HOUSE BILL REPORT

SB 6391

BYSenators Nelson, Talmadge and Newhouse

Correcting internal revenue code references in the estate and transfer tax statutes.

House Committe on Judiciary

Majority Report:  Do pass.  (18)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Forner, Hargrove, Inslee, P. King, R. Meyers, Moyer, H. Myers, Schmidt, Scott, D. Sommers, Tate and Wineberry.

House Staff:Regina Jones (786-7191)

AS PASSED HOUSE MARCH 2, 1990

BACKGROUND:

Washington's estate tax and probate statutes contain a number of references to the United States Internal Revenue Code of 1986. The Internal Revenue Code and its regulations are frequently amended.  In an effort to incorporate these amendments into Washington estate tax and probate law, chapters 83.100 and 11.108 RCW refer to the Internal Revenue Code "as it is amended from time to time."  The constitutionality of this practice was called into question by a decision of the Washington State Supreme Court in State of Washington v. Reader's Digest.

SUMMARY:

References in chapter 83.100 RCW on estate and transfer tax to the United States Internal Revenue Code of 1986 and its chapters and regulations are references to the Code, the chapters and the regulations in effect on the effective date of this act.

References in chapter 11.108 RCW on trust gift distribution to the United States Revenue Code of 1986 are references to the Code in effect on the effective date of this act.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Michael D. Carrico, Washington State Bar Association Tax Section.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This is temporary solution to the ongoing problem of properly referencing amendments to the Internal Revenue Code and its regulations.  The bar is continuing to consider alternatives and is seeking a long-term solution.

House Committee - Testimony Against:      None.