Substitute House Bill No. 6860
          Substitute House Bill No. 6860

              PUBLIC ACT NO. 97-165


AN  ACT  CONCERNING  AN  ESTATE TAX ON NONRESIDENT
ESTATES AND A GENERATION-SKIPPING TRANSFER TAX  ON
RESIDENT  AND  NONRESIDENT  TRANSFERORS SUBJECT TO
THE FEDERAL GENERATION-SKIPPING TRANSFER TAX.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  12-391  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  A tax is imposed upon the transfer of the
estate of each person who at the time of death was
a  resident  of this state. [, the amount of which
shall be the amount by which  the  federal  credit
allowed for such taxes under the provisions of the
federal internal revenue code in force at the date
of  such  decedent's  death  exceeds the aggregate
amount  of  all   estate,   inheritance,   legacy,
transfer and succession taxes actually paid to the
several  states  and  territories  of  the  United
States,  including  this  state, in respect to any
property owned by such decedent or subject to such
taxes  as  a  part  of  or  in connection with his
estate.] THE AMOUNT OF THE TAX SHALL BE THE AMOUNT
OF   THE  FEDERAL  CREDIT  ALLOWABLE  FOR  ESTATE,
INHERITANCE, LEGACY AND SUCCESSION TAXES  PAID  TO
ANY  STATE  OR  THE DISTRICT OF COLUMBIA UNDER THE
PROVISIONS OF THE FEDERAL INTERNAL REVENUE CODE IN
FORCE  AT  THE  DATE  OF  SUCH DECEDENT'S DEATH IN
RESPECT TO ANY PROPERTY OWNED BY SUCH DECEDENT  OR
SUBJECT  TO SUCH TAXES AS PART OF OR IN CONNECTION
WITH THE ESTATE  OF  SUCH  DECEDENT.  IF  REAL  OR
TANGIBLE  PERSONAL  PROPERTY  OF  SUCH DECEDENT IS
LOCATED OUTSIDE OF THIS STATE AND  IS  SUBJECT  TO
ESTATE,  INHERITANCE,  LEGACY, OR SUCCESSION TAXES
BY ANY STATE OR STATES, OTHER THAN  THE  STATE  OF
CONNECTICUT,  OR  BY  THE DISTRICT OF COLUMBIA FOR
WHICH SUCH FEDERAL CREDIT IS ALLOWABLE, THE AMOUNT
OF  TAX DUE UNDER THIS SECTION SHALL BE REDUCED BY
THE LESSER OF: (1) THE AMOUNT OF  ANY  SUCH  TAXES
PAID  TO  SUCH  OTHER  STATE  OR  STATES  OR  SAID
DISTRICT AND  ALLOWED  AS  A  CREDIT  AGAINST  THE
FEDERAL  ESTATE  TAX; OR (2) AN AMOUNT COMPUTED BY
MULTIPLYING SUCH FEDERAL CREDIT BY A FRACTION, (A)
THE  NUMERATOR  OF WHICH IS THE VALUE OF THAT PART
OF THE DECEDENT'S GROSS  ESTATE  OVER  WHICH  SUCH
OTHER  STATE  OR  STATES  OR  SAID  DISTRICT  HAVE
JURISDICTION FOR ESTATE TAX PURPOSES TO  THE  SAME
EXTENT   TO   WHICH   THIS   STATE   WOULD  ASSERT
JURISDICTION FOR ESTATE TAX  PURPOSES  UNDER  THIS
CHAPTER  WITH  RESPECT  TO  THE  RESIDENTS OF SUCH
OTHER STATE OR STATES OR SAID  DISTRICT,  AND  (B)
THE  DENOMINATOR  OF  WHICH  IS  THE  VALUE OF THE
DECEDENT'S GROSS ESTATE. PROPERTY  OF  A  RESIDENT
ESTATE  OVER WHICH THIS STATE HAS JURISDICTION FOR
ESTATE  TAX  PURPOSES   INCLUDES   REAL   PROPERTY
SITUATED IN THIS STATE, TANGIBLE PERSONAL PROPERTY
HAVING  AN  ACTUAL  SITUS  IN  THIS   STATE,   AND
INTANGIBLE   PERSONAL   PROPERTY   OWNED   BY  THE
DECEDENT, REGARDLESS OF WHERE IT IS  LOCATED.  THE
AMOUNT  OF  ANY  ESTATE  TAX  IMPOSED  UNDER  THIS
SUBSECTION SHALL ALSO BE REDUCED,  BUT  NOT  BELOW
ZERO,  BY  THE  AMOUNT  OF ANY TAX THAT IS IMPOSED
UNDER CHAPTER 216 AND THAT  IS  ACTUALLY  PAID  TO
THIS STATE.
    (b)  A TAX IS IMPOSED UPON THE TRANSFER OF THE
ESTATE OF EACH PERSON WHO AT THE TIME OF DEATH WAS
A  NONRESIDENT  OF THIS STATE, THE AMOUNT OF WHICH
SHALL BE COMPUTED BY MULTIPLYING (1)  THE  FEDERAL
CREDIT  ALLOWABLE FOR ESTATE, INHERITANCE, LEGACY,
AND SUCCESSION TAXES PAID TO ANY STATE  OR  STATES
OR  THE  DISTRICT OF COLUMBIA UNDER THE PROVISIONS
OF THE FEDERAL INTERNAL REVENUE CODE IN  FORCE  AT
THE  DATE  OF  SUCH DECEDENT'S DEATH IN RESPECT TO
ANY PROPERTY OWNED BY SUCH DECEDENT OR SUBJECT  TO
SUCH  TAXES AS A PART OF OR IN CONNECTION WITH THE
ESTATE OF SUCH DECEDENT BY (2) A FRACTION, (A) THE
NUMERATOR  OF  WHICH  IS THE VALUE OF THAT PART OF
THE DECEDENT'S GROSS ESTATE OVER WHICH THIS  STATE
HAS  JURISDICTION  FOR ESTATE TAX PURPOSES AND (B)
THE DENOMINATOR OF  WHICH  IS  THE  VALUE  OF  THE
DECEDENT'S GROSS ESTATE. PROPERTY OF A NONRESIDENT
ESTATE OVER WHICH THIS STATE HAS JURISDICTION  FOR
ESTATE   TAX   PURPOSES   INCLUDES  REAL  PROPERTY
SITUATED  IN  THIS  STATE  AND  TANGIBLE  PERSONAL
PROPERTY HAVING AN ACTUAL SITUS IN THIS STATE. THE
AMOUNT  OF  ANY  ESTATE  TAX  IMPOSED  UNDER  THIS
SUBSECTION  SHALL  ALSO  BE REDUCED, BUT NOT BELOW
ZERO, BY THE AMOUNT OF ANY  TAX  THAT  IS  IMPOSED
UNDER  CHAPTER  216  AND  THAT IS ACTUALLY PAID TO
THIS STATE.
    (c)  FOR  PURPOSES  OF SUBSECTIONS (a) AND (b)
OF THIS SECTION, "GROSS ESTATE"  MEANS  THE  GROSS
ESTATE, FOR FEDERAL ESTATE TAX PURPOSES.
    (d)  (1)  FOR  THE  PURPOSES  OF THIS CHAPTER,
EACH DECEDENT SHALL BE PRESUMED  TO  HAVE  DIED  A
RESIDENT  OF THIS STATE. THE BURDEN OF PROOF IN AN
ESTATE TAX PROCEEDING SHALL BE UPON ANY DECEDENT'S
ESTATE   CLAIMING   EXEMPTION  BY  REASON  OF  THE
DECEDENT'S ALLEGED NONRESIDENCY.
