H3059 — An Act promoting estate tax fairness

Summary

An Act promoting estate tax fairness

Bill Text

• Full text Current

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill repeals Chapter 65A and modifies Chapter 65C regarding excise taxes on estates and adjusts the tax exemption threshold.

• Chapter 65A

  Chapter 65A of the General Laws is hereby repealed.

  Chapter 65A is completely eliminated from the laws.

• Chapter 65C, Section 2A

  section 2A → Section 2A. (a) An excise tax is hereby imposed upon the transfer of the estate of each person dying on or after January 1, 1997 who, at the time of death, was a resident. Section 3 shall not apply for the purposes of computing the tax imposed by this section. The excise tax shall be computed in accordance with the following rate schedule table:- Federal Gross Estate Rate of Tax Not over $2,000,000 None Over $2,000,000 but not over $2,500,000 10% Over $2,500,000 but not over $3,000,000 11% Over $3,000,000 but not over $3,500,000 12% Over $3,500,000 but not over $4,000,000 13% Over $4,000,000 but not over $4,500,000 14% Over $4,500,000 but not over $5,000,000 15% Over $5,000,000 but not over $5,500,000 16% Over $5,500,000 but not over $6,000,000 17% Over $6,000,000 but not over $6,500,000 18% Over $6,500,000 but not over $7,000,000 19% Over $7,000,000 but not over $7,500,000 20% Over $7,500,000 but not over $8,000,000 $21% Over $8,000,000 but not over $8,500,000 22% Over $8,500,000 but not over $9,000,000 23% Over $9,000,000 but not over $9,500,000 24% Over $9,500,000 but not over $10,000,00 25% Over $10,000,000 30% (b) An excise tax is hereby imposed upon the transfer of real property situated in the commonwealth and upon tangible personal property having an actual situs in this commonwealth of every person who at the time of their death was not a resident. The amount of this excise tax shall be calculated pursuant to the rate schedule in subsection (a). (c) The estates of decedents dying on or after July 1, 2023 shall not be required to pay any excise tax under this section if the value of the federal gross estate is not more than $2,000,000.

  Section 2A is added with a new structure for excise taxes including specific thresholds and rates.

• Chapter 65C, Section 2A

  The estates of decedents dying on or after July 1, 2023 shall not be required to pay any excise tax under this section if the value of the federal gross estate is not more than $2,000,000.

  A tax exemption is established for estates valued at $2,000,000 or less for decedents who die on or after July 1, 2023.

• This act shall take effect for taxable years beginning on or after January 1, 2025.

  The new tax provisions will be effective starting for the tax year 2025.

Sponsors

• Mike Connolly · Primary

Subjects