1999 Legislation
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HOUSE BILL NO. 134 – Estate tax, incl Idaho estate tax


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Daily Data Tracking History

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
      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

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 134

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT

 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


 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-


 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 / Fiscal Impact

                         STATEMENT OF PURPOSE


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

                         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