    (2)  ANY  PERSON  REQUIRED  TO MAKE AND FILE A
TAX RETURN UNDER THIS CHAPTER, BELIEVING THAT  THE
DECEDENT  DIED  A  NONRESIDENT  OF THIS STATE, MAY
FILE A REQUEST FOR DETERMINATION  OF  DOMICILE  IN
WRITING WITH THE COMMISSIONER OF REVENUE SERVICES,
STATING  THE  SPECIFIC  GROUNDS  UPON  WHICH   THE
REQUEST  IS  FOUNDED  PROVIDED (A) SUCH PERSON HAS
FILED  SUCH  RETURN,  (B)  AT  LEAST  TWO  HUNDRED
SEVENTY  DAYS,  BUT  NO MORE THAN THREE YEARS, HAS
ELAPSED SINCE THE DUE DATE OF SUCH RETURN  OR,  IF
AN  APPLICATION FOR EXTENSION OF TIME TO FILE SUCH
RETURN HAS BEEN GRANTED, THE EXTENDED DUE DATE  OF
SUCH   RETURN,   (C)  SUCH  PERSON  HAS  NOT  BEEN
NOTIFIED, IN WRITING, BY SAID COMMISSIONER THAT  A
WRITTEN  AGREEMENT  OF  COMPROMISE WITH THE TAXING
AUTHORITIES OF ANOTHER JURISDICTION, UNDER SECTION
5  OF  THIS  ACT, IS BEING NEGOTIATED, AND (D) THE
COMMISSIONER HAS NOT PREVIOUSLY DETERMINED WHETHER
THE  DECEDENT  DIED  A RESIDENT OF THIS STATE. NOT
LATER  THAN  ONE  HUNDRED  EIGHTY  DAYS  FOLLOWING
RECEIPT  OF  SUCH  REQUEST  FOR DETERMINATION, THE
COMMISSIONER SHALL DETERMINE WHETHER SUCH DECEDENT
DIED A RESIDENT OR A NONRESIDENT OF THIS STATE. IF
THE COMMISSIONER  COMMENCES  NEGOTIATIONS  OVER  A
WRITTEN  AGREEMENT  OF  COMPROMISE WITH THE TAXING
AUTHORITIES  OF  ANOTHER  JURISDICTION   AFTER   A
REQUEST  FOR  DETERMINATION  OF DOMICILE IS FILED,
THE ONE HUNDRED EIGHTY-DAY PERIOD SHALL BE  TOLLED
FOR  THE  DURATION  OF  SUCH  NEGOTIATIONS.  WHEN,
BEFORE  THE  EXPIRATION  OF   SUCH   ONE   HUNDRED
EIGHTY-DAY  PERIOD,  BOTH THE COMMISSIONER AND THE
PERSON REQUIRED TO MAKE  AND  FILE  A  TAX  RETURN
UNDER  THIS  CHAPTER  HAVE CONSENTED IN WRITING TO
THE MAKING OF SUCH DETERMINATION AFTER SUCH  TIME,
THE DETERMINATION MAY BE MADE AT ANY TIME PRIOR TO
THE EXPIRATION OF  THE  PERIOD  AGREED  UPON.  THE
PERIOD   SO   AGREED   UPON  MAY  BE  EXTENDED  BY
SUBSEQUENT AGREEMENTS IN WRITING MADE  BEFORE  THE
EXPIRATION  OF  THE PERIOD PREVIOUSLY AGREED UPON.
THE COMMISSIONER SHALL MAIL NOTICE OF HIS PROPOSED
DETERMINATION  TO  THE PERSON REQUIRED TO MAKE AND
FILE A TAX RETURN UNDER THIS CHAPTER. SUCH  NOTICE
SHALL   SET   FORTH   BRIEFLY  THE  COMMISSIONER'S
FINDINGS OF FACT AND THE BASIS  OF  SUCH  PROPOSED
DETERMINATION.  SIXTY DAYS AFTER THE DATE ON WHICH
IT IS MAILED, A NOTICE OF  PROPOSED  DETERMINATION
SHALL  CONSTITUTE A FINAL DETERMINATION UNLESS THE
PERSON REQUIRED TO MAKE  AND  FILE  A  TAX  RETURN
UNDER  THIS  CHAPTER  HAS  FILED,  AS  PROVIDED IN
SUBDIVISION (3)  OF  THIS  SUBSECTION,  A  WRITTEN
PROTEST WITH THE COMMISSIONER OF REVENUE SERVICES.
    (3)  ON  OR  BEFORE  THE  SIXTIETH  DAY  AFTER
MAILING OF THE PROPOSED DETERMINATION, THE  PERSON
REQUIRED  TO MAKE AND FILE A TAX RETURN UNDER THIS
CHAPTER MAY FILE WITH THE COMMISSIONER  A  WRITTEN
PROTEST  AGAINST  THE  PROPOSED  DETERMINATION  IN
WHICH SUCH PERSON SHALL SET FORTH THE  GROUNDS  ON
WHICH  THE  PROTEST IS BASED. IF SUCH A PROTEST IS
FILED,  THE  COMMISSIONER  SHALL  RECONSIDER   THE
PROPOSED DETERMINATION AND, IF THE PERSON REQUIRED
TO MAKE AND FILE A TAX RETURN UNDER  THIS  CHAPTER
HAS SO REQUESTED, MAY GRANT OR DENY SUCH PERSON OR
THE AUTHORIZED REPRESENTATIVES OF SUCH  PERSON  AN
ORAL HEARING.
    (4)     NOTICE     OF    THE    COMMISSIONER'S
DETERMINATION  SHALL  BE  MAILED  TO  THE   PERSON
REQUIRED  TO MAKE AND FILE A TAX RETURN UNDER THIS
CHAPTER AND SUCH NOTICE SHALL  SET  FORTH  BRIEFLY
THE  COMMISSIONER'S FINDINGS OF FACT AND THE BASIS
OF DECISION IN EACH CASE DECIDED ADVERSELY TO SUCH
PERSON.
    (5)  THE  ACTION  OF  THE  COMMISSIONER  ON  A
WRITTEN PROTEST SHALL BE FINAL UPON THE EXPIRATION
OF  ONE  MONTH  FROM  THE  DATE  ON WHICH HE MAILS
NOTICE OF HIS ACTION TO  THE  PERSON  REQUIRED  TO
MAKE  AND  FILE  A  TAX  RETURN UNDER THIS CHAPTER
UNLESS WITHIN SUCH PERIOD SUCH PERSON SEEKS REVIEW
OF  THE  COMMISSIONER'S  DETERMINATION PURSUANT TO
SUBSECTION (b) OF SECTION 12-395,  AS  AMENDED  BY
SECTION 3 OF THIS ACT.
    (6)   NOTHING  IN  THIS  SUBSECTION  SHALL  BE
CONSTRUED TO RELIEVE ANY PERSON FILING  A  REQUEST
FOR DETERMINATION OF DOMICILE OF THE OBLIGATION TO
PAY THE CORRECT AMOUNT OF TAX ON OR BEFORE THE DUE
DATE OF THE TAX.
    Sec.   2.   Section   12-392  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  (1) The tax imposed by this chapter shall
become due at the date of the taxable transfer and
shall  become  payable, AND SHALL BE PAID, WITHOUT
ASSESSMENT, NOTICE OR DEMAND, TO THE  COMMISSIONER
OF  REVENUE  SERVICES  at  the  expiration of nine
months from the  date  of  death,  and  executors,
administrators,    trustees,   grantees,   donees,
beneficiaries and surviving joint owners shall  be
liable  for  the tax [until it is paid. If the tax
is not paid within such nine months,  interest  at
the  rate  of  one  per cent per month or fraction
thereof shall be collected from the time the  same
became  payable]  AND  FOR ANY INTEREST OR PENALTY
THEREON UNTIL IT IS PAID, EXCEPT THAT NO EXECUTOR,
ADMINISTRATOR,     TRUSTEE,     GRANTEE,    DONEE,
BENEFICIARY OR  SURVIVING  JOINT  OWNER  SHALL  BE
LIABLE  FOR  A  GREATER  SUM THAN THE VALUE OF THE
PROPERTY ACTUALLY RECEIVED BY HIM OR HER.  IF  THE
AMOUNT  OF TAX REPORTED TO BE DUE ON THE RETURN IS
NOT PAID WITHIN SUCH NINE MONTHS, THERE  SHALL  BE
IMPOSED  A  PENALTY  EQUAL TO TEN PER CENT OF SUCH
AMOUNT DUE AND  UNPAID.  SUCH  AMOUNT  SHALL  BEAR
INTEREST  AT THE RATE OF ONE PER CENT PER MONTH OR
FRACTION THEREOF, FROM THE DUE DATE  OF  SUCH  TAX
UNTIL   THE   DATE  OF  PAYMENT.  SUBJECT  TO  THE
PROVISIONS OF SECTION 12-3a, THE COMMISSIONER  MAY
WAIVE  ALL OR PART OF THE PENALTIES PROVIDED UNDER
THIS CHAPTER WHEN IT IS PROVEN TO HIS SATISFACTION
THAT  THE  FAILURE  TO  PAY  ANY  TAX  WAS  DUE TO
REASONABLE CAUSE AND WAS NOT INTENTIONAL OR DUE TO
NEGLECT.
