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H0134...............................................by REVENUE AND TAXATION
ESTATE TAX - Amends existing law to include Idaho estate taxes in the
definition of tax for Idaho estate tax purposes.
01/29 House intro - 1st rdg - to printing
02/01 Rpt prt - to Rev/Tax
02/08 Rpt out - rec d/p - to 2nd rdg
02/09 2nd rdg - to 3rd rdg
02/10 3rd rdg - PASSED - 67-0-3
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Limbaugh,
Linford, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moyle,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Smith, Stevenson, Stoicheff, Stone, Tilman,
Tippets, Trail, Watson, Wheeler, Williams, Wood, Zimmermann,
Mr Speaker
NAYS -- None
Absent and excused -- Jones, Loertscher, Taylor
Floor Sponsor - Kempton
Title apvd - to Senate
02/11 Senate intro - 1st rdg - to Loc Gov
02/22 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - Ipsen
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/15 Pres signed
03/16 To Governor
03/18 Governor signed
Session Law Chapter 105
Effective: 07/01/99
H0134|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 134 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO APPORTIONMENT OF ESTATE TAXES; AMENDING SECTION 15-3-916, IDAHO 3 CODE, TO INCLUDE IDAHO ESTATE TAXES IN THE DEFINITION OF TAX. 4 Be It Enacted by the Legislature of the State of Idaho: 5 SECTION 1. That Section 15-3-916, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 15-3-916. APPORTIONMENT OF ESTATE TAXES. (a) For purposes of this sec- 8 tion: 9 (1) "Estate" means the gross estate of a decedent as determined for the 10 purpose of federal estate tax; 11 (2) "Person" means any individual, partnership, association, joint stock 12 company, corporation, government, political subdivision, governmental 13 agency, or local governmental agency; 14 (3) "Person interested in the estate" means any person entitled to 15 receive, or who has received, from a decedent or by reason of the death of 16 a decedent any property or interest therein included in the decedent's 17 estate. It includes a personal representative, conservator, and trustee; 18 (4) "State" means any state, territory, or possession of the United 19 States, the District of Columbia, and the Commonwealth of Puerto Rico; 20 (5) "Tax" means the federal estate tax and the Idaho estate tax 21 and interest and penalties imposed in addition to the tax; 22 (6) "Fiduciary" means personal representative or trustee. 23 (b) Unless the will otherwise provides, the tax shall be apportioned 24 among all persons interested in the estate. The apportionment is to be made in 25 the proportion that the value of the interest of each person interested in the 26 estate bears to the total value of the interests of all persons interested in 27 the estate. The values used in determining the tax are to be used for that 28 purpose. If the decedent's will directs a method of apportionment of tax dif- 29 ferent from the method described in this code, the method described in the 30 will controls. 31 (c) (1) The court in which venue lies for the administration of the 32 estate of a decedent, on petition for the purpose may determine the appor- 33 tionment of the tax. 34 (2) If the court finds that it is inequitable to apportion interest and 35 penalties in the manner provided in subsection (b) of this section, 36 because of special circumstances, it may direct apportionment thereof in 37 the manner it finds equitable. 38 (3) If the court finds that the assessment of penalties and interest 39 assessed in relation to the tax is due to delay caused by the negligence 40 of the fiduciary, the court may charge him with the amount of the assessed 41 penalties and interest. 42 (4) In any action to recover from any person interested in the estate the 43 amount of the tax apportioned to the person in accordance with this code 2 1 the determination of the court in respect thereto shall be prima facie 2 correct. 3 (d) (1) The personal representative or other person in possession of the 4 property of the decedent required to pay the tax may withhold from any 5 property distributable to any person interested in the estate, upon its 6 distribution to him, the amount of tax attributable to his interest. If 7 the property in possession of the personal representative or other person 8 required to pay the tax and distributable to any person interested in the 9 estate is insufficient to satisfy the proportionate amount of the tax 10 determined to be due from the person, the personal representative or other 11 person required to pay the tax may recover the deficiency from the person 12 interested in the estate. If the property is not in the possession of the 13 personal representative or the other person required to pay the tax, the 14 personal representative or the other person required to pay the tax may 15 recover from any person interested in the estate the amount of the tax 16 apportioned to the person in accordance with this act. 17 (2) If property held by the personal representative is distributed prior 18 to final apportionment of the tax, the distributee shall provide a bond or 19 other security for the apportionment liability in the form and amount pre- 20 scribed by the personal representative. 