WSR 99-07-133

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed March 24, 1999, 11:39 a.m. ]

Subject of Possible Rule Making: Chapter 458-57 WAC.

Adoption of the following new rules in chapter 458-57 WAC, State of Washington Estate and Transfer Tax Reform Act: WAC 458-57-005 Nature of estate tax, definitions, 458-57-015 Valuation of property, property subject to estate tax, how to calculate the tax, 458-57-025 Determining the tax liability of nonresidents, 458-57-035 Washington estate tax return to be filed--Penalty for late filing--Interest on late payments--Waiver or cancellation of penalty--Application of payment, and 458-57-045 Administration of the tax--Releases, amended returns, refunds, heirs of escheat estates.

Repeal of the following rules in chapter 458-57 WAC: 458-57-510 Scope of rules, 458-57-520 Nature of estate tax, 458-57-530 Property subject to estate tax, 458-57-540 Residents--Tax imposed, 458-57-550 Valuation, 458-57-560 Imposition of tax, 458-57-570 Tax returns to be filed, 458-57-575 Waiver or cancellation of penalties, 458-57-580 Formula, 458-57-590 Property "located in" Washington, 458-57-600 Reciprocity exemption, 458-57-610 Releases, 458-57-620 Amended returns--Final determination, 458-57-630, Administration--Rules, 458-57-640 Escheat estates--Heirs--How located and proof, 458-57-650 Interest and penalties, and 458-57-660 Refunds.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 83.100.200.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The department anticipates replacing the existing seventeen rules in chapter 458-57 WAC with five new rules. These new rules will provide the information in a more concise and logical manner, will update the information provided in the current rules, and will incorporate the following changes in the law:

Chapter 64, Laws of 1988, which changed the statutory authority for adopting rules from RCW 83.100.100 to 83.100.200;

Chapter 149, Laws of 1996, and chapter 145, Laws of 1997, which changed the interest rates and interest calculations that apply to the estate tax program.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Internal Revenue Service administers the federal regulations concerning the federal estate tax. Washington's estate tax program coordinates with and generally complements the federal program. Washington's estate tax liability is limited to the credit provided in the federal statutes for estate tax liabilities imposed by the states. The department's rules coordinates with federal regulations by referencing pertinent sections of the Internal Revenue Code when explaining a taxpayer's potential liability for Washington's estate tax.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Pat Moses, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 902-7111, fax (360) 664-0693, e-mail PatM@dor.wa.gov.

Location and Date of Public Meeting: Evergreen Plaza Building, 711 Capitol Way, 2nd Floor Compliance Conference Room, Olympia, WA, on April 27th, 1999, at 1:30 p.m.

Assistance for Persons with Disabilities: Contact Ginny Dale by April 16, 1999, TDD 1-800-451-7985 or (360) 586-0721.

March 24, 1999

Claire Hesselholt, Rules Manager

Legislation and Policy Division

Washington State Code Reviser's Office