    (2)  The Commissioner of Revenue Services may,
for REASONABLE cause shown, extend  the  time  for
payment. [with or without interest for such period
as the circumstances  require.]  THE  COMMISSIONER
MAY  REQUIRE  THE FILING OF A TENTATIVE RETURN AND
THE PAYMENT OF THE TAX REPORTED TO BE DUE  THEREON
IN  CONNECTION WITH SUCH EXTENSION. ANY ADDITIONAL
TAX WHICH MAY BE FOUND TO BE DUE ON THE FILING  OF
A  RETURN  AS ALLOWED BY SUCH EXTENSION SHALL BEAR
INTEREST AT THE RATE OF ONE PER CENT PER MONTH  OR
FRACTION  THEREOF  FROM  THE  ORIGINAL DUE DATE OF
SUCH TAX TO THE DATE OF ACTUAL PAYMENT.
    (3)  Whenever  there  is an overpayment of the
tax imposed by this chapter, 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  nine months
after the death  of  the  transferor  or  date  of
payment, whichever is later.
    (b)  (1) THE TAX IMPOSED BY THIS CHAPTER SHALL
BE REPORTED ON A TAX RETURN WHICH SHALL  BE  FILED
ON  OR  BEFORE  THE DATE FIXED FOR PAYING THE TAX,
DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME
FOR  PAYING THE TAX. THE COMMISSIONER SHALL DESIGN
A FORM OF RETURN AND  FORMS  FOR  SUCH  ADDITIONAL
STATEMENTS  OR  SCHEDULES  AS HE MAY REQUIRE TO BE
FILED. SUCH FORMS SHALL PROVIDE  FOR  THE  SETTING
FORTH  OF  SUCH  FACTS  AS  THE COMMISSIONER DEEMS
NECESSARY  FOR  THE  PROPER  ENFORCEMENT  OF  THIS
CHAPTER.  HE SHALL CAUSE A SUPPLY OF SUCH FORMS TO
BE PRINTED AND  SHALL  FURNISH  APPROPRIATE  BLANK
FORMS   TO   EACH  TAXPAYER  UPON  APPLICATION  OR
OTHERWISE  AS  HE  DEEMS  NECESSARY.  FAILURE   TO
RECEIVE  A  FORM SHALL NOT RELIEVE ANY PERSON FROM
THE  OBLIGATION  TO  FILE  A  RETURN   UNDER   THE
PROVISIONS  OF  THIS CHAPTER. IN ANY CASE IN WHICH
THE  COMMISSIONER  BELIEVES  THAT  IT   WOULD   BE
ADVANTAGEOUS  TO  HIM IN THE ADMINISTRATION OF THE
TAX IMPOSED BY THIS CHAPTER, THE COMMISSIONER  MAY
REQUIRE THAT A TRUE COPY OF THE FEDERAL ESTATE TAX
RETURN MADE TO THE  INTERNAL  REVENUE  SERVICE  BE
PROVIDED.
    (2)   ANY   TAX   RETURN  OR  OTHER  DOCUMENT,
INCLUDING ANY  AMENDED  TAX  RETURN  OR  AFFIDAVIT
UNDER  SECTION  12-398, AS AMENDED BY SECTION 4 OF
THIS ACT, THAT IS REQUIRED TO BE FILED UNDER  THIS
CHAPTER  SHALL  BE  FILED, AND SHALL BE TREATED AS
FILED, ONLY IF FILED WITH BOTH THE COMMISSIONER OF
REVENUE  SERVICES AND THE COURT OF PROBATE FOR THE
DISTRICT WITHIN WHICH THE DECEDENT RESIDED AT  THE
DATE  OF  HIS  DEATH  OR,  IF  THE DECEDENT DIED A
NONRESIDENT OF THIS STATE, IN THE COURT OF PROBATE
FOR  THE  DISTRICT  WITHIN  WHICH  REAL  ESTATE OR
TANGIBLE PERSONAL  PROPERTY  OF  THE  DECEDENT  IS
SITUATED. THE RETURN SHALL CONTAIN A STATEMENT, TO
BE SIGNED UNDER PENALTY OF FALSE STATEMENT BY  THE
PERSON WHO IS REQUIRED TO MAKE AND FILE THE RETURN
UNDER THIS CHAPTER, THAT THE RETURN HAS BEEN FILED
WITH BOTH THE COMMISSIONER OF REVENUE SERVICES AND
SAID COURT OF PROBATE.
    (3)  A  TAX RETURN SHALL BE FILED, IN THE CASE
OF EVERY DECEDENT WHO AT THE TIME OF DEATH WAS (A)
A  RESIDENT  OF THIS STATE OR (B) A NONRESIDENT OF
THIS STATE WHOSE GROSS ESTATE  INCLUDES  ANY  REAL
PROPERTY   SITUATED  IN  THIS  STATE  OR  TANGIBLE
PERSONAL PROPERTY HAVING AN ACTUAL SITUS  IN  THIS
STATE, WHENEVER THE PERSONAL REPRESENTATIVE OF THE
ESTATE IS REQUIRED  BY  THE  LAWS  OF  THE  UNITED
STATES  TO  FILE  A FEDERAL ESTATE TAX RETURN. THE
DULY AUTHORIZED EXECUTOR  OR  ADMINISTRATOR  SHALL
FILE  THE  RETURN.  IF  THERE  IS  MORE  THAN  ONE
EXECUTOR OR ADMINISTRATOR,  THE  RETURN  SHALL  BE
MADE  JOINTLY  BY  ALL. IF THERE IS NO EXECUTOR OR
ADMINISTRATOR  APPOINTED,  QUALIFIED  AND  ACTING,
EACH  PERSON  IN ACTUAL OR CONSTRUCTIVE POSSESSION
OF ANY PROPERTY OF THE DECEDENT IS CONSTITUTED  AN
EXECUTOR  FOR  PURPOSES  OF THE TAX AND SHALL MAKE
AND FILE A RETURN. IF IN ANY CASE THE EXECUTOR  IS
UNABLE TO MAKE A COMPLETE RETURN AS TO ANY PART OF
THE GROSS ESTATE, THE EXECUTOR SHALL  PROVIDE  ALL
THE  INFORMATION  AVAILABLE TO HIM WITH RESPECT TO
SUCH PROPERTY, INCLUDING A FULL  DESCRIPTION,  AND
THE  NAME  OF  EVERY  PERSON  HOLDING  A  LEGAL OR
BENEFICIAL  INTEREST  IN  THE  PROPERTY.  IF   THE
EXECUTOR  IS  UNABLE  TO  MAKE  A RETURN AS TO ANY
PROPERTY, EACH PERSON HOLDING A LEGAL OR EQUITABLE
INTEREST  IN SUCH PROPERTY SHALL, UPON NOTICE FROM
THE COMMISSIONER, MAKE A RETURN AS TO THAT PART OF
THE GROSS ESTATE.
    (4)  THE COMMISSIONER OF REVENUE SERVICES MAY,
FOR REASONABLE CAUSE SHOWN, EXTEND  THE  TIME  FOR
FILING THE RETURN.
    (5)  IF  ANY  PERSON REQUIRED TO MAKE AND FILE
THE TAX RETURN UNDER THIS CHAPTER  FAILS  TO  FILE
THE   RETURN   WITHIN  THE  TIME  PRESCRIBED,  THE
COMMISSIONER MAY ASSESS AND COMPUTE THE  TAX  UPON
THE   BEST  INFORMATION  OBTAINABLE.  TO  THE  TAX
IMPOSED UPON THE BASIS OF SUCH RETURN, THERE SHALL
BE  ADDED  AN AMOUNT EQUAL TO TEN PER CENT OF SUCH
TAX OR FIFTY DOLLARS, WHICHEVER  IS  GREATER.  THE
TAX  SHALL  BEAR  INTEREST  AT THE RATE OF ONE PER
CENT PER MONTH OR FRACTION THEREOF, FROM  THE  DUE
DATE OF SUCH TAX UNTIL THE DATE OF PAYMENT.
