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Citations Affected: IC 6-4.1.

Synopsis: Inheritance tax exemption for lineal descendants. Provides a complete exemption from the inheritance tax for property interests transferred to lineal descendants and ancestors (Class A transferees) with respect to persons who die after June 30, 2000.

Effective: July 1, 2000.

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Ford

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    January 10, 2000, read first time and referred to Committee on Finance.

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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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 1999 General Assembly.

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

    SECTION 1. IC 6-4.1-3-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 10. (a) With respect to a person who dies before July 1, 2000, 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, 2000, 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, 2000]: 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 10 through 15 of IC 6-4.1-3 with respect to the property interests so transferred.
    (b) With respect to a decedent whose death occurred before July 1, 2000, 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 decedent whose death occurred after June 30, 2000, the inheritance tax imposed on the decedent's transfer of property interests to a particular Class A transferee is zero dollars ($0).
     (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

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    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