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S1031................................................by JUDICIARY AND RULES
ESTATE TAX - Amends existing law to provide references to trusts and other
dispositive instruments in the apportionment of estate taxes.
01/25 Senate intro - 1st rdg - to printing
01/26 Rpt prt - to Jud
02/05 Rpt out - rec d/p - to 2nd rdg
02/06 2nd rdg - to 3rd rdg
02/07 3rd rdg - PASSED - 29-0-5(1 vacant)
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Ingram, Keough, King-Barrutia, Lodge, Noh,
Richardson, Risch, Schroeder, Sorensen, Stegner, Stennett, Wheeler,
Whitworth, Williams,
NAYS -- None
Absent and excused -- Cameron, Ipsen, Lee, Sandy, Thorne
Vacant -- Dist. #4
Floor Sponsor -- Sorensen
Title apvd - to House
02/08 House intro - 1st rdg - to Jud
03/20 Rpt out - rec d/p - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
03/26 3rd rdg - PASSED - 66-0-4
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow, Cuddy,
Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
Gagner, Gould, Hadley, Hammond, Hansen, Harwood, Henbest(Farley),
Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz, Lake,
Langford, Loertscher, Mader, Marley, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pearce, Pomeroy, Raybould, Ridinger, Roberts,
Robison, Sali, Schaefer, Shepherd, Smith, Smylie, Stevenson, Stone,
Tilman, Trail, Wood, Young, Mr. Speaker
NAYS -- None
Absent and excused -- Bradford, Pischner, Sellman, Wheeler
Floor Sponsor -- Clark
Title apvd - to Senate
03/28 To enrol
Rpt enrol - Pres signed
03/29 Sp signed - to Governor
03/31 Governor signed
Session Law Chapter 262
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1031
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO THE UNIFORM PROBATE CODE; AMENDING SECTION 15-3-916, IDAHO CODE,
3 TO PROVIDE REFERENCES TO TRUSTS AND OTHER DISPOSITIVE INSTRUMENTS IN THE
4 APPORTIONMENT OF ESTATE TAXES.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 15-3-916, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 15-3-916. APPORTIONMENT OF ESTATE TAXES. (a) For purposes of this sec-
9 tion:
10 (1) "Estate" means the gross estate of a decedent as determined for the
11 purpose of federal estate tax;
12 (2) "Person" means any individual, partnership, association, joint stock
13 company, corporation, government, political subdivision, governmental
14 agency, or local governmental agency;
15 (3) "Person interested in the estate" means any person entitled to
16 receive, or who has received, from a decedent or by reason of the death of
17 a decedent any property or interest therein included in the decedent's
18 estate. It includes a personal representative, conservator, and trustee;
19 (4) "State" means any state, territory, or possession of the United
20 States, the District of Columbia, and the Commonwealth of Puerto Rico;
21 (5) "Tax" means the federal estate tax and the Idaho estate tax and
22 interest and penalties imposed in addition to the tax;
23 (6) "Fiduciary" means personal representative or trustee.
24 (b) Unless the will, trust or other dispositive instrument otherwise pro-
25 vides, the tax shall be apportioned among all persons interested in the
26 estate. The apportionment is to be made in the proportion that the value of
27 the interest of each person interested in the estate bears to the total value
28 of the interests of all persons interested in the estate. The values used in
29 determining the tax are to be used for that purpose. If the decedent's will,
30 trust or other dispositive instrument directs a method of apportionment of tax
31 different from the method described in this code, the method described in the
32 will, trust or other dispositive instrument controls.
33 (c) (1) The court in which venue lies for the administration of the
34 estate of a decedent, on petition for the purpose may determine the appor-
35 tionment of the tax.
36 (2) If the court finds that it is inequitable to apportion interest and
37 penalties in the manner provided in subsection (b) of this section,
38 because of special circumstances, it may direct apportionment thereof in
39 the manner it finds equitable.
40 (3) If the court finds that the assessment of penalties and interest
41 assessed in relation to the tax is due to delay caused by the negligence
42 of the fiduciary, the court may charge him with the amount of the assessed
43 penalties and interest.
2
1 (4) In any action to recover from any person interested in the estate the
2 amount of the tax apportioned to the person in accordance with this code
3 the determination of the court in respect thereto shall be prima facie
4 correct.