    (6)  THE  COMMISSIONER SHALL PROVIDE NOTICE OF
ANY (A) DEFICIENCY ASSESSMENT WITH RESPECT TO  THE
PAYMENT   OF  ANY  TAX  UNDER  THIS  CHAPTER,  (B)
ASSESSMENT WITH RESPECT TO ANY FAILURE TO MAKE AND
FILE  A  RETURN  UNDER  THIS  CHAPTER  BY A PERSON
REQUIRED TO FILE, AND  (C)  TAX  RETURN  OR  OTHER
DOCUMENT,  INCLUDING  ANY  AMENDED  TAX  RETURN OR
AFFIDAVIT UNDER  SECTION  12-398,  AS  AMENDED  BY
SECTION  4  OF  THIS  ACT,  THAT IS REQUIRED TO BE
FILED UNDER THIS CHAPTER TO THE COURT  OF  PROBATE
FOR  THE  DISTRICT  WITHIN  WHICH THE COMMISSIONER
CONTENDS THAT THE DECEDENT RESIDED AT THE DATE  OF
HIS  DEATH  OR, IF THE DECEDENT DIED A NONRESIDENT
OF THIS STATE, TO THE COURT  OF  PROBATE  FOR  THE
DISTRICT  WITHIN  WHICH  THE COMMISSIONER CONTENDS
THAT REAL ESTATE OR TANGIBLE PERSONAL PROPERTY  OF
THE DECEDENT IS SITUATED.
    (c)  NO  PERSON  SHALL BE SUBJECT TO A PENALTY
UNDER BOTH SUBSECTIONS (a) AND (b) OF THIS SECTION
IN RELATION TO THE SAME TAX PERIOD.
    Sec.   3.   Section   12-395  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    [All  necessary  administrative  provisions of
the succession tax law of this state shall also be
effective  and  applicable  to  all  corresponding
matters in the administration of the  estate  tax,
except  that  no lien shall attach to any property
of any estate on account of such estate  tax.  The
Commissioner  of  Revenue Services may require all
persons or corporations liable for the payment  of
such estate tax to file returns in such form as he
prescribes.  In  case  of  failure  to  file  such
return, the Commissioner of Revenue Services shall
determine and assess the tax upon the basis of the
best  information  available.  The Commissioner of
Revenue Services  may  compel  the  attendance  of
witnesses   and  the  production  of  evidence  by
subpoena, administer oaths and take  testimony  in
relation   to   any  matter  under  this  chapter.
Witnesses shall receive the same fees as are  paid
to  witnesses  subpoenaed  to  attend in courts of
record.]
    (a)  (1)  THE PROVISIONS OF SECTION 12-548 AND
SECTIONS 12-550 TO 12-553, INCLUSIVE, SHALL  APPLY
TO  THE  PROVISIONS  OF SECTIONS 12-391 TO 12-399,
INCLUSIVE, AS AMENDED BY THIS  ACT,  IN  THE  SAME
MANNER  AND  WITH  THE SAME FORCE AND EFFECT AS IF
THE LANGUAGE OF SAID SECTION 12-548  AND  SECTIONS
12-550 TO 12-553, INCLUSIVE, HAD BEEN INCORPORATED
IN FULL  INTO  SAID  SECTIONS  AND  HAD  EXPRESSLY
REFERRED  TO  THE TAX IMPOSED UNDER SAID SECTIONS,
EXCEPT TO THE EXTENT THAT ANY  SUCH  PROVISION  IS
INCONSISTENT WITH A PROVISION OF SAID SECTIONS.
    (2)  A  FINDING  OF  DOMICILE  BY  A  COURT OF
PROBATE  IN  ACCORDANCE  WITH  SUBSECTION  (b)  OF
SECTION  45a-309,  AS AMENDED BY SECTION 8 OF THIS
ACT,  SHALL  NOT  AFFECT  THE  DETERMINATION,  FOR
PURPOSES  OF  CHAPTER 217, AS AMENDED BY THIS ACT,
OF WHETHER A DECEDENT  DIED  A  RESIDENT  OF  THIS
STATE  OR  OF  THE  AMOUNT  OF ESTATE TAX DUE THIS
STATE, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF
SUBSECTION (b) OF THIS SECTION.
    (b)   ANY   PERSON  AGGRIEVED  BY  ANY  ORDER,
DECISION, DETERMINATION  OR  DISALLOWANCE  OF  THE
COMMISSIONER   OF   REVENUE   SERVICES  UNDER  THE
PROVISIONS OF THIS CHAPTER MAY, NOT LATER THAN ONE
MONTH  AFTER  SERVICE UPON THE PERSON OF NOTICE OF
SUCH    ORDER,    DECISION,    DETERMINATION    OR
DISALLOWANCE,  MAKE  A  WRITTEN  APPLICATION FOR A
HEARING TO THE COURT OF PROBATE FOR  THE  DISTRICT
WITHIN  WHICH  THE DECEDENT RESIDED AT THE DATE OF
HIS  DEATH,  OR  WITHIN  WHICH  THE   COMMISSIONER
CONTENDS  THAT THE DECEDENT RESIDED AT THE DATE OF
HIS DEATH OR, IF THE DECEDENT DIED  A  NONRESIDENT
OF  THIS  STATE,  IN  THE COURT OF PROBATE FOR THE
DISTRICT WITHIN  WHICH  REAL  ESTATE  OR  TANGIBLE
PERSONAL  PROPERTY OF THE DECEDENT IS SITUATED, OR
WITHIN WHICH THE COMMISSIONER CONTENDS  THAT  REAL
ESTATE   OR  TANGIBLE  PERSONAL  PROPERTY  OF  THE
DECEDENT IS SITUATED. SUCH APPLICATION  SHALL  SET
FORTH  IN  DETAIL  THE  OBJECTION  TO  THE  ORDER,
DECISION, DETERMINATION OR  DISALLOWANCE  OF  SAID
COMMISSIONER AND A COPY OF SAME SHALL BE MAILED TO
SAID COMMISSIONER AT THE TIME OF FILING. 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 RECEIPT THEREOF AND
SHALL CAUSE A COPY OF THE ORDER OF HEARING  TO  BE
SENT  TO  SAID  COMMISSIONER  AND  TO  THE  PERSON
AGGRIEVED BY SAID ORDER,  DECISION,  DETERMINATION
OR  DISALLOWANCE AT LEAST TEN DAYS BEFORE THE TIME
OF SUCH HEARING. THE COMMISSIONER  OR  ANY  PERSON
INTERESTED  MAY  APPEAR  BEFORE  THE COURT AT SUCH
HEARING AND BE HEARD ON ANY MATTER INVOLVED IN THE
DETERMINATION  OF  THE  TAX.  AT SUCH HEARING, 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 COURT OF PROBATE SHALL
BE FORWARDED BY THE JUDGE OR CLERK OF  SUCH  COURT
TO  THE  COMMISSIONER  AND TO THE PERSON AGGRIEVED
BECAUSE OF SUCH ORDER, DECISION, DETERMINATION  OR
DISALLOWANCE     OF    THE    COMMISSIONER.    THE
DETERMINATION OF THE TAX BY  THE  COMMISSIONER  OF
REVENUE  SERVICES  SHALL  BE  CONCLUSIVE  UPON THE
STATE AND  ANY  PERSON  AGGRIEVED  BY  ANY  ORDER,
DECISION,  DETERMINATION  OR  DISALLOWANCE  OF THE
COMMISSIONER UNLESS A HEARING IS HELD AS  PROVIDED
IN  THIS  SUBSECTION,  IN WHICH CASE THE DECREE OF
THE COURT OF PROBATE SHALL BE CONCLUSIVE UPON  THE
STATE  AND  ANY  PERSON  AGGRIEVED  BY SUCH ORDER,
DECISION, DETERMINATION  OR  DISALLOWANCE  OF  THE
COMMISSIONER UNLESS AN APPEAL IS TAKEN AS PROVIDED
FOR APPEALS FROM OTHER DECREES AND ORDERS OF  SUCH
COURT.
    Sec.   4.   Section   12-398  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    [If  the  amount  of  federal  estate  tax  is
increased or  decreased  as  affecting  an  estate
taxable hereunder subsequent to the payment of the
tax on account of such estate imposed  by  section
12-391, the tax imposed upon such estate under the
provisions  of  this  chapter  shall  be   changed
accordingly.  Any additional tax shall be assessed
by the Commissioner of Revenue Services  and  paid
within  sixty  days  after  the date of the notice
from him of the amount thereof, subject to  appeal
as  provided  in  section  12-394.  Any excess tax
received by the state shall  be  refunded  by  the
Treasurer upon the order of the Comptroller within
sixty days after the amount has been certified  by
the  Commissioner  of  Revenue  Services, with the
written approval of the Attorney General.]
