Introduced Version




SENATE BILL No. 234

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-4.1.

Synopsis: Elimination of the inheritance tax. Provides a complete exemption from inheritance tax for property interests transferred to lineal descendants or ancestors with respect to persons who die after June 30, 2000. Phases out the inheritance tax on property interests transferred to other categories of transferees by increasing exemptions. Provides that no inheritance tax will be imposed upon property interests transferred to other categories of transferees with respect to persons who die after June 30, 2002.

Effective: July 1, 2000.



Zakas


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




Introduced

Second Regular Session 111th General Assembly (2000)


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. 234


    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, 2000]: Sec. 10. (a) With respect to a person who dies before July 1, 2000, the first one hundred thousand dollars ($100,000) of the decedent's 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 the decedent's property interests transferred to a Class A transferee is exempt from the inheritance tax.
    SECTION 2. IC 6-4.1-3-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 11. (a) With respect to a person who dies before July 1, 2000, the first five hundred dollars ($500) of the decedent's property interests transferred to a Class B 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 amount of the decedent's property interests transferred to a Class

B transferee as set forth in the following table is exempt from the inheritance tax:
DATE OF        AMOUNT OF
DEATH        EXEMPTION
            FOR CLASS B             TRANSFEREE
After June 30, 2000, and        The first
    before July 1, 2001        $100,000
After June 30, 2001, and        The first
    before July 1, 2002        $120,000
    SECTION 3. IC 6-4.1-3-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 12. (a) With respect to a person who dies before July 1, 2000, the first one hundred dollars ($100) of the decedent's property interests transferred to a Class C 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 amount of the decedent's property interests transferred to a Class C transferee as set forth in the following table is exempt from the inheritance tax:
DATE OF        AMOUNT OF
DEATH        EXEMPTION
            FOR CLASS C
            TRANSFEREE
After June 30, 2000, and        The first
    before July 1, 2001        $20,000
After June 30, 2001, and        The first
    before July 1, 2002        $24,000
    SECTION 4. 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 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 who dies 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 person who dies after June 30, 2000, the inheritance tax imposed on a transfer of the decedent's property interests to a particular Class A transferee is zero dollars ($0).
     (d) With respect to a person who dies before July 1, 2002, 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
     (e) With respect to a person who dies after June 30, 2002, the inheritance tax imposed on a transfer of the decedent's property interests to a particular Class B transferee is zero dollars ($0).
    (d) (f) With respect to a person who dies before July 1, 2002, 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
     (g) With respect to a person who dies after June 30, 2002, the inheritance tax imposed on a transfer of the decedent's property interests to a particular Class C transferee is zero dollars ($0).