Full Text of HB0255 96th General Assembly
HB0255eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Estate and Generation-Skipping | 5 |
| Transfer Tax Act is amended by changing Section 2 as follows:
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| (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
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| Sec. 2. Definitions.
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| "Federal estate tax" means the tax due to the United States | 9 |
| with respect
to a taxable transfer under Chapter 11 of the | 10 |
| Internal Revenue Code.
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| "Federal generation-skipping transfer tax" means the tax | 12 |
| due to the
United States with respect to a taxable transfer | 13 |
| under Chapter 13 of the
Internal Revenue Code.
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| "Federal return" means the federal estate tax return with | 15 |
| respect to the
federal estate tax and means the federal | 16 |
| generation-skipping transfer tax
return
with respect to the | 17 |
| federal generation-skipping transfer tax.
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| "Federal transfer tax" means the federal estate tax or the | 19 |
| federal
generation-skipping transfer tax.
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| "Illinois estate tax" means the tax due to this State with | 21 |
| respect to a
taxable transfer.
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| "Illinois generation-skipping transfer tax" means the tax | 23 |
| due to this State
with respect to a taxable transfer that gives |
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| rise to a federal
generation-skipping transfer tax.
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| "Illinois transfer tax" means the Illinois estate tax or | 3 |
| the Illinois
generation-skipping transfer tax.
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| "Internal Revenue Code" means, unless otherwise provided, | 5 |
| the Internal
Revenue Code of 1986, as
amended from time to | 6 |
| time.
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| "Non-resident trust" means a trust that is not a resident | 8 |
| of this State
for purposes of the Illinois Income Tax Act, as | 9 |
| amended from time to time.
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| "Person" means and includes any individual, trust, estate, | 11 |
| partnership,
association, company or corporation.
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| "Qualified heir" means a qualified heir as defined in | 13 |
| Section 2032A(e)(1)
of the Internal Revenue Code.
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| "Resident trust" means a trust that is a resident of this | 15 |
| State for
purposes of the Illinois Income Tax Act, as amended | 16 |
| from time to time.
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| "State" means any state, territory or possession of the | 18 |
| United States and
the District of Columbia.
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| "State tax credit" means:
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| (a) For persons dying on or after January 1, 2003 and
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| through December 31, 2005, an amount
equal
to the full credit | 22 |
| calculable under Section 2011 or Section 2604 of the
Internal | 23 |
| Revenue
Code as the credit would have been computed and allowed | 24 |
| under the Internal
Revenue
Code as in effect on December 31, | 25 |
| 2001, without the reduction in the State
Death Tax
Credit as | 26 |
| provided in Section 2011(b)(2) or the termination of the State |
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| Death
Tax Credit
as provided in Section 2011(f) as enacted by | 2 |
| the Economic Growth and Tax Relief
Reconciliation Act of 2001, | 3 |
| but recognizing the increased applicable exclusion
amount
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| through December 31, 2005.
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| (b) For persons dying after December 31, 2005 and on or | 6 |
| before December 31,
2009, an amount equal to the full
credit
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| calculable under Section 2011 or 2604 of the Internal Revenue | 8 |
| Code as the
credit would
have been computed and allowed under | 9 |
| the Internal Revenue Code as in effect on
December 31, 2001, | 10 |
| without the reduction in the State Death Tax Credit as
provided | 11 |
| in
Section 2011(b)(2) or the termination of the State Death Tax | 12 |
| Credit as provided
in
Section 2011(f) as enacted by the | 13 |
| Economic Growth and Tax Relief Reconciliation
Act of
2001, but | 14 |
| recognizing the exclusion amount of only $2,000,000 , and with | 15 |
| reduction to the adjusted taxable estate for any qualified | 16 |
| terminable interest property election as defined in subsection | 17 |
| (b-1) of this Section .
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| (b-1) The person required to file the Illinois return may | 19 |
| elect on a timely filed Illinois return a marital deduction for | 20 |
| qualified terminable interest property under Section | 21 |
| 2056(b)(7) of the Internal Revenue Code for purposes of the | 22 |
| Illinois estate tax that is separate and independent of any | 23 |
| qualified terminable interest property election for federal | 24 |
| estate tax purposes. For purposes of the Illinois estate tax, | 25 |
| the inclusion of property in the gross estate of a surviving | 26 |
| spouse is the same as under Section 2044 of the Internal |
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| Revenue Code. | 2 |
| In the case of any trust for which a State or federal | 3 |
| qualified terminable interest property election is made, the | 4 |
| trustee may not retain non-income producing assets for more | 5 |
| than a reasonable amount of time without the consent of the | 6 |
| surviving spouse. | 7 |
| (c) For persons dying after December 31, 2009,
the credit | 8 |
| for state tax allowable under Section
2011 or Section 2604 of | 9 |
| the Internal Revenue Code.
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| "Taxable transfer" means an event that gives rise to a | 11 |
| state tax credit,
including any credit as a result of the | 12 |
| imposition of an
additional tax under Section 2032A(c) of the | 13 |
| Internal Revenue Code.
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| "Transferee" means a transferee within the meaning of | 15 |
| Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | 16 |
| Code.
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| "Transferred property" means:
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| (1) With respect to a taxable transfer occurring at the | 19 |
| death of an
individual, the
deceased individual's gross | 20 |
| estate as defined in Section 2031 of the
Internal Revenue | 21 |
| Code.
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| (2) With respect to a taxable transfer occurring as a | 23 |
| result of a
taxable termination as defined in Section | 24 |
| 2612(a) of the Internal Revenue Code,
the taxable amount | 25 |
| determined under Section 2622(a) of the Internal Revenue
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| Code.
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| (3) With respect to a taxable transfer occurring as a | 2 |
| result of a
taxable distribution as defined in Section | 3 |
| 2612(b) of the Internal Revenue Code,
the taxable amount | 4 |
| determined under Section 2621(a) of the Internal Revenue
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| Code.
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| (4) With respect to an event which causes the | 7 |
| imposition of an
additional estate tax under Section | 8 |
| 2032A(c) of the Internal Revenue Code,
the
qualified real | 9 |
| property that was disposed of or which ceased to be used | 10 |
| for
the qualified use, within the meaning of Section | 11 |
| 2032A(c)(1) of the Internal
Revenue Code.
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| "Trust" includes a trust as defined in Section 2652(b)(1) | 13 |
| of the Internal
Revenue Code.
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| (Source: P.A. 93-30, eff. 6-20-03.)
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| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law. |
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