    (a)  IF  THE  AMOUNT  OF  FEDERAL  ESTATE  TAX
REPORTED ON AN ESTATE'S FEDERAL ESTATE TAX  RETURN
IS  CHANGED  OR  CORRECTED  BY  THE  UNITED STATES
INTERNAL REVENUE SERVICE, THE PERSON  REQUIRED  TO
MAKE  AND  FILE  THE  ESTATE TAX RETURN UNDER THIS
CHAPTER SHALL, WITHIN NINETY DAYS AFTER THE  FINAL
DETERMINATION  OF  SUCH CHANGE OR CORRECTION OR AS
OTHERWISE REQUIRED BY THE COMMISSIONER, SUBMIT  TO
THE  COMMISSIONER  AN  AFFIDAVIT  DISCLOSING  SUCH
CHANGE  OR  CORRECTION,  AND  SHALL  CONCEDE   THE
ACCURACY OF SUCH DETERMINATION OR STATE WHEREIN IT
IS ERRONEOUS, AND THEREAFTER PROMPTLY  FURNISH  TO
THE   COMMISSIONER   ANY  INFORMATION,  SCHEDULES,
RECORDS, DOCUMENTS  OR  PAPERS  RELATING  TO  SUCH
CHANGE  OR CORRECTION AS HE REQUIRES. THE TIME FOR
FILING SUCH  AFFIDAVIT  MAY  BE  EXTENDED  BY  THE
COMMISSIONER   UPON  DUE  CAUSE  SHOWN.  IF,  UPON
EXAMINATION,  THE  COMMISSIONER  FINDS  THAT   THE
ESTATE  IS LIABLE FOR THE PAYMENT OF AN ADDITIONAL
TAX, HE SHALL, WITHIN A REASONABLE TIME  FROM  THE
RECEIPT  OF  SUCH  AFFIDAVIT, NOTIFY THE ESTATE 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  ESTATE SHALL PAY TO THE COMMISSIONER, IN CASH
OR BY CHECK, DRAFT OR MONEY ORDER,  DRAWN  TO  THE
ORDER OF THE COMMISSIONER OF REVENUE SERVICES, THE
AMOUNT OF SUCH ADDITIONAL TAX  AND  INTEREST.  IF,
UPON  EXAMINATION  OF  SUCH  AFFIDAVIT AND RELATED
INFORMATION,  THE  COMMISSIONER  FINDS  THAT   THE
ESTATE  HAS OVERPAID THE TAX DUE THE STATE AND HAS
NOT RECEIVED FROM OR BEEN ALLOWED  BY  THE  UNITED
STATES GOVERNMENT, OR ANY AGENCY THEREOF, A CREDIT
OR A BENEFIT, AS A DEDUCTION OR OTHERWISE, FOR  OR
BY REASON OF SUCH OVERPAYMENT, THE ESTATE SHALL BE
PAID BY THE STATE TREASURER,  UPON  ORDER  OF  THE
COMPTROLLER, THE AMOUNT OF SUCH OVERPAYMENT.
    (b)  IF A PERSON REQUIRED TO MAKE AND FILE THE
ESTATE TAX RETURN  UNDER  THIS  CHAPTER  FILES  AN
AMENDED  FEDERAL ESTATE TAX RETURN WITH THE UNITED
STATES INTERNAL REVENUE SERVICE, SUCH PERSON SHALL
ALSO  FILE,  NOT  LATER THAN NINETY DAYS FOLLOWING
SUCH AMENDED FEDERAL ESTATE TAX FILING, AN AMENDED
RETURN  UNDER  THIS  CHAPTER  AND  SHALL GIVE SUCH
OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
THE   COMMISSIONER   MAY   ADOPT   REGULATIONS  IN
ACCORDANCE WITH CHAPTER 54, PRESCRIBING EXCEPTIONS
TO  THE  REQUIREMENTS  OF THIS SECTION AS HE DEEMS
APPROPRIATE. IF, UPON EXAMINATION OF SUCH  AMENDED
RETURN,  THE COMMISSIONER FINDS THAT THE ESTATE IS
LIABLE FOR THE PAYMENT OF AN  ADDITIONAL  TAX,  HE
SHALL,  WITHIN  A REASONABLE TIME FROM THE RECEIPT
OF SUCH AMENDED RETURN, NOTIFY THE ESTATE  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.  NOT
LATER  THAN  THIRTY  DAYS FOLLOWING THE MAILING OF
SUCH  NOTICE,  THE  ESTATE  SHALL   PAY   TO   THE
COMMISSIONER,  IN CASH OR BY CHECK, DRAFT OR MONEY
ORDER, DRAWN TO THE ORDER OF THE  COMMISSIONER  OF
REVENUE  SERVICES,  THE  AMOUNT OF SUCH ADDITIONAL
TAX AND INTEREST. IF,  UPON  EXAMINATION  OF  SUCH
AMENDED  RETURN,  THE  COMMISSIONER FINDS THAT THE
ESTATE HAS OVERPAID THE TAX DUE THE STATE AND  HAS
NOT  RECEIVED  FROM  OR BEEN ALLOWED BY THE UNITED
STATES GOVERNMENT, OR ANY AGENCY THEREOF, A CREDIT
OR  A BENEFIT, AS A DEDUCTION OR OTHERWISE, FOR OR
BY REASON OF SUCH OVERPAYMENT, THE ESTATE SHALL BE
PAID  BY  THE  STATE  TREASURER, UPON ORDER OF THE
STATE COMPTROLLER, THE AMOUNT OF SUCH OVERPAYMENT.
    (c)  (1)  NOTWITHSTANDING  THE  PROVISIONS  OF
SECTIONS 1-15, 1-18a, 1-19  TO  1-19b,  INCLUSIVE,
AND  1-21  TO 1-21k, INCLUSIVE, A COURT OF PROBATE
SHALL NOT DISCLOSE  TO  ANY  PERSON  OR  STATE  OR
MUNICIPAL BOARD, COMMISSION, DEPARTMENT OR AGENCY,
ESTATE  TAX  RETURNS   AND   ESTATE   TAX   RETURN
INFORMATION  THAT ARE PROVIDED TO SUCH COURT UNDER
THIS CHAPTER, AS AMENDED BY THIS ACT,  EXCEPT  THE
PROBATE  COURT  SHALL, UPON REQUEST, DISCLOSE SUCH
RETURNS AND  RETURN  INFORMATION  TO  THE  PROBATE
COURT  ADMINISTRATOR  AND  TO  THE COMMISSIONER OF
REVENUE SERVICES, AND MAY DISCLOSE SUCH  A  RETURN
OR    RETURN    INFORMATION    TO   AN   EXECUTOR,
ADMINISTRATOR,    TRUSTEE,     GRANTEE,     DONEE,
BENEFICIARY,   SURVIVING   JOINT  OWNER  OR  OTHER
INTERESTED   PARTY,   WHEN   ANY    SUCH    PERSON
ESTABLISHES,  TO  THE  SATISFACTION OF SUCH COURT,
THAT HE OR SHE HAS A MATERIAL INTEREST WHICH  WILL
BE  AFFECTED  BY  INFORMATION  CONTAINED  IN  SUCH
RETURN.
