BILL REQ. #:  H-0762.1 

Read first time 01/31/2007.   Referred to Committee on Finance.

     AN ACT Relating to creating an estate tax exemption for certain property held by qualified family-owned businesses; and adding a new section to chapter 83.100 RCW.

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

NEW SECTION.  Sec. 1   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 for the value of qualified family-owned business interests of the decedent. This deduction applies only if 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 RCW 83.100.046(2) and the decedent was at the time of his or her death a citizen or resident of the United States. Only property in the federal taxable estate and not deductible under RCW 83.100.046 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 26 U.S.C. section 2057(e) of the federal internal revenue code as it exists on January 1, 2007.
     (ii) "Qualified heir" has the same meaning as in 26 U.S.C. section 2057(i) of the federal internal revenue code as it exists on January 1, 2007.