Full Text of SB0689 101st General Assembly
SB0689eng 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Estate and Generation-Skipping | 5 | | Transfer Tax Act is amended by changing Sections 2, 3, and 4 as | 6 | | follows:
| 7 | | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| 8 | | Sec. 2. Definitions.
| 9 | | "Federal estate tax" means the tax due to the United States | 10 | | with respect
to a taxable transfer under Chapter 11 of the | 11 | | Internal Revenue Code.
| 12 | | "Federal generation-skipping transfer tax" means the tax | 13 | | due to the
United States with respect to a taxable transfer | 14 | | under Chapter 13 of the
Internal Revenue Code.
| 15 | | "Federal return" means the federal estate tax return with | 16 | | respect to the
federal estate tax and means the federal | 17 | | generation-skipping transfer tax
return
with respect to the | 18 | | federal generation-skipping transfer tax.
| 19 | | "Federal transfer tax" means the federal estate tax or the | 20 | | federal
generation-skipping transfer tax.
| 21 | | "Illinois estate tax" means the tax due to this State with | 22 | | respect to a
taxable transfer.
| 23 | | "Illinois generation-skipping transfer tax" means the tax |
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| 1 | | due to this State
with respect to a taxable transfer that gives | 2 | | rise to a federal
generation-skipping transfer tax.
| 3 | | "Illinois transfer tax" means the Illinois estate tax or | 4 | | the Illinois
generation-skipping transfer tax.
| 5 | | "Internal Revenue Code" means, unless otherwise provided, | 6 | | the Internal
Revenue Code of 1986, as
amended from time to | 7 | | time.
| 8 | | "Non-resident trust" means a trust that is not a resident | 9 | | of this State
for purposes of the Illinois Income Tax Act, as | 10 | | amended from time to time.
| 11 | | "Person" means and includes any individual, trust, estate, | 12 | | partnership,
association, company or corporation.
| 13 | | "Qualified heir" means a qualified heir as defined in | 14 | | Section 2032A(e)(1)
of the Internal Revenue Code.
| 15 | | "Resident trust" means a trust that is a resident of this | 16 | | State for
purposes of the Illinois Income Tax Act, as amended | 17 | | from time to time.
| 18 | | "State" means any state, territory or possession of the | 19 | | United States and
the District of Columbia.
| 20 | | "State tax credit" means:
| 21 | | (a) For persons dying on or after January 1, 2003 and
| 22 | | through December 31, 2005, an amount
equal
to the full credit | 23 | | calculable under Section 2011 or Section 2604 of the
Internal | 24 | | Revenue
Code as the credit would have been computed and allowed | 25 | | under the Internal
Revenue
Code as in effect on December 31, | 26 | | 2001, without the reduction in the State
Death Tax
Credit as |
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| 1 | | provided in Section 2011(b)(2) or the termination of the State | 2 | | Death
Tax Credit
as provided in Section 2011(f) as enacted by | 3 | | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | 4 | | but recognizing the increased applicable exclusion
amount
| 5 | | through December 31, 2005.
| 6 | | (b) For persons dying after December 31, 2005 and on or | 7 | | before December 31,
2009, and for persons dying after December | 8 | | 31, 2010 and prior to January 1, 2021 , an amount equal to the | 9 | | full
credit
calculable under Section 2011 or 2604 of the | 10 | | Internal Revenue Code as the
credit would
have been computed | 11 | | and allowed under the Internal Revenue Code as in effect on
| 12 | | December 31, 2001, without the reduction in the State Death Tax | 13 | | Credit as
provided in
Section 2011(b)(2) or the termination of | 14 | | the State Death Tax Credit as provided
in
Section 2011(f) as | 15 | | enacted by the Economic Growth and Tax Relief Reconciliation
| 16 | | Act of
2001, but recognizing the exclusion amount of only (i) | 17 | | $2,000,000 for persons dying prior to January 1, 2012, (ii) | 18 | | $3,500,000 for persons dying on or after January 1, 2012 and | 19 | | prior to January 1, 2013, and (iii) $4,000,000 for persons | 20 | | dying on or after January 1, 2013, and with reduction to the | 21 | | adjusted taxable estate for any qualified terminable interest | 22 | | property election as defined in subsection (b-1) of this | 23 | | Section.
| 24 | | (b-1) The person required to file the Illinois return may | 25 | | elect on a timely filed Illinois return a marital deduction for | 26 | | qualified terminable interest property under Section |
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| 1 | | 2056(b)(7) of the Internal Revenue Code for purposes of the | 2 | | Illinois estate tax that is separate and independent of any | 3 | | qualified terminable interest property election for federal | 4 | | estate tax purposes. For purposes of the Illinois estate tax, | 5 | | the inclusion of property in the gross estate of a surviving | 6 | | spouse is the same as under Section 2044 of the Internal | 7 | | Revenue Code. | 8 | | In the case of any trust for which a State or federal | 9 | | qualified terminable interest property election is made, the | 10 | | trustee may not retain non-income producing assets for more | 11 | | than a reasonable amount of time without the consent of the | 12 | | surviving spouse.