    (2)    NOTWITHSTANDING   THE   PROVISIONS   OF
SECTIONS 1-15, 1-18a, 1-19  TO  1-19b,  INCLUSIVE,
AND  1-21  TO  1-21k, INCLUSIVE, THE PROBATE COURT
ADMINISTRATOR SHALL NOT DISCLOSE TO ANY PERSON  OR
STATE  OR  MUNICIPAL BOARD, COMMISSION, DEPARTMENT
OR AGENCY,  ESTATE  TAX  RETURNS  AND  ESTATE  TAX
RETURN  INFORMATION  THAT  ARE  PROVIDED  TO  SUCH
ADMINISTRATOR,  EXCEPT  THAT  THE  PROBATE   COURT
ADMINISTRATOR  SHALL,  UPON REQUEST, DISCLOSE SUCH
RETURNS AND RETURN INFORMATION TO THE COMMISSIONER
OF  REVENUE  SERVICES  AND  A  RETURN  AND  RETURN
INFORMATION CONCERNING A DECEDENT TO THE COURT  OF
PROBATE FOR THE DISTRICT WITHIN WHICH THE DECEDENT
RESIDED AT THE  DATE  OF  HIS  DEATH  OR,  IF  THE
DECEDENT  DIED A NONRESIDENT OF THIS STATE, TO THE
COURT OF PROBATE FOR  THE  DISTRICT  WITHIN  WHICH
REAL  ESTATE  OR TANGIBLE PERSONAL PROPERTY OF THE
DECEDENT IS SITUATED,  AND  MAY  DISCLOSE  SUCH  A
RETURN  OR  RETURN  INFORMATION  TO  AN  EXECUTOR,
ADMINISTRATOR,    TRUSTEE,     GRANTEE,     DONEE,
BENEFICIARY,   SURVIVING   JOINT  OWNER  OR  OTHER
INTERESTED   PARTY,   WHEN   ANY    SUCH    PERSON
ESTABLISHES,   TO   THE   SATISFACTION   OF   SUCH
ADMINISTRATOR, THAT HE  HAS  A  MATERIAL  INTEREST
WHICH WILL BE AFFECTED BY INFORMATION CONTAINED IN
SUCH RETURN.
    (d)  THE  TAX IMPOSED UNDER THIS CHAPTER SHALL
BE A LIEN IN FAVOR OF  THE  STATE  OF  CONNECTICUT
UPON THE REAL PROPERTY SO TRANSFERRED FROM THE DUE
DATE UNTIL PAID, WITH THE INTEREST AND COSTS  THAT
MAY  ACCRUE  IN ADDITION THERETO, EXCEPT THAT SUCH
LIEN SHALL NOT BE VALID  AS  AGAINST  ANY  LIENOR,
MORTGAGEE,   JUDGMENT   CREDITOR   OR   BONA  FIDE
PURCHASER 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 OF TAX THEREON AS THE  COMMISSIONER
MAY  SPECIFY.  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.
    (e)   ANY   PERSON  SHALL  BE  ENTITLED  TO  A
CERTIFICATE OF RELEASE OF LIEN WITH RESPECT TO THE
INTEREST OF THE DECEDENT IN SUCH REAL PROPERTY, IF
EITHER THE  COURT  OF  PROBATE  FOR  THE  DISTRICT
WITHIN  WHICH  THE DECEDENT RESIDED AT THE DATE OF
HIS DEATH OR, IF THE DECEDENT DIED  A  NONRESIDENT
OF  THIS STATE, FOR THE DISTRICT WITHIN WHICH REAL
ESTATE  OR  TANGIBLE  PERSONAL  PROPERTY  OF   THE
DECEDENT  IS  SITUATED,  OR  THE  COMMISSIONER  OF
REVENUE SERVICES FINDS, UPON EVIDENCE SATISFACTORY
TO  SAID  COURT  OR SAID COMMISSIONER, AS THE CASE
MAY BE, THAT PAYMENT OF THE TAX IMPOSED UNDER THIS
CHAPTER  WITH  RESPECT  TO  THE  INTEREST  OF  THE
DECEDENT  IN  SUCH  REAL  PROPERTY  IS  ADEQUATELY
ASSURED, OR THAT NO TAX IMPOSED UNDER THIS CHAPTER
IS DUE. 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 SUCH REAL PROPERTY HAS BEEN
RELEASED FROM THE  OPERATION  OF  SUCH  LIEN.  THE
COMMISSIONER  MAY  ADOPT REGULATIONS IN ACCORDANCE
WITH THE PROVISIONS OF CHAPTER 54  THAT  ESTABLISH
PROCEDURES TO BE FOLLOWED BY A COURT OF PROBATE OR
BY SAID COMMISSIONER, AS  THE  CASE  MAY  BE,  FOR
ISSUING  CERTIFICATES OF RELEASE OF LIEN, AND THAT
ESTABLISH THE  REQUIREMENTS  AND  CONDITIONS  THAT
MUST  BE SATISFIED IN ORDER FOR A COURT OF PROBATE
OR FOR THE COMMISSIONER, AS THE CASE  MAY  BE,  TO
FIND  THAT  THE  PAYMENT OF SUCH TAX IS ADEQUATELY
ASSURED OR THAT NO TAX IMPOSED UNDER THIS  CHAPTER
IS DUE.
    (f)   THE   AMOUNT  OF  ANY  TAX,  PENALTY  OR
INTEREST DUE AND UNPAID UNDER  THE  PROVISIONS  OF
THIS CHAPTER MAY BE COLLECTED UNDER THE PROVISIONS
OF  SECTION  12-35.  THE  WARRANT  PROVIDED  UNDER
SECTION  12-35 SHALL BE SIGNED BY THE COMMISSIONER
OR HIS AUTHORIZED AGENT.
    Sec.  5.  (NEW) If the Commissioner of Revenue
Services determines that a decedent at the time of
his  death  was  a  resident of this state and the
taxing authorities of  another  jurisdiction  have
determined  that  such decedent at the time of his
death was a resident of  such  other  jurisdiction
and  the estate of such decedent is subject to and
has paid an estate tax that  is  imposed  by  such
other  jurisdiction,  the  commissioner may make a
written agreement of compromise with  such  taxing
authorities  and  the  duly authorized executor or
administrator of such estate that a  certain  sum,
including any interest or penalties to the date of
the signing of the agreement, shall be accepted in
full  satisfaction  of  any  estate tax imposed by
this state on such estate.  Such  agreement  shall
also  fix  the amount to be accepted by such other
jurisdiction in full satisfaction  of  any  estate
tax  imposed  by such jurisdiction on such estate.
The executor or administrator of  such  estate  is
hereby authorized to make such agreement.
    Sec.  6.  Subsection  (a)  of section 12-15 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  No  officer  or  employee,  including any
former officer or former employee, of the state or
of  any  other  person  who  has  or had access to
returns or return information in  accordance  with
subdivision  (2) of subsection (c) of this section
shall disclose any return or  return  information,
except  as  hereinafter provided. The commissioner
may disclose (1) returns or return information  to
another  state  agency  or  office,  upon  written
request by the head of such agency or office, when
required  in  the  course of duty or when there is
reasonable cause to believe that any state law  is
being  violated, provided no such agency or office
shall disclose such returns or return information,
other   than   in  a  judicial  or  administrative
proceeding to which such agency  or  office  is  a
party  pertaining to the enforcement of state law,
in  a  form  which  can  be  associated  with,  or
otherwise  identify,  directly  or  indirectly,  a
particular  taxpayer;  (2)   returns   or   return
information  to  the  Auditors of Public Accounts,
when required in the course of duty under  chapter
23;  (3)  returns  or  return  information  to tax
officers  of  another  state  or  of  a   Canadian
province  or  of  a  political subdivision of such
other state or province  or  of  the  District  of
Columbia  or  to  any officer of the United States
Treasury   Department   or   the   United   States
Department   of   Health   and   Human   Services,
authorized for such purpose in accordance with  an
agreement between this state and such other state,
province, political subdivision, the  District  of
Columbia   or   department,   respectively,   when
required in the administration  of  taxes  imposed
under  the  laws  of  such  other state, province,
political subdivision, the District of Columbia or
the   United  States,  respectively,  and  when  a
reciprocal  arrangement  exists;  (4)  returns  or
return   information   in   any  action,  case  or
proceeding in any court of competent jurisdiction,
when   the   commissioner   or   any  other  state
department or agency is a  party,  and  when  such
information  is  directly involved in such action,
case  or  proceeding;  (5)   returns   or   return
information   to  a  taxpayer  or  its  authorized
representative, upon written request for a  return
filed  by  or return information on such taxpayer;
(6) returns to  a  successor,  receiver,  trustee,
executor,  administrator,  assignee,  guardian  or
guarantor  of  a  taxpayer,   when   such   person
establishes,    to   the   satisfaction   of   the
commissioner, that  he  has  a  material  interest
which will be affected by information contained in
such return; (7) information to the assessor of  a
Connecticut  municipality,  when  the  information
disclosed is limited to (A)  a  list  of  real  or
personal  property  that  is  or may be subject to
property taxes in such municipality or (B) a  list
containing  the  name of each person who is issued
any  license,  permit  or  certificate  which   is
required,  under  the provisions of this title, to
be conspicuously displayed and whose address is in
such  municipality; (8) real estate conveyance tax
return   information   or   controlling   interest
transfer  tax return information to the town clerk
of a Connecticut municipality; AND (9) ESTATE  TAX
RETURNS  AND  ESTATE TAX RETURN INFORMATION TO THE
PROBATE COURT ADMINISTRATOR OR  TO  THE  COURT  OF
PROBATE  FOR  THE DISTRICT WITHIN WHICH A DECEDENT
RESIDED AT THE DATE OF HIS DEATH, OR WITHIN  WHICH
THE  COMMISSIONER CONTENDS THAT A DECEDENT RESIDED
AT THE DATE OF HIS DEATH OR, IF A DECEDENT DIED  A
NONRESIDENT OF THIS STATE, IN THE COURT OF PROBATE
FOR THE  DISTRICT  WITHIN  WHICH  REAL  ESTATE  OR
TANGIBLE  PERSONAL  PROPERTY  OF  THE  DECEDENT IS
SITUATED,  OR  WITHIN   WHICH   THE   COMMISSIONER
CONTENDS  THAT  REAL  ESTATE  OR TANGIBLE PERSONAL
PROPERTY OF THE DECEDENT IS SITUATED.  Any  person
who  violates  any provision of this section shall
be fined not more than  one  thousand  dollars  or
imprisoned not more than one year or both.
