HB 1920 -
By Representative Condotta
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 83.100.020 and 2005 c 516 s 2 are each amended to
read as follows:
As used in this chapter:)) The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Decedent" means a deceased individual;
(2) "Department" means the department of revenue, the director of that department, or any employee of the department exercising authority lawfully delegated to him by the director;
(3) "Federal return" means any tax return required by chapter 11 of the Internal Revenue Code;
(4) "Federal tax" means a tax under chapter 11 of the Internal Revenue Code;
(5) "Gross estate" means "gross estate" as defined and used in section 2031 of the Internal Revenue Code;
(6) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state, or other governmental unit or subdivision or agency, department, or instrumentality thereof;
(7) "Person required to file the federal return" means any person required to file a return required by chapter 11 of the Internal Revenue Code, such as the personal representative of an estate;
(8) "Property" means property included in the gross estate;
(9) "Resident" means a decedent who was domiciled in Washington at time of death;
(10) "Taxpayer" means a person upon whom tax is imposed under this chapter, including an estate or a person liable for tax under RCW 83.100.120;
(11) "Transfer" means "transfer" as used in section 2001 of the Internal Revenue Code. However, "transfer" does not include a qualified heir disposing of an interest in property qualifying for a deduction under RCW 83.100.046 or ceasing to use the property for farming purposes;
(12) "Internal Revenue Code" means((
, for the purposes of this
chapter and RCW 83.110.010,)) the United States Internal Revenue Code
of 1986, as amended or renumbered as of January 1, 2005;
(13)(a) "Washington taxable estate" means the federal taxable estate, less: ((
(a))) (i) One million five hundred thousand dollars
for decedents dying before January 1, 2006; and (( (b))) (ii) two
million dollars for decedents dying on or after January 1, 2006; and
(( (c))) (iii) the amount of any deduction allowed under RCW 83.100.046;
(b) Beginning in calendar year 2014 and through calendar year 2016, the amount specified in (a)(ii) of this subsection must be increased by an additional one million dollars each year; and
(14) "Federal taxable estate" means the taxable estate as determined under chapter 11 of the Internal Revenue Code without regard to: (a) The termination of the federal estate tax under section 2210 of the Internal Revenue Code or any other provision of law, and (b) the deduction for state estate, inheritance, legacy, or succession taxes allowable under section 2058 of the Internal Revenue Code.
Sec. 2 RCW 83.100.040 and 2010 c 106 s 234 are each amended to
read as follows:
(1) Until January 1, 2017, a tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington. For the purposes of this section, any intangible property owned by a resident is located in Washington. The tax authorized under this subsection (1) may not be imposed on or after January 1, 2017.
(2)(a) Except as provided in (b) of this subsection, the amount of tax is the amount provided in the following table:
If Washington Taxable
The amount of Tax Equals
Of Washington Taxable Estate Value Greater than
|Estate is at least||But Less Than||Initial Tax Amount||Plus Tax Rate %|
Correct the title.
EFFECT: Phases out the Washington estate tax by increasing the exclusion amount by $1 million over 3 years, with complete termination of the tax in calendar year 2017.