Connecticut Seal

General Assembly

 

Bill No. 7101

December Special Session, 2009

 

LCO No. 10016

 

*10016__________*

Referred to Committee on No Committee

 

Introduced by:

 

REP. DONOVAN, 84th Dist.

SEN. WILLIAMS, 29th Dist.

 

AN ACT CONCERNING THE ESTATE AND GIFT TAX.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (g) of section 12-391 of the general statutes, as amended by section 116 of public act 09-3 of the June special session, is repealed and the following is substituted in lieu thereof (Effective January 1, 2010, and applicable to estates of decedents who die on or after said date):

(g) (1) With respect to the estates of decedents dying on or after January 1, 2005, but prior to January 1, 2010, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T1

Amount of Connecticut

 

T2

Taxable Estate

Rate of Tax

T3

   

T4

Not over $2,000,000

None

T5

Over $2,000,000

 

T6

but not over $2,100,000

5.085% of the excess over $0

T7

Over $2,100,000

$106,800 plus 8% of the excess

T8

but not over $2,600,000

over $2,100,000

T9

Over $2,600,000

$146,800 plus 8.8% of the excess

T10

but not over $3,100,000

over $2,600,000

T11

Over $3,100,000

$190,800 plus 9.6% of the excess

T12

but not over $3,600,000

over $3,100,000

T13

Over $3,600,000

$238,800 plus 10.4% of the excess

T14

but not over $4,100,000

over $3,600,000

T15

Over $4,100,000

$290,800 plus 11.2% of the excess

T16

but not over $5,100,000

over $4,100,000

T17

Over $5,100,000

$402,800 plus 12% of the excess

T18

but not over $6,100,000

over $5,100,000

T19

Over $6,100,000

$522,800 plus 12.8% of the excess

T20

but not over $7,100,000

over $6,100,000

T21

Over $7,100,000

$650,800 plus 13.6% of the excess

T22

but not over $8,100,000

over $7,100,000

T23

Over $8,100,000

$786,800 plus 14.4% of the excess

T24

but not over $9,100,000

over $8,100,000

T25

Over $9,100,000

$930,800 plus 15.2% of the excess

T26

but not over $10,100,000

over $9,100,000

T27

Over $10,100,000

$1,082,800 plus 16% of the excess

T28

 

over $10,100,000

(2) With respect to the estates of decedents dying on or after January 1, 2010, but prior to January 1, 2012, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T29

Amount of Connecticut

 

T30

Taxable Estate

Rate of Tax

T31

   

T32

Not over $2,000,000

None

T33

Over $2,000,000

8.0% of the excess over

T34

but not over $2,100,000

$2,000,000

T35

Over $2,100,000

$8,000 plus 9.6% of the excess

T36

but not over $2,600,000

over $2,100,000

T37

Over $2,600,000

$56,000 plus 11.2% of the

T38

but not over $3,100,000

excess over $2,600,000

T39

Over $3,100,000

$112,000 plus 12.8% of the

T40

but not over $3,600,000

excess over $3,100,000

T41

Over $3,600,000

$176,000 plus 13.6% of the

T42

but not over $4,100,000

excess over $3,600,000

T43

Over $4,100,000

$244,000 plus 14.4% of the

T44

but not over $5,100,000

excess over $4,100,000

T45

Over $5,100,000

$388,000 plus 15.2% of the

T46

but not over $6,100,000

excess over $5,100,000

T47

Over $6,100,000

$540,000 plus 16.0% of the

T48

but not over $7,100,000

excess over $6,100,000

T49

Over $7,100,000

$700,000 plus 16.8% of the

T50

but not over $8,100,000

excess over $7,100,000

T51

Over $8,100,000

$868,000 plus 17.2% of the

T52

but not over $9,100,000

excess over $8,100,000

T53

Over $9,100,000

$1,040,000 plus 17.6% of the

T54

but not over $10,100,000

excess over $9,100,000

T55

Over $10,100,000

$1,216,000 plus 18.0% of the

T56

 

excess over $10,100,000

[(2)] (3) With respect to the estates of decedents dying on or after January 1, [2010] 2012, the tax based on the Connecticut taxable estate shall be as provided in the following schedule:

T57

Amount of Connecticut

 

T58

Taxable Estate

Rate of Tax

T59

   

T60

Not over $3,500,000

None

T61

Over $3,500,000

7.2% of the excess

T62

but not over $3,600,000

over $3,500,000

T63

Over $3,600,000

$7,200 plus 7.8% of the excess

T64

but not over $4,100,000

over $3,600,000

T65

Over $4,100,000

$46,200 plus 8.4% of the excess

T66

but not over $5,100,000

over $4,100,000

T67

Over $5,100,000

$130,200 plus 9.0% of the excess

T68

but not over $6,100,000

over $5,100,000

T69

Over $6,100,000

$220,200 plus 9.6% of the excess

T70

but not over $7,100,000

over $6,100,000

T71

Over $7,100,000

$316,200 plus 10.2% of the excess

T72

but not over $8,100,000

over $7,100,000

T73

Over $8,100,000

$418,200 plus 10.8% of the excess

T74

but not over $9,100,000

over $8,100,000

T75

Over $9,100,000

$526,200 plus 11.4% of the excess

T76

but not over $10,100,000

over $9,100,000

T77

Over $10,100,000

$640,200 plus 12% of the excess

T78

 

over $10,100,000

Sec. 2. Subsection (a) of section 12-642 of the general statutes, as amended by section 118 of public act 09-3 of the June special session and section 12 of public act 09-8 of the September special session, is repealed and the following is substituted in lieu thereof (Effective January 1, 2010):

(a) (1) With respect to calendar years commencing prior to January 1, 2001, the tax imposed by section 12-640 for the calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T79

Amount of Taxable Gifts

Rate of Tax

T80

   

T81

Not over $25,000

1%

T82

Over $25,000

$250, plus 2% of the excess

T83

but not over $50,000

over $25,000

T84

Over $50,000

$750, plus 3% of the excess

T85

but not over $75,000

over $50,000

T86

Over $75,000

$1,500, plus 4% of the excess

T87

but not over $100,000

over $75,000

T88

Over $100,000

$2,500, plus 5% of the excess

T89

but not over $200,000

over $100,000

T90

Over $200,000

$7,500, plus 6% of the excess

T91

 

over $200,000

(2) With respect to the calendar years commencing January 1, 2001, January 1, 2002, January 1, 2003, and January 1, 2004, the tax imposed by section 12-640 for each such calendar year shall be at a rate of the taxable gifts made by the donor during the calendar year set forth in the following schedule:

T92

Amount of Taxable Gifts

Rate of Tax

T93

   

T94

Over $25,000

$250, plus 2% of the excess

T95

but not over $50,000

over $25,000

T96

Over $50,000

$750, plus 3% of the excess

T97

but not over $75,000

over $50,000

T98

Over $75,000

$1,500, plus 4% of the excess

T99

but not over $100,000

over $75,000

T100

Over $100,000

$2,500, plus 5% of the excess

T101

but not over $675,000

over $100,000

T102

Over $675,000

$31,250, plus 6% of the excess

T103

 

over $675,000

(3) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2005, but prior to January 1, 2010, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, but prior to January 1, 2010, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision:

T104

Amount of Taxable Gifts

Rate of Tax

T105

   

T106

Not over $2,000,000

None

T107

Over $2,000,000

 