    Sec.  7.  Subsection  (a) of section 12-39l of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)   For   purposes  of  this  section,  "tax
appeal" means an appeal from an  order,  decision,
determination  or disallowance of the Commissioner
of Revenue Services pursuant to subsection (b)  of
section 12-208, sections 12-237, 12-255m, 12-268l,
12-312 and  12-330m,  subsection  (d)  of  section
12-405k,   sections  12-422,  12-448  and  12-463,
subsection (b) of section 12-489, sections 12-522,
12-554  and  12-597,  subsection  (b)  of  section
12-638i and section 12-730; an appeal that may  be
taken  from  a  decree of a court of probate under
subsection (b) of section 12-359, [or]  subsection
(b)  of  section 12-367 OR UNDER SUBSECTION (b) OF
SECTION 12-395, AS AMENDED BY SECTION  3  OF  THIS
ACT;   an   appeal   from   any  order,  decision,
determination or disallowance of the Secretary  of
the  Office  of  Policy and Management pursuant to
sections 12-242gg to 12-242nn, inclusive;  and  an
appeal  that  may  be taken from a decision of the
Penalty Review Committee under subsection  (d)  of
section 12-3a.
    Sec.   8.   Section  45a-309  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Upon the admission of any will to probate
or the appointment  of  an  administrator  of  the
estate of any deceased person, or the placing of a
will on file under section 45a-288, the  Court  of
Probate shall make a finding as to the domicile of
such person at the time of death. Upon application
of  any interested party, the Court of Probate may
grant any administration  or  admit  any  will  to
probate  or  place  any  will on file subject to a
subsequent and final finding of domicile,  or  for
any  other  reason  the  Court of Probate may find
proper, and upon such conditions  and  limitations
as  the Court of Probate shall determine advisable
for the  due  and  proper  administration  of  the
decedent's  estate.  Any person interested in such
estate may appeal from such finding as provided in
section  45a-186,  AS AMENDED BY SECTION 9 OF THIS
ACT.
    (b)    NOTWITHSTANDING   THE   PROVISIONS   OF
SUBSECTION (a) OF THIS SECTION, ANY  SUCH  FINDING
OF  DOMICILE  SHALL  BE  SUBJECT  TO  A SUBSEQUENT
DETERMINATION OF DOMICILE IN ACCORDANCE  WITH  THE
PROVISIONS OF CHAPTER 217, AS AMENDED BY THIS ACT.
    Sec.   9.   Section  45a-186  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  Any person aggrieved by any order, denial
or decree of a court of  probate  in  any  matter,
unless  otherwise  specially  provided by law, may
appeal  therefrom  to  the   Superior   Court   in
accordance  with  subsection  (b) of this section.
Except in the case of an appeal by the state, such
person shall give security for costs in the amount
of one hundred fifty dollars, which may be paid to
the  clerk,  or a recognizance with surety annexed
to the appeal and taken  before  the  clerk  or  a
commissioner  of  the  Superior  Court  or  a bond
substantially in accordance with the bond provided
for appeals to the Supreme Court. Appeals from any
decision rendered in any case after  a  record  is
made  under  sections  51-72 and 51-73 shall be on
the record and shall not be a trial de novo.
    (b)  Any  such  appeal  shall  be filed in the
superior court for the judicial district in  which
such  court  of probate is located except that (1)
any appeal under subsection (b) of section  12-359
or  subsection (b) of section 12-367 OR SUBSECTION
(b) OF SECTION 12-395, AS AMENDED BY SECTION 3  OF
THIS  ACT, shall be filed in the judicial district
of Hartford-New Britain* and (2) any appeal  in  a
matter concerning removal of a parent as guardian,
termination of parental rights or  adoption  shall
be  filed  in  the  superior  court  for  juvenile
matters having jurisdiction over  matters  arising
in such probate district.
    Sec.  10.  (NEW)  (a)  A tax is hereby imposed
upon every generation-skipping transfer, where the
original transferor is a resident of this state at
the date of the original transfer. The  amount  of
the  tax shall be the amount of the federal credit
allowable  for  generation-skipping  transfer  tax
paid  to  any  state  under  the provisions of the
federal Internal Revenue Code in force at the date
of such generation-skipping transfer in respect to
any property included in  the  generation-skipping
transfer. If any such property is real or tangible
personal property located outside this  state  and
is  subject  to generation-skipping transfer taxes
by any state or states other  than  the  state  of
Connecticut  for  which  such  federal  credit  is
allowable,  the  amount  of  tax  due  under  this
section  shall be reduced by the lesser of (1) the
amount of any such taxes paid to such other  state
or  states  and  allowed  as  a credit against the
federal generation-skipping transfer tax;  or  (2)
an  amount  computed  by  multiplying such federal
credit by a fraction, (A) the numerator  of  which
is  the value of all transferred real and tangible
personal   property   which    is    subject    to
generation-skipping  transfer taxes and over which
such other state or states have  jurisdiction  for
generation-skipping  transfer  tax purposes to the
same  extent  to  which  this  state  would  exert
jurisdiction  for generation-skipping transfer tax
purposes under this chapter with  respect  to  the
residents  of  such  other state or states and (B)
the denominator of  which  is  the  value  of  all
transferred   property   which   is   subject   to
generation-skipping   transfer   taxes,   wherever
located.
    (b)   A  tax  is  hereby  imposed  upon  every
generation-skipping transfer, where  the  original
transferor  is not a resident of this state at the
date  of  the  original  transfer  but  where  the
generation-skipping   transfer  includes  real  or
tangible personal property located in this  state.
The  amount  of  the  tax  shall  be  computed  by
multiplying (1) the federal credit  allowable  for
generation-skipping transfer tax paid to any state
or states under  the  provisions  of  the  federal
Internal Revenue Code in force at the date of such
generation-skipping transfer  in  respect  to  any
property   included   in  the  generation-skipping
transfer by (2) a fraction, (A) the  numerator  of
which  is  the  value  of all transferred real and
tangible personal property  which  is  subject  to
generation-skipping   transfer   taxes,  which  is
located in this state and over  which  this  state
has  jurisdiction for generation-skipping transfer
tax purposes and (B) the denominator of  which  is
the  value  of  all  transferred property which is
subject  to  generation-skipping  transfer  taxes,
wherever located.
    (c)  For  purposes  of subsections (a) and (b)
of this section,  property  shall  have  the  same
value  that it has for federal generation-skipping
transfer tax purposes.
    Sec. 11. (NEW)  (a)  (1)  The  tax  imposed by
section  10 of  this  act  shall  be  due,  become
payable, and shall  be  paid,  without assessment,
notice or demand,  to  the Commissioner of Revenue
Services upon a  taxable  distribution  or taxable
termination   as   determined   under   applicable
provisions  of  the   federal  generation-skipping
transfer tax. The person liable for payment of the
federal generation-skipping transfer  tax shall be
liable for the  tax  imposed by this section. Such
tax shall be  paid  to the Commissioner of Revenue
Services on or  before  the  last  day allowed for
filing a return,  determined without regard to any
extension of time  for  filing  the return. If the
amount of tax  reported to be due on the return is
not paid on  or  before  such date, there shall be
imposed a penalty  equal  to  ten per cent of such
amount due and  unpaid.  Such  amount  shall  bear
interest at the  rate of one per cent per month or
fraction thereof from  the  due  date  of such tax
until  the  date   of   payment.  Subject  to  the
provisions  of  section   12-3a   of  the  general
statutes, the commissioner  may  waive all or part
of the penalties  provided under this section when
it is proven  to his satisfaction that the failure
to pay any tax was due to reasonable cause and was
not intentional or due to neglect.
