1920 AMH COND H2449.3

HB 1920  - H AMD449
     By Representative Condotta

SCOPE AND OBJECT 04/16/2013

     On page 2, line 19, after "The" strike "following"

     On page 3, beginning on line 11, after "code" strike all material through "property" on line 13

     On page 3, beginning on line 20, strike all of subsection (13) and insert the following:


     "(13)(a) "Washington taxable estate" means the federal taxable estate, less: (((a))) (i) One million five hundred thousand dollars for decedents dying before January 1, 2006; and (((b))) (ii) two million dollars for decedents dying on or after January 1, 2006; and (((c))) (iii) the amount of any deduction allowed under RCW 83.100.046; ((and))
     (b) Beginning in calendar year 2014 and through calendar year 2016, the amount specified in (a)(ii) of this subsection must be increased by an additional one million dollars each year.

     Beginning on page 4, line 1, strike all of sections 3 through 9 and insert the following:

"Sec. 3   RCW 83.100.040 and 2010 c 106 s 234 are each amended to read as follows:
     (1) Until January 1, 2017, a tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington. For the purposes of this section, any intangible property owned by a resident is located in Washington. The tax authorized under this subsection (1) may not be imposed on or after January 1, 2017.
     (2)(a) Except as provided in (b) of this subsection, the amount of tax is the amount provided in the following table:



If Washington Taxable

The amount of Tax Equals
Of Washington Taxable Estate Value Greater than
Estate is at leastBut Less ThanInitial Tax AmountPlus Tax Rate %
$0$1,000,000$010.00%$0
$1,000,000$2,000,000$100,00014.00%$1,000,000
$2,000,000$3,000,000$240,00015.00%$2,000,000
$3,000,000$4,000,000$390,00016.00%$3,000,000
$4,000,000$6,000,000$550,00017.00%$4,000,000
$6,000,000$7,000,000$890,00018.00%$6,000,000
$7,000,000$9,000,000$1,070,00018.50%$7,000,000
$9,000,000$1,440,00019.00%$9,000,000


     (b) If any property in the decedent's estate is located outside of Washington, the amount of tax is the amount determined in (a) of this subsection multiplied by a fraction. The numerator of the fraction is the value of the property located in Washington. The denominator of the fraction is the value of the decedent's gross estate. Property qualifying for a deduction under RCW 83.100.046 must be excluded from the numerator and denominator of the fraction.
     (3) The tax imposed under this section is a stand-alone estate tax that incorporates only those provisions of the internal revenue code as amended or renumbered as of January 1, 2005, that do not conflict with the provisions of this chapter. The tax imposed under this chapter is independent of any federal estate tax obligation and is not affected by termination of the federal estate tax."

     Correct the title.

EFFECT:  Phases out the Washington estate tax by increasing the exclusion amount by $1 million over 3 years, with complete termination of the tax in calendar year 2017.

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