T108

but not over $2,100,000

5.085% of the excess over $0

T109

Over $2,100,000

$106,800 plus 8% of the excess

T110

but not over $2,600,000

over $2,100,000

T111

Over $2,600,000

$146,800 plus 8.8% of the excess

T112

but not over $3,100,000

over $2,600,000

T113

Over $3,100,000

$190,800 plus 9.6% of the excess

T114

but not over $3,600,000

over $3,100,000

T115

Over $3,600,000

$238,800 plus 10.4% of the excess

T116

but not over $4,100,000

over $3,600,000

T117

Over $4,100,000

$290,800 plus 11.2% of the excess

T118

but not over $5,100,000

over $4,100,000

T119

Over $5,100,000

$402,800 plus 12% of the excess

T120

but not over $6,100,000

over $5,100,000

T121

Over $6,100,000

$522,800 plus 12.8% of the excess

T122

but not over $7,100,000

over $6,100,000

T123

Over $7,100,000

$650,800 plus 13.6% of the excess

T124

but not over $8,100,000

over $7,100,000

T125

Over $8,100,000

$786,800 plus 14.4% of the excess

T126

but not over $9,100,000

over $8,100,000

T127

Over $9,100,000

$930,800 plus 15.2% of the excess

T128

but not over $10,100,000

over $9,100,000

T129

Over $10,100,000

$1,082,800 plus 16% of the excess

T130

 

over $10,100,000

(4) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, 2010, but prior to January 1, 2012, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T131

Amount of Taxable Gifts

Rate of Tax

T132

   

T133

Not over $2,000,000

None

T134

Over $2,000,000

8.0% of the excess over

T135

but not over $2,100,000

$2,000,000

T136

Over $2,100,000

$8,000 plus 9.6% of the excess

T137

but not over $2,600,000

over $2,100,000

T138

Over $2,600,000

$56,000 plus 11.2% of the

T139

but not over $3,100,000

excess over $2,600,000

T140

Over $3,100,000

$112,000 plus 12.8% of the

T141

but not over $3,600,000

excess over $3,100,000

T142

Over $3,600,000

$176,000 plus 13.6% of the

T143

but not over $4,100,000

excess over $3,600,000

T144

Over $4,100,000

$244,000 plus 14.4% of the

T145

but not over $5,100,000

excess over $4,100,000

T146

Over $5,100,000

$388,000 plus 15.2% of the

T147

but not over $6,100,000

excess over $5,100,000

T148

Over $6,100,000

$540,000 plus 16.0% of the

T149

but not over $7,100,000

excess over $6,100,000

T150

Over $7,100,000

$700,000 plus 16.8% of the

T151

but not over $8,100,000

excess over $7,100,000

T152

Over $8,100,000

$868,000 plus 17.2% of the

T153

but not over $9,100,000

excess over $8,100,000

T154

Over $9,100,000

$1,040,000 plus 17.6% of the

T155

but not over $10,100,000

excess over $9,100,000

T156

Over $10,100,000

$1,216,000 plus 18.0% of the

T157

 

excess over $10,100,000

[(4)] (5) With respect to Connecticut taxable gifts, as defined in section 12-643, made by a donor during a calendar year commencing on or after January 1, [2010] 2012, including the aggregate amount of all Connecticut taxable gifts made by the donor during all calendar years commencing on or after January 1, 2005, the tax imposed by section 12-640 for the calendar year shall be at the rate set forth in the following schedule, with a credit allowed against such tax for any tax previously paid to this state pursuant to this subdivision or pursuant to subdivision (3) or (4) of this subsection, provided such credit shall not exceed the amount of tax imposed by this section:

T158

Amount of Taxable Gifts

Rate of Tax

T159

   

