OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-367

AN ACT CONCERNING THE GIFT AND ESTATE TAX.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Revenue Serv., Dept.

GF - Uncertain

See Below

See Below

Municipal Impact: None

Explanation

The bill alters the taxable base under the Estate Tax by: 1) excluding certain Connecticut taxable gifts, and 2) including certain Connecticut gift taxes paid during the three years prior to the decedent's death. It is uncertain whether the fiscal impact of the narrowing of the base under the former provision is entirely offset by the expansion of the base under the latter provision.

According to the Executive Committee of the Estates & Probate Section of the Connecticut Bar Association, fewer than five estates within the last year would have been impacted by the provisions narrowing the base, while at least one estate would have been impacted by the provisions expanding the base. There were a total of 486 Estate Tax filers in FY 13.

The actual impact of the bill is dependent on the magnitude of the taxable base exclusions and inclusions that would occur in the future.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

Sources:

Connecticut Bar Association Executive Committee of Estates & Probate Section

 

Department of Revenue Services Annual Report