Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1857 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 916 FILED ON: 1/18/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1857
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Jason M. Lewis
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to the Massachusetts estate tax code.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Jason M. LewisFifth Middlesex 1 of 4
16	16	SENATE DOCKET, NO. 916 FILED ON: 1/18/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1857
18	18	By Mr. Lewis, a petition (accompanied by bill, Senate, No. 1857) of Jason M. Lewis for
19	19	legislation relative to the Massachusetts estate tax code. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1911 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act relative to the Massachusetts estate tax code.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 2A of chapter 65C of the General Laws, as appearing in the 2020
31	31	2Official Edition, is hereby amended by inserting, in line 2, after the figure “1997” the following
32	32	3words:-
33	33	4 and on or before December 31, 2023
34	34	5 SECTION 2. Said chapter 65C is hereby amended by inserting after section 2A the
35	35	6following new section:-
36	36	7 Section 2B. (a) For the purposes of this section, the following terms shall have the
37	37	8following meanings:- 2 of 4
38	38	9 “Adjusted taxable estate”, the sum of the taxable estate, as defined in section 2051 of the
39	39	10Code, and any taxable gifts, as defined in section 2503 of the Code, with a Massachusetts situs
40	40	11made by the decedent within 3 years of the date of death, less the exemption as determined under
41	41	12this subsection.
42	42	13 “Code”, the Internal Revenue Code of the United States, as amended and in effect on
43	43	14December 31, 2000, unless the context clearly indicates otherwise.
44	44	15 “CPI”, the consumer price index for any calendar year as defined in section 1 of the
45	45	16Code, as amended on January 1, 2005 and in effect for the calendar year.
46	46	17 “Exemption”, $1,000,000 for calendar years beginning on or after January 1, 2024 and
47	47	18before January 1, 2025. For calendar years beginning on or after January 1, 2023, the exemption
48	48	19shall be $1,000,000 increased by an amount equal to $1,000,000 multiplied by the percentage, if
49	49	20any, by which the CPI for the preceding calendar year exceeds the CPI for calendar year 2024. If
50	50	21the amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount
51	51	22shall be rounded to the nearest multiple of $10,000.
52	52	23 (b)(1) A tax is hereby imposed upon the transfer of the estate of each person dying on or
53	53	24after January 1, 2024 who, at the time of death, was a resident of the commonwealth in
54	54	25accordance with the following table:
55	55	26 If the adjusted taxable estate is: The Massachusetts estate tax shall be:
56	56	27 Over But not over
57	57	28 0 90,000 1.6% of the adjusted taxable estate
58	58	29 90,000 140,000 $1,440 plus 2.4% of the excess over $90,000 3 of 4
59	59	30 140,000 240,000 $2,640 plus 3.2% of the excess over $140,000
60	60	31 240,000 440,000 $5,840 plus 4% of the excess over $240,000
61	61	32 440,000 640,000 $13,840 plus 5% of the excess over $440,000
62	62	33 640,000 840,000 $23,840 plus 6% of the excess over $640,000
63	63	34 840,000 1,040,000 $35,840 plus 7% of the excess over $840,000
64	64	35 1,040,000 1,540,000$49,840 plus 8% of the excess over $1,040,000
65	65	36 1,540,000 2,040,000$89,840 plus 9% of the excess over $1,540,000
66	66	37 2,040,000 2,540,000$134,840 plus 10% of the excess over $2,040,000
67	67	38 2,540,000 3,040,000$184,840 plus 11% of the excess over $2,540,000
68	68	39 3,040,000 3,540,000$239,840 plus 12% of the excess over $3,040,000
69	69	40 3,540,000 4,040,000$299,840 plus 13% of the excess over $3,540,000
70	70	41 4,040,000 5,040,000$364,840 plus 14% of the excess over $4,040,000
71	71	42 5,040,000 6,040,000$504,840 plus 15% of the excess over $5,040,000
72	72	43 6,040,000 $654,840 plus 16% of the excess over $6,040,000
73	73	44 (2) A credit shall be allowed against the tax imposed under this subsection equal to the
74	74	45lesser of:
75	75	46 (i) the aggregate amount of all estate, inheritance, legacy and succession taxes actually
76	76	47paid to the several states of the United States, other than the commonwealth, in respect to any 4 of 4
77	77	48property owned by that decedent or subject to those taxes as part of or in connection with his
78	78	49estate; or
79	79	50 (ii) an amount equal to the proportion of the tax determined under paragraph (1) as the
80	80	51value of properties taxable by other states bears to the value of the entire federal gross estate
81	81	52wherever situated.
82	82	53 (c) A tax is hereby imposed upon the transfer of real property situated in this
83	83	54commonwealth and upon tangible personal property having an actual situs in this commonwealth
84	84	55of every person who at the time of his death was not a resident of the commonwealth. The
85	85	56amount of this tax is a sum equal to the proportion of the tax determined under paragraph (1) of
86	86	57subsection (b) which the value of Massachusetts real and tangible personal property taxed in this
87	87	58commonwealth subject to such tax bears to the value of the decedent’s total federal gross estate.
88	88	59 (d) Notwithstanding any other provision of law, the tax imposed by subsections (a) and
89	89	60(b) shall be computed upon the value of any property subject to a power of appointment which is
90	90	61includible in the federal gross estate, notwithstanding that a tax has been paid thereon pursuant to
91	91	62section 14 of chapter 65.
92	92	63 (e) For the purposes of computing the tax imposed by this section, the provisions of
93	93	64section 3 shall not apply.