BILL REQ. #:  S-2810.1 

Read first time 05/30/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to adjusting the applicable exclusion and tax rates on estate tax; and amending RCW 83.100.020 and 83.100.040.

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

Sec. 1   RCW 83.100.020 and 2013 c 23 s 341 are each amended to read as follows:
     ((As used in this chapter:
     (1))) The following definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1)(a) "Applicable exclusion amount" means:
     (i) One million five hundred thousand dollars for decedents dying before January 1, 2006;
     (ii) Two million dollars for estates of decedents dying on or after January 2006, and before January 1, 2015;
     (iii) Three million dollars for estates of decedents dying during the 2015 calendar year;
     (iv) Four million dollars for estates of decedents dying during the 2016 calendar year; and
     (v) For estates of decedents dying after December 31, 2016, the applicable exclusion amount equals the federal exclusion amount.
     (b) For purposes of this subsection "federal exclusion amount" means the estate's basic exclusion amount as determined under section 2010(c)(3) of the internal revenue code as existing on January 1, 2013.
     (2) "Decedent" means a deceased individual((;)).
     (((2))) (3) "Department" means the department of revenue, the director of that department, or any employee of the department exercising authority lawfully delegated to him or her by the director((;)).
     (((3))) (4) "Federal return" means any tax return required by chapter 11 of the internal revenue code((;)).
     (((4))) (5) "Federal tax" means a tax under chapter 11 of the internal revenue code((;)).
     (((5))) (6) "Gross estate" means "gross estate" as defined and used in section 2031 of the internal revenue code((;)).
     (((6))) (7) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state, or other governmental unit or subdivision or agency, department, or instrumentality thereof((;)).
     (((7))) (8) "Person required to file the federal return" means any person required to file a return required by chapter 11 of the internal revenue code, such as the personal representative of an estate((;)).
     (((8))) (9) "Property" means property included in the gross estate((;)).
     (((9))) (10) "Resident" means a decedent who was domiciled in Washington at time of death((;)).
     (((10))) (11) "Taxpayer" means a person upon whom tax is imposed under this chapter, including an estate or a person liable for tax under RCW 83.100.120((;)).
     (((11))) (12) "Transfer" means "transfer" as used in section 2001 of the internal revenue code. However, "transfer" does not include a qualified heir disposing of an interest in property qualifying for a deduction under RCW 83.100.046 or ceasing to use the property for farming purposes((;)).
     (((12))) (13) "Internal revenue code" means, for the purposes of this chapter and RCW 83.110.010, the United States internal revenue code of 1986, as amended or renumbered as of January 1, 2005((;)).
     (((13))) (14) "Washington taxable estate" means the federal taxable estate((, less: (a) One million five hundred thousand dollars for decedents dying before January 1, 2006; and (b) two million dollars for decedents dying on or after January 1, 2006; and (c))) less: (a) The applicable exclusion amount; (b) the amount of any deduction allowed under RCW 83.100.046; and (c) amounts allowed to be deducted from the Washington taxable estate under RCW 83.100.047.
     (((14))) (15) "Federal taxable estate" means the taxable estate as determined under chapter 11 of the internal revenue code without regard to: (a) The termination of the federal estate tax under section 2210 of the internal revenue code or any other provision of law, and (b) the deduction for state estate, inheritance, legacy, or succession taxes allowable under section 2058 of the internal revenue code.

Sec. 2   RCW 83.100.040 and 2010 c 106 s 234 are each amended to read as follows:
     (1) 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.
     (2)(a) Except as provided in (b) and (c) of this subsection, the amount of tax is the amount provided in the following table:

NEW SECTION.  Sec. 3   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.