21 (e) (1) In making an apportionment, allowances shall be made for any 22 exemptions granted, any classification made of persons interested in the 23 estate and for any deductions and credits allowed by the law imposing the 24 tax. 25 (2) Any exemption or deduction allowed by reason of the relationship of 26 any person to the decedent or by reason of the purposes of the gift inures 27 to the benefit of the person bearing such relationship or receiving the 28 gift; but if an interest is subject to a prior present interest which is 29 not allowable as a deduction, the tax apportionable against the present 30 interest shall be paid from principal. 31 (3) Any deduction for property previously taxed and any credit for gift 32 taxes or death taxes of a foreign country paid by the decedent or his 33 estate inures to the proportionate benefit of all persons liable to appor- 34 tionment. 35 (4) Any credit for inheritance, succession or estate taxes or taxes in 36 the nature thereof applicable to property or interests includable in the 37 estate, inures to the benefit of the persons or interests chargeable with 38 the payment thereof to the extent proportionately that the credit reduces 39 the tax. 40 (5) To the extent that property passing to or in trust for a surviving 41 spouse or any charitable, public or similar gift or devise is not an 42 allowable deduction for purposes of the tax solely by reason of an inheri- 43 tance tax or other death tax imposed upon and deductible from the prop- 44 erty, the property is not included in the computation provided for in sub- 45 section (b) of this section, and to that extent no apportionment is made 46 against the property. The sentence immediately preceding does not apply to 47 any case if the result would be to deprive the estate of a deduction 48 otherwise allowable under section 2053(d) of the Internal Revenue Code of 49 1954 [U.S.C., tit. 26, sec. 2053(d)], as amended, of the United States, 50 relating to deduction for state death taxes on transfers for public, char- 51 itable, or religious uses. 52 (f) No interest in income and no estate for years or for life or other 53 temporary interest in any property or fund is subject to apportionment as 54 between the temporary interest and the remainder. The tax on the temporary 55 interest and the tax, if any, on the remainder is chargeable against the cor- 3 1 pus of the property or funds subject to the temporary interest and remainder. 2 (g) Neither the personal representative nor other person required to pay 3 the tax is under any duty to institute any action to recover from any person 4 interested in the estate the amount of the tax apportioned to the person until 5 the expiration of the three (3) months next following final determination of 6 the tax. A personal representative or other person required to pay the tax who 7 institutes the action within a reasonable time after the three (3) months' 8 period is not subject to any liability or surcharge because any portion of the 9 tax apportioned to any person interested in the estate was collectable at a 10 time following the death of the decedent but thereafter became uncollectable. 11 If the personal representative or other person required to pay the tax cannot 12 collect from any person interested in the estate the amount of the tax appor- 13 tioned to the person, the amount not recoverable shall be equitably appor- 14 tioned among the other persons interested in the estate who are subject to 15 apportionment. 16 (h) A personal representative acting in another state or a person 17 required to pay the tax domiciled in another state may institute an action in 18 the courts of this state and may recover a proportionate amount of the federal 19 estate tax, of an estate tax payable to another state or of a death duty due 20 by a decedent's estate to another state, from a person interested in the 21 estate who is either domiciled in this state or who owns property in this 22 state subject to attachment or execution. For the purposes of the action the 23 determination of apportionment by the court having jurisdiction of the admin- 24 istration of the decedent's estate in the other state is prima facie correct.
STATEMENT OF PURPOSE
RS08763
This bill amends existing Idaho Code Section 15-3-916, relating to
apportionment of estate taxes, to include Idaho estate taxes in its
definition of "tax". This corrects a technical oversight in the
original bill and conforms the language of the statute to actual
practice.
FISCAL NOTE
This bill is revenue neutral and will have no effect on
revenues or expenditures.
CONTACT: Robert L. Aldridge
1209 N. 8th St.
Boise, ID 83702-4297
Phone: 208/336-9880(office), 208/888-4668 (home)
Fax: 208/336-9882
e-mail: roberta@micron.net
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. 13