H.B. 352

1

INHERITANCE TAX ACT AMENDMENTS
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Brent H. Goodfellow
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Inheritance Tax Act to change the manner in which the act relies
9 on the federal estate tax.
10 Highlighted Provisions:
11 This bill:
12 . provides that if the federal estate tax is in effect at the death of a decedent, the
13 inheritance tax shall be calculated using certain provisions of federal law in effect
14 on January 1, 2001, and other provisions of federal law in effect on the date of the
15 decedent's death;
16 . provides that if the federal estate tax is not in effect at the death of a decedent, the
17 inheritance tax shall be calculated using certain provisions of federal law in effect
18 on January 1, 2001, and other provisions of federal law in effect immediately
19 preceding the repeal of the federal estate tax; and
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 59-11-102, as renumbered and amended by Chapter 2, Laws of Utah 1987

28 ENACTS:
29 59-11-102.5, Utah Code Annotated 1953
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 59-11-102 is amended to read:
33 59-11-102. Definitions.
34 As used in this chapter:
35 (1) "Decedent" means a deceased natural person.
36 (2) "Federal credit" means the maximum amount of the credit for estate death taxes
37 allowed by Section 2011 in respect to a decedent's taxable estate.
38 (3) "Gross estate" [means "gross estate"] is as defined, subject to Section 59-11-102.5
39 in Section 2031 [of the United States], Internal Revenue Code [of 1954, as amended or
40 renumbered].
41 (4) "Nonresident" means a decedent who was domiciled outside of this state at the time
42 of death.
43 (5) "Other state" means any state in the United States other than this state, the District
44 of Columbia, or any possession or territory of the United States.
45 (6) "Person" includes any natural person, corporation, association, partnership, joint
46 venture, syndicate, estate, trust, or other entity under which business or other activities may be
47 conducted.
48 (7) "Personal representative" means the executor, administrator, or trustee of a
49 decedent's estate, or, if there is no executor, administrator, or trustee appointed, qualified, and
50 acting within this state, then any person in actual or constructive possession of any property of
51 the decedent.
52 (8) "Resident" means a decedent who was domiciled in this state at the time of death.
53 (9) "Section 2011" means, subject to Section 59-11-102.5 , Section 2011 [of the United
54 States], Internal Revenue Code [of 1954, as amended or renumbered].
55 (10) "Taxable estate" [means "taxable estate"] is as defined, subject to Section
56 59-11-102.5 , in Section 2051 [of the United States], Internal Revenue Code [of 1954, as
57 amended or renumbered].
58 (11) "Transfer" [means "transfer"] is as defined, subject to Section 59-11-102.5 , in

59 Section 2001 [of the United States], Internal Revenue Code [of 1954, as amended or
60 renumbered].
61 Section 2. Section 59-11-102.5 is enacted to read:
62 59-11-102.5. Effect of federal law changes.
63 (1) If the federal estate tax imposed by Section 2001, Internal Revenue Code, is in
64 effect on the date of the decedent's death, the tax under this chapter shall be determined using:
65 (a) the federal credit allowed by Section 2011 as it was in effect on January 1, 2001;
66 and
67 (b) other provisions of federal estate tax law, including the unified credit allowed
68 against the federal estate tax under Section 2010, Internal Revenue Code, as the provisions
69 were in effect on the date of the decedent's death.
70 (2) If the federal estate tax imposed by Section 2001, Internal Revenue Code, is not in
71 effect on the date of the decedent's death, the tax under this chapter shall be determined using:
72 (a) the federal credit allowed by Section 2011 as it was in effect on January 1, 2001;
73 and
74 (b) other provisions of federal estate tax law, including the unified credit allowed
75 against the federal estate tax under Section 2010, Internal Revenue Code, as the provisions
76 were in effect on the date immediately preceding the effective date of the repeal of the federal
77 estate tax imposed by Section 2001, Internal Revenue Code.




Legislative Review Note
as of 2-11-04 8:53 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel