HOUSE BILL REPORT

SSB 6395

BYSenate Committee on Law & Justice (originally sponsored by Senators Nelson, Talmadge and Newhouse)

Correcting obsolete inheritance tax references.

House Committe on Judiciary

Majority Report:  Do pass.  (17)

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

House Staff:Kristen Lichtenberg (786-7623)

                  Regina Jones (786-7191)

AS PASSED HOUSE MARCH 2, 1990

BACKGROUND:

In 1982, Washington eliminated the inheritance tax and replaced it with estate and transfer taxes.  Some references to the now- obsolete inheritance tax and Inheritance Tax Division remain in the RCW.  Sections of Title 23A RCW, relating to the transfer of shares between spouses, were accidentally deleted from Title 23B RCW, which replaces Title 23A RCW on July 1, 1990.

SUMMARY:

References to the now-obsolete inheritance tax, Inheritance Tax Division of the Department of Revenue, and inheritance and federal death tax are deleted.  The inadvertently deleted sections of Title 23A RCW are added to Chapter 11.02 RCW, part of the Probate and Trust Code. An inheritance tax release is no longer necessary to transfer shares of a deceased spouse.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Mike Carrico, Chairperson, Washington State Bar Association Tax Section, Estate and Gift Tax Committee.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The section reinstating provisions regarding transfer of shares between spouses aids those who wish to transfer community property.

House Committee - Testimony Against:      None.