Constitution of the United States of America, Freedom Documents

I D A H O S T A T E L E G I S L A T U R E

TITLE 14 - ESTATES OF DECEDENTS

CHAPTER 4 - ESTATE AND TRANSFER TAX

14-401.Short title. This chapter shall be known and may be cited as the "Estate and Transfer Tax Reform Act of 1988."

14-402.Definitions. As used in this chapter: (1) "Commission" means the Idaho state tax commission. (2) "Decedent" means a deceased individual. (3) "Federal credit" means the maximum amount of the credit for state death taxes allowed by section 2011 of the United States Internal Revenue Code of 1986, and the maximum amount of the credit for the generation skipping tax allowed by section 2604 of the United States Internal Revenue Code of 1986, in respect to a decedent’s taxable estate. (4) "Federal estate tax return" means any form or other document which establishes, changes or amends a federal estate tax amount. (5) "Gross estate" means "gross estate" as defined and used in section 2031 of the United States Internal Revenue Code of 1986. (6) "Internal Revenue Code of 1986" shall be as defined in section 63-3004, Idaho Code. (7) "Nonresident" means a decedent who was domiciled outside Idaho at the time of death. (8) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof. (9) "Personal representative" means the executor or administrator of the decedent or, if no executor or administrator is appointed, qualified and acting, any person who has possession of any property. (10) "Property" means property included in the gross estate. (11) "Release" means a release of no tax due or a receipt for payment of the tax due under this chapter. (12) "Resident" means a decedent who was domiciled in Idaho at the time of death. (13) "Section 2011" means section 2011 of the United States Internal Revenue Code of 1986. (14) "Section 2032A" means section 2032A of the United States Internal Revenue Code of 1986. (15) "Section 6501" means section 6501 of the United States Internal Revenue Code of 1986. (16) "Taxable estate" means "taxable estate" as defined in section 2051 of the United States Internal Revenue Code of 1986. (17) "Transfer" means "transfer" as defined and used in section 2001 of the United States Internal Revenue Code of 1986.

14-403.Residents -- Tax imposed -- Credit for tax paid other state. (1) A tax in an amount equal to the federal credit is imposed on the transfer of the taxable estate of every resident. (2) If any property of a resident is subject to a death tax imposed by another state of which a credit is allowed by section 2011 and if the tax imposed by the other state is not qualified by a reciprocal provision allowing the property to be taxed in the state of decedent’s domicile, the amount of the tax due under this section shall be credited with the lesser of: (a) The amount of the death tax paid the other state and credited against the federal estate tax; or (b) An amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property subject to the death tax imposed by the other state and the denominator of which is the value of the decedent’s gross estate. (3) Property of a resident includes: (a) Real property located in this state; (b) Tangible personal property having actual situs in this state; and (c) Intangible personal property owned by a resident regardless of where it is located.

14-404.Nonresidents -- Tax imposed -- Exemption. (1) A tax in an amount computed as provided in this section is imposed on the transfer of the taxable estate located in Idaho of every nonresident. (2) The tax is the amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property located in Idaho and the denominator of which is the value of the decedent’s gross estate. (3) The transfer of the property of a nonresident is exempt from the tax imposed in this section to the extent that the same types of property of a resident are exempt from taxation under the laws of the state in which the nonresident resides.

14-404A.Special use valuation -- Recapture. If property valued under the special use valuation provisions of section 2032A ceases to qualify for special use valuation within the recapture period provided in section 2032A, an additional tax, equal to the amount of any increase in the state death tax credit allowed under section 2011 attributable to the change in the value of the estate resulting from the recapture required by section 2032A shall be due. The person required to provide notice to the internal revenue service that property subject to special use valuation has ceased to qualify for such valuation shall provide a copy of such notice to the commission. The limit upon assessment of the additional tax imposed by the provisions of this section, including any penalty and interest, shall be one (1) year from the date on which the commission receives such notice.

14-405.Tax returns -- Date to be filed -- Extensions. (1) The personal representative of every estate subject to the tax imposed in this chapter who is required by the laws of the United States to file a federal estate tax return shall file with the commission on or before the date the federal estate tax return is required to be filed, including any extension of time for filing the federal estate tax return: (a) A return for the taxes due under this chapter; and (b) A copy of the federal estate tax return. (2) If the personal representative has obtained an extension of time for filing the federal estate tax return, the filing required by subsection (1) of this section shall be similarly extended until the end of the time period granted in the extension of time for the federal estate tax return. A copy of the extension shall be filed with the commission within thirty (30) days of issuance. (3) In addition to the extension of time for filing the return for the tax due under this chapter provided for under subsection (2) of this section, the commission, upon good cause shown, may extend the time for filing this return for any further period of time determined by the commission to be proper. (4) No Idaho return need be filed if the estate is not subject to the tax imposed in this chapter.

14-406.Date payment due -- Date deemed received -- Interest. (1) Any tax due under this chapter shall be paid by the personal representative to the commission on or before the date the return for the taxes is required to be filed under section 14-405, Idaho Code. (2) For the purposes of this chapter, a return or payment delivered to the commission by United States mail shall be considered to have been received by the commission on the date of the United States postmark stamped on the cover in which the payment or the request for release of nonliability is mailed, if the postmark date is within the time allowed for filing the return or making the payment, including any extensions. (3) The commission, for good cause shown, may extend the time for payment of the tax due under this chapter beyond the date of payment provided for in subsection (1) of this section, but no extension for payment of this tax may be granted in excess of fourteen (14) years from the date the tax was due. (4) Any tax due under this chapter which is not paid by the time prescribed for the filing of the return as provided in section 14-405, Idaho Code, not including any extensions in respect to the filing of the return or the payment of the tax, shall bear interest at the rate provided for in section 63-3045, Idaho Code, from the date any tax is due until paid.

