Illinois General Assembly - Full Text of SB0689
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Full Text of SB0689  101st General Assembly

SB0689sam001 101ST GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 4/30/2019

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 689

2    AMENDMENT NO. ______. Amend Senate Bill 689 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Estate and Generation-Skipping
5Transfer Tax Act is amended by changing Sections 2, 3, and 4 as
6follows:
 
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
10with respect to a taxable transfer under Chapter 11 of the
11Internal Revenue Code.
12    "Federal generation-skipping transfer tax" means the tax
13due to the United States with respect to a taxable transfer
14under Chapter 13 of the Internal Revenue Code.
15    "Federal return" means the federal estate tax return with
16respect to the federal estate tax and means the federal

 

 

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1generation-skipping transfer tax return with respect to the
2federal generation-skipping transfer tax.
3    "Federal transfer tax" means the federal estate tax or the
4federal generation-skipping transfer tax.
5    "Illinois estate tax" means the tax due to this State with
6respect to a taxable transfer.
7    "Illinois generation-skipping transfer tax" means the tax
8due to this State with respect to a taxable transfer that gives
9rise to a federal generation-skipping transfer tax.
10    "Illinois transfer tax" means the Illinois estate tax or
11the Illinois generation-skipping transfer tax.
12    "Internal Revenue Code" means, unless otherwise provided,
13the Internal Revenue Code of 1986, as amended from time to
14time.
15    "Non-resident trust" means a trust that is not a resident
16of this State for purposes of the Illinois Income Tax Act, as
17amended from time to time.
18    "Person" means and includes any individual, trust, estate,
19partnership, association, company or corporation.
20    "Qualified heir" means a qualified heir as defined in
21Section 2032A(e)(1) of the Internal Revenue Code.
22    "Resident trust" means a trust that is a resident of this
23State for purposes of the Illinois Income Tax Act, as amended
24from time to time.
25    "State" means any state, territory or possession of the
26United States and the District of Columbia.

 

 

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1    "State tax credit" means:
2    (a) For persons dying on or after January 1, 2003 and
3through December 31, 2005, an amount equal to the full credit
4calculable under Section 2011 or Section 2604 of the Internal
5Revenue Code as the credit would have been computed and allowed
6under the Internal Revenue Code as in effect on December 31,
72001, without the reduction in the State Death Tax Credit as
8provided in Section 2011(b)(2) or the termination of the State
9Death Tax Credit as provided in Section 2011(f) as enacted by
10the Economic Growth and Tax Relief Reconciliation Act of 2001,
11but recognizing the increased applicable exclusion amount
12through December 31, 2005.
13    (b) For persons dying after December 31, 2005 and on or
14before December 31, 2009, and for persons dying after December
1531, 2010 and prior to January 1, 2021, an amount equal to the
16full credit calculable under Section 2011 or 2604 of the
17Internal Revenue Code as the credit would have been computed
18and allowed under the Internal Revenue Code as in effect on
19December 31, 2001, without the reduction in the State Death Tax
20Credit as provided in Section 2011(b)(2) or the termination of
21the State Death Tax Credit as provided in Section 2011(f) as
22enacted by the Economic Growth and Tax Relief Reconciliation
23Act of 2001, but recognizing the exclusion amount of only (i)
24$2,000,000 for persons dying prior to January 1, 2012, (ii)
25$3,500,000 for persons dying on or after January 1, 2012 and
26prior to January 1, 2013, and (iii) $4,000,000 for persons

 

 

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1dying on or after January 1, 2013, and with reduction to the
2adjusted taxable estate for any qualified terminable interest
3property election as defined in subsection (b-1) of this
4Section.
5    (b-1) The person required to file the Illinois return may
6elect on a timely filed Illinois return a marital deduction for
7qualified terminable interest property under Section
82056(b)(7) of the Internal Revenue Code for purposes of the
9Illinois estate tax that is separate and independent of any
10qualified terminable interest property election for federal
11estate tax purposes. For purposes of the Illinois estate tax,
12the inclusion of property in the gross estate of a surviving
13spouse is the same as under Section 2044 of the Internal
14Revenue Code.
15    In the case of any trust for which a State or federal
16qualified terminable interest property election is made, the
17trustee may not retain non-income producing assets for more
18than a reasonable amount of time without the consent of the
19surviving spouse.
20    "Taxable transfer" means an event that gives rise to a
21state tax credit, including any credit as a result of the
22imposition of an additional tax under Section 2032A(c) of the
23Internal Revenue Code.
24    "Transferee" means a transferee within the meaning of
25Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
26Code.

