Introduced Version






SENATE BILL No. 288

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-4.1.

Synopsis: Inheritance tax exemption for Class A transferees. Provides an exemption from the inheritance tax for property transferred to lineal descendants and ancestors (Class A transferees) with respect to persons who die after June 30, 2004.

Effective: July 1, 2004.





Ford




    January 8, 2004, read first time and referred to Committee on Finance.







Introduced

Second Regular Session 113th General Assembly (2004)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 288



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 6-4.1-3-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 10. (a) With respect to a person who dies before July 1, 2004, the first one hundred thousand dollars ($100,000) of property interests transferred to a Class A transferee under a taxable transfer or transfers is exempt from the inheritance tax.
     (b) With respect to a person who dies after June 30, 2004, the entire amount of property interests transferred to a Class A transferee is exempt from the inheritance tax.
    SECTION 2. IC 6-4.1-5-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) For purposes of this section, the net taxable value of property interests transferred by a decedent to a particular transferee equals the remainder of:
        (1) the total fair market value of the property interests transferred by the decedent to the transferee under a taxable transfer or transfers; minus
        (2) the total amount of exemptions and deductions provided under

sections 9.1 through 15 of IC 6-4.1-3 IC 6-4.1-3-10 through IC 6-4.1-3-15 with respect to the property interests so transferred.
    (b) With respect to a person whose death occurred before July 1, 2004, the inheritance tax imposed on a decedent's transfer of property interests to a particular Class A transferee is prescribed in the following table:
    NET TAXABLE VALUE OF
    PROPERTY INTERESTS
    TRANSFERRED    INHERITANCE TAX
    $25,000 or less .......    1% of net taxable value
    over $25,000 but not
        over $50,000 .......    $250, plus 2% of net
            taxable value over $25,000
    over $50,000 but not
        over $200,000 ......    $750, plus 3% of net taxable
            value over $50,000
    over $200,000 but not
        over $300,000 ......    $5,250, plus 4% of net
            taxable value over $200,000
    over $300,000 but not
        over $500,000 ......    $9,250, plus 5% of net
            taxable value over $300,000
    over $500,000 but not
        over $700,000 ......    $19,250, plus 6% of net
            taxable value over $500,000
    over $700,000 but not
        over $1,000,000 ....    $31,250, plus 7% of net
            taxable value over $700,000
    over $1,000,000 but not
        over $1,500,000 ....    $52,250, plus 8% of net
            taxable value over $1,000,000
    over $1,500,000 .......    $92,250, plus 10% of net
            taxable value over $1,500,000
    (c) With respect to a person whose death occurred after June 30, 2004, no inheritance tax is imposed on the person's transfer of property interests to a particular Class A transferee.
     (d) The inheritance tax imposed on a decedent's transfer of property interests to a particular Class B transferee is prescribed in the following table:
    NET TAXABLE VALUE OF
    PROPERTY INTERESTS
    TRANSFERRED    INHERITANCE TAX


    $100,000 or less ......    7% of net taxable value
    over $100,000 but not
        over $500,000 ......    $7,000, plus 10% of net
            taxable value over $100,000
    over $500,000 but not
        over $1,000,000 ....    $47,000, plus 12% of net
            taxable value over $500,000
    over $1,000,000 .......    $107,000, plus 15% of net
            taxable value over $1,000,000
    (d) (e) The inheritance tax imposed on a decedent's transfer of property interests to a particular Class C transferee is prescribed in the following table:
    NET TAXABLE VALUE OF
    PROPERTY INTERESTS
    TRANSFERRED    INHERITANCE TAX
    $100,000 or less ......    10% of net taxable value
    over $100,000 but not
        over $1,000,000 ....    $10,000, plus 15% of net
            taxable value over
            $100,000
    over $1,000,000 .......    $145,000, plus 20% of
            net taxable value over
            $1,000,000