14-407.Amended returns -- Final determination. (1) If the personal representative files an amended federal estate tax return, the personal representative shall immediately file with the commission an amended return covering the tax imposed by this chapter together with a copy of the amended federal estate tax return. If the personal representative is required to pay an additional tax under this chapter pursuant to the amended return, the personal representative shall pay the additional tax, together with interest as provided in section 14-406, Idaho Code, at the same time the personal representative files the amended return. (2) Upon final determination of the federal tax due with respect to any transfer, the personal representative shall, within sixty (60) days after the determination, give written notice of it to the commission in such form as may be prescribed by rule. If any additional tax is due under this chapter by reason of the determination, the personal representative shall pay the same, together with interest as provided in section 14-406, Idaho Code, at the same time he files the notice.

14-408.Refund for overpayments -- Limitation. If the commission determines that a personal representative has overpaid the tax due under this chapter, the commission is authorized to refund the amount of the over payment [overpayment], together with interest at the rate provided for in section 63-3045, Idaho Code, provided, however, that in case of a voluntary and unrequested payment in excess of actual tax liability, no interest shall be allowed when such excess is refunded. No claim for refund may be initiated more than three (3) years after the date of a federal estate tax closing letter or an amended federal estate tax closing letter.

14-409.Tax as lien -- Instruments issued upon payment -- Certificate of transfer -- Liens on special use property. (1) The tax provided for in this chapter, together with applicable interest and penalties, shall be and remain a lien on the decedent’s estate from the time of the death of the decedent until paid. (2) Upon payment of the tax, together with applicable interest and penalties, the commission shall issue to the personal representative a receipt reflecting payment, a certificate of transfer and any other appropriate instruments reflecting payment. (3) In addition to the lien imposed in subsection (1) of this section, a lien is hereby imposed upon the property which is valued according to section 2032A. This additional lien shall be for the amount of tax which would have been due under the provisions of this chapter had the property not been valued according to section 2032A. This lien shall remain upon the property until the recapture period required in section 2032A has expired or until any additional tax imposed in section 14-404A, Idaho Code, has been paid.

14-410.Personal representative -- Payment of tax -- Sale of property -- Liability. (1) The personal representative has the duty to pay the tax, together with applicable interest and penalties, imposed on property under this chapter. The personal representative may sell so much of the property regardless of whether any portion of the property is included in a specific bequest or devise, as is necessary to pay the proportionate amount of the tax due under this chapter, together with applicable interest and penalties, and the fees and expenses of the sale, unless the legatee or devisee pays the personal representative the proportionate part of the tax due. (2) Any personal representative who distributes any portion of the property without first paying the tax imposed by this chapter on that property, including applicable interest and penalties, or having another make the payment, is personally liable for the tax, including applicable interest and penalties.

14-411.Personal representative -- Final account -- Approval by commission. (1) No final account of a personal representative in any probate proceeding who is required to file a federal estate tax return may be allowed and approved by the court before whom the proceeding is pending unless it is shown by evidence satisfactory to the commission and the court finds that the tax imposed on the property in this chapter, including applicable interest and penalties, has been paid in full, that an agreement for the payment of the tax on an installment basis has been entered into, or that no tax is due. (2) The commission shall have the authority to determine the fair market value of property subject to tax under this chapter and in making such determination, the commission may require that appraisals or other necessary information be supplied by the personal representative. Any deficiencies must be asserted and assessments made within the time limitations as set forth under section 6501 and the regulations thereunder.

14-412.Administration and enforcement by commission. (1) The commission is charged with the administration and enforcement of the provisions of this chapter and may adopt such rules as may be necessary to effectuate the purposes of this chapter. (2) The commission shall collect the tax provided for under this chapter, including applicable interest and penalties, and shall represent this state in all matters pertaining to collection, either before courts or otherwise. Provisions set forth in sections 63-3038, 63-3039, 63-3042 through 63-3065A, 63-3069, 63-3071, 63-3072, 63-3075, 63-3076 and 63-3077, Idaho Code, which deal with deficiency, collection, enforcement, refund and review procedures, shall apply and be available to the commission and personal representative, to the extent they are not in conflict with the provisions of this chapter. Said sections shall be considered a part of this chapter and wherever proceedings are defined as income tax proceedings, they shall, as applied to this chapter, be described as estate tax proceedings.

14-413.Distribution of receipts. The commission shall collect all taxes and moneys that may be due under this act, and remit such moneys to the state treasurer. Such moneys shall be distributed as follows: (1) Ten percent (10%) of such moneys shall be distributed into a suspense account for payment to the county treasurer of the county in which venue for probate and administration lies, pursuant to section 15-3-201, Idaho Code, regardless of whether such probate or administration was, in fact, instituted. Such moneys shall be paid by the commission to the appropriate counties not less than quarterly, and shall be credited to the county current expense fund. (2) An amount of money shall be distributed to the state refund account sufficient to pay current refund claims. All refunds authorized by the commission to be paid shall be paid through the state refund account, and those moneys are hereby continuously appropriated for that purpose. Such refunds shall be authorized for the purpose of repaying overpayments made under the transfer and inheritance tax act, for the purpose of repaying any other erroneous receipts under such tax, for the purpose of repaying any tax, penalty, or interest illegally assessed or collected, or for the purpose of paying any judgment rendered against the commission under the terms and provisions of this act. (3) The balance remaining after distributing the amounts in subsections (1) and (2) of this section shall be distributed to the general fund of the state of Idaho.

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