6096 AMS ZARE CARL 020

SB 6096 - S AMD 613 TO S AMD (S3422.1)

By Senators Zarelli and Johnson

NOT ADOPTED 4/19/05

On page 3, line 8, strike "section 4" and insert "section 4 or 5"

One page 4, line 13,strike "section 4" and insert "section 4 or 5"

On page 9, after line 11, insert the following:

"NEW SECTION. Sec. 5. A new section is added to chapter 83.100 RCW to read as follows:

  (1) For the purposes of determining the Washington taxable estate, a deduction is allowed from the federal taxable estate of up to one million dollars for the adjusted value of qualified family-owned business interests of the decedent determined as provided in section 2057(d) of the Internal Revenue Code. This deduction applies only if the requirements of section 2057(b)(1)(A), (C), and (D) of the Internal Revenue Code are met and the qualified family-owned business interest is acquired by any qualified heir from, or passed to any qualified heir from, the decedent, within the meaning of section 2032A(e)(9) of the Internal Revenue Code. Only property in the federal taxable estate and not deductible under section 4 of this act may be deducted under this subsection. For the purposes of determining the deduction amount, the value of property is its value as used to determine the value of the gross estate. For purposes of this subsection, the following definitions apply:

(i) "Qualified family-owned business interest" has the same meaning as in section 2057(e) of the Internal Revenue Code."

(ii) “Qualified heir” has the same meaning as in section 2057(i) of the Internal Revenue Code.

(2)The one million dollar maximum deduction in this section shall grow each year by the previous calendar year's annual average consumer price index, using the official current base, compiled by the bureau of labor statistics, United States department of labor for the state of Washington. If the bureau of labor statistics develops more than one consumer price index for areas within the state, the index covering the greatest number of people, covering areas exclusively within the boundaries of the state, and including all items shall be used for the index in this section."

Renumber the sections consecutively and correct any internal references accordingly.

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EFFECT: Providing for a deduction of up to $1 million from the gross estate for the value of a qualified family-owned business interest of the decedent. The $1 million maximum deduction shall grow each year by the Seattle consumer price index.