the state on land valued as farm land transferred under Subsec. (a), effective May 8, 1995, and applicable to gifts made
on or after July 1, 1995; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section;
P.A. 00-174 amended Subsec. (b) to delete requirement for a sworn statement and add requirement for a declaration of
certain information required to be submitted, effective July 1, 2000.
Sec. 12-647. Payment of tax. Penalty for late payment. Extensions. Changes
in federal gift tax. (a) The tax imposed under this chapter shall be due and payable by
the donor no later than April fifteenth following the close of the calendar year during
which the gift was made and shall be payable to the Commissioner of Revenue Services.
The return required under section 12-644 shall accompany such payment. Where a gift
is made during the calendar year in which the donor dies, the last date for paying the
tax required under this chapter shall be the last date, including extensions, for filing the
gift tax return for federal gift tax purposes with respect to such donor. If any person
fails to pay the amount of tax reported to be due on such return within the time specified
under the provisions of this section, there shall be imposed a penalty equal to ten per
cent of such amount due and unpaid or fifty dollars, whichever is greater. Such amount
shall bear interest at the rate of one per cent per month or fraction thereof, from the due
date of such return.
(b) The commissioner for good cause may extend the time for making any return
and paying any amount required to be paid under this chapter if a written request therefor
is filed with the commissioner together with a tentative return which must be accompanied by a payment of the tax, which shall be estimated in such tentative return, on or
before the last day for filing the return. Any person to whom an extension is granted
shall pay, in addition to the tax, interest at the rate of one per cent per month or fraction
thereof from the date on which the tax would have been due without the extension until
the date of payment.
(c) If the amount of a taxpayer's taxable gifts, for federal gift tax purposes, reported
on such taxpayer's federal gift tax return for any calendar year, is changed or corrected
by the United States Internal Revenue Service or other competent authority, the taxpayer
shall report such change or correction in federal taxable gifts within ninety days after
the final determination of such change or correction, and shall concede the accuracy of
such determination or state wherein it is erroneous. Any taxpayer filing an amended
federal gift tax return shall also file within ninety days thereafter an amended return
under this chapter and shall give such information as the commissioner may require.
The time for filing such report or amended return may be extended by the commissioner
upon due cause shown. Notwithstanding any limitation of time in this chapter, if, upon
examination, the commissioner finds that such taxpayer is liable for the payment of an
additional tax, he shall, within a reasonable time from the receipt of such report or
amended return, notify such taxpayer of the amount of such additional tax, together with
interest thereon computed at the rate of one per cent per month or fraction thereof from
the date when the original tax became due and payable. Within thirty days of the mailing
of such notice, the taxpayer shall pay the commissioner the amount of such additional
tax and interest. If, upon examination of such report or amended return and related
information, the commissioner finds that the taxpayer has overpaid the tax due the state,
the commissioner shall certify the amount of such overpayment to the Comptroller, and
such amount shall be paid to the taxpayer by the State Treasurer upon order of the
Comptroller.
(June Sp. Sess. P.A. 91-3, S. 143, 168; May Sp. Sess. P.A. 92-5, S. 34, 37; P.A. 94-5, S. 1, 2; P.A. 95-26, S. 35, 52.)
History: June Sp. Sess. P.A. 91-3, S. 143, effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; May Sp. Sess. P.A. 92-5 amended Subsec. (a) to add provisions regarding later payments and added Subsecs. (b)
and (c); P.A. 94-5 amended Subsec. (a) re date of filing gift tax return when donor dies in year in which gift is made,
effective April 7, 1994, and applicable to taxable years commencing or after January 1, 1994; P.A. 95-26 amended Subsecs.
(a), (b) and (c) to lower interest rate from one and one-fourth to one per cent, 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. 12-648. Credit against succession tax. A credit shall be allowed against the
tax imposed under chapter 216 in the amount of any tax imposed and paid under sections
12-640 to 12-649, inclusive, with respect to a gift includable in the gross taxable estate
of the donor under said chapter 216.
(June Sp. Sess. P.A. 91-3, S. 144, 168; May Sp. Sess. P.A. 92-5, S. 35, 37; P.A. 93-261, S. 1, 4.)
History: June Sp. Sess. P.A. 91-3, S. 144, effective August 22, 1991, and applicable to gifts made on or after September
1, 1991; May Sp. Sess. P.A. 92-5 made a technical change; P.A. 93-261 deleted existing section and established a credit
against the succession tax with respect to any tax imposed and paid under the gift tax, effective July 1, 1993, and applicable
to gifts made on or after July 1, 1993.
Sec. 12-649. Records. Penalties. Administration. Appeals. Collection. Liens.
The provisions of sections 12-548 to 12-554, inclusive, and section 12-555a shall apply
to the provisions of this section in the same manner and with the same force and effect
as if the language of said sections 12-548 to 12-554, inclusive, and section 12-555a had
been incorporated in full into this chapter and had expressly referred to the tax under
this chapter, except to the extent that any provision is inconsistent with a provision in
this chapter.
(June Sp. Sess. P.A. 91-3, S. 145, 168.)
History: June Sp. Sess. P.A. 91-3, S. 145, effective August 22, 1991, and applicable to gifts made on or after September
1, 1991.