T160

Not over $3,500,000

None

T161

Over $3,500,000

7.2% of the excess

T162

but not over $3,600,000

over $3,500,000

T163

Over $3,600,000

$7,200 plus 7.8% of the excess

T164

but not over $4,100,000

over $3,600,000

T165

Over $4,100,000

$46,200 plus 8.4% of the excess

T166

but not over $5,100,000

over $4,100,000

T167

Over $5,100,000

$130,200 plus 9.0% of the excess

T168

but not over $6,100,000

over $5,100,000

T169

Over $6,100,000

$220,200 plus 9.6% of the excess

T170

but not over $7,100,000

over $6,100,000

T171

Over $7,100,000

$316,200 plus 10.2% of the excess

T172

but not over $8,100,000

over $7,100,000

T173

Over $8,100,000

$418,200 plus 10.8% of the excess

T174

but not over $9,100,000

over $8,100,000

T175

Over $9,100,000

$526,200 plus 11.4% of the excess

T176

but not over $10,100,000

over $9,100,000

T177

Over $10,100,000

$640,200 plus 12% of the excess

T178

 

over $10,100,000

Sec. 3. Subparagraph (C) of subdivision (3) of subsection (b) of section 12-392 of the general statutes, as amended by section 10 of public act 09-8 of the September special session, is repealed and the following is substituted in lieu thereof (Effective from passage, and applicable to estates of decedents dying on or after January 1, 2010):

(C) A tax return shall be filed, in the case of every decedent who dies on or after January 1, [2010] 2012, and at the time of death was (i) a resident of this state, or (ii) 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. If the decedent's Connecticut taxable estate is over three million five hundred thousand dollars, such tax return shall be filed with the Commissioner of Revenue Services and a copy of such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated. If the decedent's Connecticut taxable estate is three million five hundred thousand dollars or less, such return shall be filed with the court of probate for the district within which the decedent resided at the date of his or her death or, if the decedent died a nonresident of this state, the court of probate for the district within which such real property or tangible personal property is situated, and no such return shall be filed with the Commissioner of Revenue Services. The judge of probate for the district in which such return is filed shall review each such return and shall issue a written opinion to the estate representative in each case in which the judge determines that the estate is not subject to tax under this chapter.

Sec. 4. Subsection (e) of section 12-398 of the general statutes, as amended by section 11 of public act 09-8 of the September special session, is repealed and the following is substituted in lieu thereof (Effective from passage, and applicable to estates of decedents dying on or after January 1, 2010):

(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. If the decedent died prior to January 1, 2010, and such decedent's Connecticut taxable estate is two million dollars or less, or if the decedent died on or after January 1, [2010] 2012, and such decedent's Connecticut taxable estate is three million five hundred thousand dollars or less, the certificate of release of lien shall be issued by the court of probate. 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.

Sec. 5. Section 73 of public act 09-3 of the June special session, as amended by section 42 of public act 09-8 of the September special session, is amended to read as follows (Effective from passage):

(a) (1) Notwithstanding the provisions of section 4-30a of the general statutes, the State Treasurer shall, on [the effective date of this section] October 5, 2009, transfer the sum of one billion thirty-nine million seven hundred thousand dollars from the Budget Reserve Fund to the resources of the General Fund to be used as revenue for the fiscal year ending June 30, 2010.

(2) Notwithstanding the provisions of section 4-30a of the general statutes, the State Treasurer shall, on the effective date of this section, transfer the sum of seventy million three hundred thousand dollars from the Budget Reserve Fund to the resources of the General Fund to be used as revenue for the fiscal year ending June 30, 2010.

(b) Notwithstanding the provisions of section 4-30a of the general statutes, the State Treasurer shall, on July 1, 2010, transfer the sum of [three hundred forty-two million] two hundred seventy-one million seven hundred thousand dollars from the Budget Reserve Fund to the resources of the General Fund to be used as revenue for the fiscal year ending June 30, 2011.

This act shall take effect as follows and shall amend the following sections:

Section 1

January 1, 2010, and applicable to estates of decedents who die on or after said date

12-391(g)

Sec. 2

January 1, 2010

12-642(a)

Sec. 3

from passage, and applicable to estates of decedents dying on or after January 1, 2010

12-392(b)(3)(C)

Sec. 4

from passage, and applicable to estates of decedents dying on or after January 1, 2010

12-398(e)

Sec. 5

from passage

PA 09-3 of the June Sp. Sess., Sec. 73