    (2)  The Commissioner of Revenue Services may,
for reasonable cause shown, extend  the  time  for
payment.  The  commissioner may require the filing
of a tentative return and the payment of  the  tax
reported   to  be  due  in  connection  with  such
extension. Any additional tax which may  be  found
to  be due on the filing of a return as allowed by
such extension shall bear interest at the rate  of
one  per  cent  per month or fraction thereof from
the original due date of such tax to the  date  of
actual payment.
    (3)  Whenever  there  is an overpayment of the
tax  imposed  by  section  10  of  this  act,  the
Commissioner  of  Revenue Services shall return to
the  person  who  was  liable  for  the  tax,  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 due date of the tax or the  date  of  payment,
whichever is later.
    (b)  (1) The tax imposed by sections 10 to 13,
inclusive, of this act shall be reported on a  tax
return  that  shall  be  made  and  filed with the
Commissioner of Revenue Services on or before  the
last day prescribed for filing the federal return.
The person  who  is  required  to  file  a  return
reporting a generation-skipping transfer under the
federal Internal Revenue Code and the  regulations
thereunder   shall   file   the  return  with  the
Commissioner of Revenue Services. For purposes  of
this section, the requirements for filing a return
shall be satisfied by filing a duplicate  copy  of
the  federal return, with a schedule detailing the
value and location of  all  transferred  real  and
tangible  personal  property  which  is subject to
generation-skipping   transfer   taxes    attached
thereto.
    (2)  The Commissioner of Revenue Services may,
for reasonable cause shown, extend  the  time  for
filing the return.
    (3)  If  the  person required to make and file
the tax return under this chapter  fails  to  file
the   return   within  the  time  prescribed,  the
commissioner may assess and compute the  tax  upon
the   best  information  obtainable.  To  the  tax
imposed upon the basis of such return, there shall
be  added  an amount equal to ten per cent of such
tax or fifty dollars, whichever  is  greater.  The
tax  shall  bear  interest  at the rate of one per
cent per month or fraction thereof, from  the  due
date of such tax until the date of payment.
    (c)  No  person  shall be subject to a penalty
under both subsections (a) and (b) of this section
in relation to the same tax period.
    Sec.     12.     (NEW)     (a)    The    terms
"generation-skipping      transfer",      "taxable
distribution",  and "taxable termination" have the
same meaning as defined in Chapter 13 of  Subtitle
B  of  the  Internal  Revenue Code of 1986, or any
subsequent corresponding internal revenue code  of
the United States, as from time to time amended.
    (b)   The   provisions   of   section  12-548,
sections 12-550 to 12-554, inclusive, and  12-555a
of   the  general  statutes  shall  apply  to  the
provisions of sections 10  to  13,  inclusive,  of
this  act  in  the  same  manner and with the same
force and  effect  as  if  the  language  of  said
section   12-548,   sections   12-550  to  12-554,
inclusive, and 12-555a had  been  incorporated  in
full into said sections and had expressly referred
to the tax imposed under said sections, except  to
the extent that any such provision is inconsistent
with a provision of said sections.
    Sec.  13.  (NEW)  If  the  amount  of  federal
generation-skipping transfer  tax  reported  on  a
federal generation-skipping transfer tax return is
changed or corrected by the United States Internal
Revenue  Service,  the person required to make and
file the generation-skipping transfer  tax  return
under  sections  10  to 13, inclusive, of this act
shall  within  ninety   days   after   the   final
determination  of  such change or correction or as
otherwise required by the commissioner  submit  to
the  commissioner  an  affidavit  disclosing  such
change  or  correction,  and  shall  concede   the
accuracy of such determination or state wherein it
is erroneous, and thereafter promptly  furnish  to
the   commissioner   any  information,  schedules,
records, documents  or  papers  relating  to  such
change  or correction as he requires. The time for
filing such  affidavit  may  be  extended  by  the
commissioner   upon  due  cause  shown.  If,  upon
examination,  the  commissioner  finds  that  such
person  is liable for the payment of an additional
tax, he shall, within a reasonable time  from  the
receipt  of  such affidavit, notify such person 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,
such person shall pay to the commissioner, in cash
or by check, draft or money order,  drawn  to  the
order of the Commissioner of Revenue Services, the
amount of such additional tax  and  interest.  If,
upon  examination  of  such  affidavit and related
information,  the  commissioner  finds  that  such
person  has overpaid the tax due the state and has
not received from or been allowed  by  the  United
States government, or any agency thereof, a credit
or a benefit, as a deduction or otherwise, for  or
by  reason  of such overpayment, such person shall
be paid by the State Treasurer, upon order of  the
Comptroller, the amount of such overpayment.
    Sec.  14.  Subsection (b) of section 12-355 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (b)  If  such  an  agreement cannot be reached
within  thirty  days  after  the  mailing  by  the
Commissioner  of Revenue Services to the fiduciary
of  an  offer  to   compromise   the   tax,   said
commissioner  shall, if the return filed under the
provisions of section  12-359  is  correctly  made
out, make a computation of the tax, based upon the
whole net taxable estate, upon the assumption that
the contingencies will so resolve themselves as to
lead  to  the  highest  tax  possible  under   the
provisions  of  this  chapter,  and  the executor,
trustee and transferee shall be  liable  for  such
tax  as in other cases. Copies of such computation
shall be filed, and further proceedings  taken  in
connection   therewith,  in  accordance  with  the
provisions of section 12-367. If, after such first
computation  and  upon the determination of any of
the contingencies,  any  part  of  the  estate  so
passes  as  to  lead  to  a  lower tax, and if the
fiduciary, within two years of such determination,
notifies  the  Commissioner  of  Revenue  Services
thereof,  the  Commissioner  of  Revenue  Services
shall  forthwith  recompute  the  whole tax in the
same manner as would have been done originally had
the  outcome of the contingencies in question been
known.  Copies  of  such  recomputation  shall  be
filed, and further proceedings taken in connection
therewith, in accordance with  the  provisions  of
section  12-367.  Upon  the final determination of
the amount of tax due  on  the  recomputation  the
commissioner shall certify to the Comptroller that
a  refund  is  due  in  an  amount  equal  to  the
difference  between  the  tax  paid at the highest
rate and the tax actually  due  as  shown  by  the
recomputation.    BEFORE    CERTIFYING    TO   THE
COMPTROLLER THAT A REFUND IS DUE, THE COMMISSIONER
SHALL  DETERMINE WHETHER ANY ADDITIONAL ESTATE TAX
IS DUE UNDER SECTION 12-391, AS AMENDED BY SECTION
1  OF  THIS ACT, ON ACCOUNT OF SUCH RECOMPUTATION,
AND,  IF  THE  COMMISSIONER  SO  DETERMINES,   THE
COMMISSIONER SHALL REDUCE, BUT NOT BELOW ZERO, THE
AMOUNT OF THE REFUND OTHERWISE DUE BY  THE  AMOUNT
OF  SUCH ADDITIONAL ESTATE TAX. Such refund, AS SO
REDUCED, shall bear interest at the rate  of  five
per  cent  compounded  annually  from  the date of
payment of the original tax to  the  date  of  the
determination  of  the  contingencies and shall be
paid  by  the  Treasurer,  on  the  order  of  the
Comptroller,   to  the  trustee  or  other  proper
fiduciary, who shall distribute it  ratably  among
the  several  beneficiaries  equitably entitled to
it. This subsection  shall  not  be  construed  to
prevent  more than one refund in one estate if the
circumstances warrant.
    Sec.   15.   Section  12-394  of  the  general
statutes is repealed.
    Sec.  16.  This  act shall take effect July 1,
1997, except that (1) sections 1 to 5,  inclusive,
14 and 15 shall be applicable to the estate of any
person whose death occurs  on  or  after  July  1,
1997,  and (2) sections 10 to 13, inclusive, shall
be applicable to taxable distributions or  taxable
terminations occurring on or after July 1, 1997.

Approved June 24, 1997