BILL REQ. #:  H-1130.1 

Read first time 01/27/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to aligning Washington's estate tax to the federal estate tax; amending RCW 83.100.020; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 83.100.020 and 2005 c 516 s 2 are each amended to read as follows:
     As used in this chapter:
     (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 83.110A.010, the United States Internal Revenue Code of 1986, as amended or renumbered as of January 1, 2005;
     (13) "Washington taxable estate" means the federal taxable estate, less: (a) One million five hundred thousand dollars for decedents dying before January 1, 2006; ((and)) (b) two million dollars for decedents dying on or after January 1, 2006((; and (c))), and before the effective date of this section; (c) five million dollars for decedents dying on or after the effective date of this section; and (d) the amount of any deduction allowed under RCW 83.100.046; 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.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.