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statutes is repealed and the following is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