| 13 | | "Taxable transfer" means an event that gives rise to a | 14 | | state tax credit,
including any credit as a result of the | 15 | | imposition of an
additional tax under Section 2032A(c) of the | 16 | | Internal Revenue Code.
| 17 | | "Transferee" means a transferee within the meaning of | 18 | | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | 19 | | Code.
| 20 | | "Transferred property" means:
| 21 | | (1) With respect to a taxable transfer occurring at the | 22 | | death of an
individual, the
deceased individual's gross | 23 | | estate as defined in Section 2031 of the
Internal Revenue | 24 | | Code.
| 25 | | (2) With respect to a taxable transfer occurring as a | 26 | | result of a
taxable termination as defined in Section |
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| 1 | | 2612(a) of the Internal Revenue Code,
the taxable amount | 2 | | determined under Section 2622(a) of the Internal Revenue
| 3 | | Code.
| 4 | | (3) With respect to a taxable transfer occurring as a | 5 | | result of a
taxable distribution as defined in Section | 6 | | 2612(b) of the Internal Revenue Code,
the taxable amount | 7 | | determined under Section 2621(a) of the Internal Revenue
| 8 | | Code.
| 9 | | (4) With respect to an event which causes the | 10 | | imposition of an
additional estate tax under Section | 11 | | 2032A(c) of the Internal Revenue Code,
the
qualified real | 12 | | property that was disposed of or which ceased to be used | 13 | | for
the qualified use, within the meaning of Section | 14 | | 2032A(c)(1) of the Internal
Revenue Code.
| 15 | | "Trust" includes a trust as defined in Section 2652(b)(1) | 16 | | of the Internal
Revenue Code.
| 17 | | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11; | 18 | | 97-636, eff. 6-1-12 .)
| 19 | | (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
| 20 | | Sec. 3. Illinois estate tax.
| 21 | | (a) Imposition of Tax. An Illinois estate tax is imposed on | 22 | | every
taxable transfer
involving transferred
property having a | 23 | | tax situs within the State of Illinois.
| 24 | | (b) Amount of tax. On estates of persons dying before | 25 | | January 1, 2003, the amount of the Illinois estate tax shall be |
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| 1 | | the state
tax credit, as defined in Section 2 of this Act, with | 2 | | respect to the taxable
transfer
reduced by the lesser of:
| 3 | | (1) the amount of the state tax credit paid to any | 4 | | other state or states;
and
| 5 | | (2) the amount determined by multiplying the maximum | 6 | | state tax
credit allowable with respect to the taxable | 7 | | transfer
by the percentage which the gross
value of the | 8 | | transferred property not having a tax situs in Illinois | 9 | | bears
to the gross value of the total transferred property. | 10 | | (c) On estates of persons dying on or after January 1, 2003 | 11 | | and prior to January 1, 2021 , the amount of the Illinois estate | 12 | | tax shall be the state
tax credit, as defined in Section 2 of | 13 | | this Act, reduced by the amount determined by multiplying the | 14 | | state tax
credit with respect to the taxable transfer
by the | 15 | | percentage which the gross
value of the transferred property | 16 | | not having a tax situs in Illinois bears
to the gross value of | 17 | | the total transferred property.
| 18 | | (d) No tax shall be imposed under this Act for persons | 19 | | dying on or after January 1, 2021. | 20 | | (Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
| 21 | | (35 ILCS 405/4) (from Ch. 120, par. 405A-4)
| 22 | | Sec. 4. Illinois generation-skipping transfer tax.
| 23 | | (a) Imposition of tax. An Illinois generation-skipping | 24 | | transfer tax is
imposed on every taxable transfer resulting in | 25 | | federal generation-skipping
transfer tax involving transferred |
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| 1 | | property having a tax situs within the
State of Illinois.
| 2 | | (b) Amount of tax. The amount of the Illinois | 3 | | generation-skipping transfer
tax shall be the maximum state tax | 4 | | credit allowable with respect to the
taxable transfer, reduced | 5 | | by the lesser of:
| 6 | | (1) the amount of the state tax credit paid to any | 7 | | other state or states; and
| 8 | | (2) the amount determined by multiplying the maximum | 9 | | state tax credit
allowable with respect to the taxable | 10 | | transfer by the percentage which the
gross value of the | 11 | | transferred property not having a tax situs in Illinois
| 12 | | bears to the gross value of the total transferred property.
| 13 | | (c) No tax shall be imposed under this Act for transfers | 14 | | occurring on or after January 1, 2021. | 15 | | (Source: P.A. 86-737.)
| 16 | | Section 99. Effective date. This Act takes effect on | 17 | | January 1, 2021, but does not take effect at all unless Senate | 18 | | Joint Resolution Constitutional Amendment No. 1 of the 101st | 19 | | General Assembly is approved by the voters prior to that date.
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