5 (d) (1) The personal representative or other person in possession of the
6 property of the decedent required to pay the tax may withhold from any
7 property distributable to any person interested in the estate, upon its
8 distribution to him, the amount of tax attributable to his interest. If
9 the property in possession of the personal representative or other person
10 required to pay the tax and distributable to any person interested in the
11 estate is insufficient to satisfy the proportionate amount of the tax
12 determined to be due from the person, the personal representative or other
13 person required to pay the tax may recover the deficiency from the person
14 interested in the estate. If the property is not in the possession of the
15 personal representative or the other person required to pay the tax, the
16 personal representative or the other person required to pay the tax may
17 recover from any person interested in the estate the amount of the tax
18 apportioned to the person in accordance with this act.
19 (2) If property held by the personal representative is distributed prior
20 to final apportionment of the tax, the distributee shall provide a bond or
21 other security for the apportionment liability in the form and amount pre-
22 scribed by the personal representative.
23 (e) (1) In making an apportionment, allowances shall be made for any
24 exemptions granted, any classification made of persons interested in the
25 estate and for any deductions and credits allowed by the law imposing the
26 tax.
27 (2) Any exemption or deduction allowed by reason of the relationship of
28 any person to the decedent or by reason of the purposes of the gift inures
29 to the benefit of the person bearing such relationship or receiving the
30 gift; but if an interest is subject to a prior present interest which is
31 not allowable as a deduction, the tax apportionable against the present
32 interest shall be paid from principal.
33 (3) Any deduction for property previously taxed and any credit for gift
34 taxes or death taxes of a foreign country paid by the decedent or his
35 estate inures to the proportionate benefit of all persons liable to appor-
36 tionment.
37 (4) Any credit for inheritance, succession or estate taxes or taxes in
38 the nature thereof applicable to property or interests includable in the
39 estate, inures to the benefit of the persons or interests chargeable with
40 the payment thereof to the extent proportionately that the credit reduces
41 the tax.
42 (5) To the extent that property passing to or in trust for a surviving
43 spouse or any charitable, public or similar gift or devise is not an
44 allowable deduction for purposes of the tax solely by reason of an inheri-
45 tance tax or other death tax imposed upon and deductible from the prop-
46 erty, the property is not included in the computation provided for in sub-
47 section (b) of this section, and to that extent no apportionment is made
48 against the property. The sentence immediately preceding does not apply to
49 any case if the result would be to deprive the estate of a deduction
50 otherwise allowable under section 2053(d) of the Internal Revenue Code of
51 1954 [U.S.C., tit. 26, sec. 2053(d)], as amended, of the United States,
52 relating to deduction for state death taxes on transfers for public, char-
53 itable, or religious uses.
54 (f) No interest in income and no estate for years or for life or other
55 temporary interest in any property or fund is subject to apportionment as
3
1 between the temporary interest and the remainder. The tax on the temporary
2 interest and the tax, if any, on the remainder is chargeable against the cor-
3 pus of the property or funds subject to the temporary interest and remainder.
4 (g) Neither the personal representative nor other person required to pay
5 the tax is under any duty to institute any action to recover from any person
6 interested in the estate the amount of the tax apportioned to the person until
7 the expiration of the three (3) months next following final determination of
8 the tax. A personal representative or other person required to pay the tax who
9 institutes the action within a reasonable time after the three (3) months'
10 period is not subject to any liability or surcharge because any portion of the
11 tax apportioned to any person interested in the estate was collectable at a
12 time following the death of the decedent but thereafter became uncollectable.
13 If the personal representative or other person required to pay the tax cannot
14 collect from any person interested in the estate the amount of the tax appor-
15 tioned to the person, the amount not recoverable shall be equitably appor-
16 tioned among the other persons interested in the estate who are subject to
17 apportionment.
18 (h) A personal representative acting in another state or a person
19 required to pay the tax domiciled in another state may institute an action in
20 the courts of this state and may recover a proportionate amount of the federal
21 estate tax, of an estate tax payable to another state or of a death duty due
22 by a decedent's estate to another state, from a person interested in the
23 estate who is either domiciled in this state or who owns property in this
24 state subject to attachment or execution. For the purposes of the action the
25 determination of apportionment by the court having jurisdiction of the admin-
26 istration of the decedent's estate in the other state is prima facie correct.
STATEMENT OF PURPOSE
RS 10714
This bill amends existing Idaho Code Section 15-3-916, relating to
apportionment of estate taxes, to allow trusts or other dispositive
instruments to provide for apportionment of taxes other than as
specified by the statute for 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 North Eighth Street
Boise, Idaho 83702-4297
Telephone: 208-336-9880
FAX: 208-336-9882
STATEMENT OF PURPOSE/FISCAL NOTE S103