WSR 08-13-063

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed June 13, 2008, 3:43 p.m. ]

Subject of Possible Rule Making: WAC 458-57-105 Nature of estate tax, definitions and 458-57-115 Valuation of property, property subject to estate tax, and how to calculate the tax.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 83.100.200.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 458-57-105 explains the nature of Washington state's estate tax imposed by chapter 83.100 RCW. It also provides definitions of terms that are used throughout chapter 458-57 WAC. WAC 458-57-115 provides guidance to help taxpayers prepare their return and pay the correct amount of Washington state estate tax. It explains the steps for determining the tax and provides examples of how the tax is calculated. The department is considering an amendment to these rules to clarify when an amount included in the federal taxable estate pursuant to IRC Sec. 2044 (inclusions of amounts for which a federal QTIP election was previously made) is subtracted out when calculating the Washington taxable estate. The Washington taxable estate is only reduced by the amount included in the federal taxable estate pursuant to IRC Sec. 2044 when it is received from a predeceased spouse that died on or after May 17, 2005.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of possible rule changes is available for viewing and printing on our web site at http://dor.wa.gov/content/FindALawOrRule/RuleMaking/agenda.aspx. Written comments on and/or requests for copies of the rule may be directed to Mark Bohe, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail markbohe@dor.wa.gov, phone (360) 570-6133, fax (360) 586-0127.

Public Meeting Location: Capital Plaza Building, 4th Floor L&P Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on July 22, 2008, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Martha Thomas no later than ten days before the meeting date, TTY 1-800-451-7985 or (360) 725-7497.

June 13, 2008

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office