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S.F. No. 16 - Single estate tax rate and exclusion amount
 
Author: Senator Charles W. Wiger
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: January 13, 2015



 

This bill removes the lower thresholds and phase-in of the excludable amount of the Minnesota taxable estate to establish one tax rate and threshold amount.  The bill makes other changes in the estate tax chapter to remove references to the qualified small business and qualified farm property subtraction, which is no longer applicable to the Minnesota estate tax given the proposed change to the threshold amount.
 

Section

Provision

1

Strikes language no longer necessary with the repeal of the qualified small business and farm property subtractions in section 3.
 

2

Strikes the amounts of the Minnesota taxable estate brackets and corresponding tax rates.  For estates of decedents dying in 2015 and thereafter, the first $5 million of the Minnesota taxable estate would not be subject to tax.  The value of the estate over $5 million would be taxed at 16 percent. 
 

3

Repeals various provisions relating to the qualified small business and qualified farm property subtractions.  Effective for decedents dying in 2015 and after.  The repealed provisions include:

  • Filing requirements for recapture tax returns and returns by qualified heirs;

  • Due dates for recapture tax returns and payment;

  • The qualified small business and qualified farm property subtractions, which are no longer applicable given the proposed $5 million general exemption; and

  • The recapture tax that applies if a qualified heir disposes of qualified small business or farm property or the property otherwise ceases to qualify for the subtraction prior to the end of the three-year period after the decedent’s death. 

 

 
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