This bill changes the Minnesota general estate tax exclusion to reflect the federal exclusion amount of $5 million, adjusted for inflation.  The bill is effective for decedents dying after December 31, 2012.

Section 1 removes the requirement for filing an estate tax return for federal gross estates exceeding $1 million.  Under this bill, if a taxpayer is required to file a federal estate tax return, a Minnesota return is also required to be filed.

Section 2 updates the reference to the Internal Revenue Code for Minnesota estate tax purposes, and removes the estate tax exclusion for qualified small business property and qualified farm property. 

Section 3 provides references to the Internal Revenue Code for purposes of tying the Minnesota estate tax exclusion amount to the federal amount of $5 million.  Because that amount is adjusted for inflation, the current federal exclusion is $5.12 million.  Under this bill, the Minnesota exclusion would also be adjusted for inflation in the same amount.  This section also removes the estate tax exclusion for qualified small business property and qualified farm property in calculating the tax amount due.

Section 4 repeals the subdivisions relating to the qualified small business and qualified farm property estate tax exclusion.

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