 

 

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1    "Transferred property" means:
2        (1) With respect to a taxable transfer occurring at the
3    death of an individual, the deceased individual's gross
4    estate as defined in Section 2031 of the Internal Revenue
5    Code.
6        (2) With respect to a taxable transfer occurring as a
7    result of a taxable termination as defined in Section
8    2612(a) of the Internal Revenue Code, the taxable amount
9    determined under Section 2622(a) of the Internal Revenue
10    Code.
11        (3) With respect to a taxable transfer occurring as a
12    result of a taxable distribution as defined in Section
13    2612(b) of the Internal Revenue Code, the taxable amount
14    determined under Section 2621(a) of the Internal Revenue
15    Code.
16        (4) With respect to an event which causes the
17    imposition of an additional estate tax under Section
18    2032A(c) of the Internal Revenue Code, the qualified real
19    property that was disposed of or which ceased to be used
20    for the qualified use, within the meaning of Section
21    2032A(c)(1) of the Internal Revenue Code.
22    "Trust" includes a trust as defined in Section 2652(b)(1)
23of the Internal Revenue Code.
24(Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
2597-636, eff. 6-1-12.)
 

 

 

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1    (35 ILCS 405/3)  (from Ch. 120, par. 405A-3)
2    Sec. 3. Illinois estate tax.
3    (a) Imposition of Tax. An Illinois estate tax is imposed on
4every taxable transfer involving transferred property having a
5tax situs within the State of Illinois.
6    (b) Amount of tax. On estates of persons dying before
7January 1, 2003, the amount of the Illinois estate tax shall be
8the state tax credit, as defined in Section 2 of this Act, with
9respect to the taxable transfer reduced by the lesser of:
10        (1) the amount of the state tax credit paid to any
11    other state or states; and
12        (2) the amount determined by multiplying the maximum
13    state tax credit allowable with respect to the taxable
14    transfer by the percentage which the gross value of the
15    transferred property not having a tax situs in Illinois
16    bears to the gross value of the total transferred property.
17    (c) On estates of persons dying on or after January 1, 2003
18and prior to January 1, 2021, the amount of the Illinois estate
19tax shall be the state tax credit, as defined in Section 2 of
20this Act, reduced by the amount determined by multiplying the
21state tax credit with respect to the taxable transfer by the
22percentage which the gross value of the transferred property
23not having a tax situs in Illinois bears to the gross value of
24the total transferred property.
25    (d) No tax shall be imposed under this Act for persons
26dying on or after January 1, 2021.

 

 

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1(Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
 
2    (35 ILCS 405/4)  (from Ch. 120, par. 405A-4)
3    Sec. 4. Illinois generation-skipping transfer tax.
4    (a) Imposition of tax. An Illinois generation-skipping
5transfer tax is imposed on every taxable transfer resulting in
6federal generation-skipping transfer tax involving transferred
7property having a tax situs within the State of Illinois.
8    (b) Amount of tax. The amount of the Illinois
9generation-skipping transfer tax shall be the maximum state tax
10credit allowable with respect to the taxable transfer, reduced
11by the lesser of:
12        (1) the amount of the state tax credit paid to any
13    other state or states; and
14        (2) the amount determined by multiplying the maximum
15    state tax credit allowable with respect to the taxable
16    transfer by the percentage which the gross value of the
17    transferred property not having a tax situs in Illinois
18    bears to the gross value of the total transferred property.
19    (c) No tax shall be imposed under this Act for transfers
20occurring on or after January 1, 2021.
21(Source: P.A. 86-737.)
 
22    Section 99. Effective date. This Act takes effect on
23January 1, 2021, but does not take effect at all unless Senate
24Joint Resolution Constitutional Amendment No. 1 of the 101st

 

 

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1General Assembly is approved by the voters prior to that
2date.".