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| 2 | 2 | | SENATE DOCKET, NO. 1410 FILED ON: 1/16/2025 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 2088 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Bruce E. Tarr |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act relative to modernizing the estate tax. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :Bruce E. TarrFirst Essex and Middlesex 1 of 2 |
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| 16 | 16 | | SENATE DOCKET, NO. 1410 FILED ON: 1/16/2025 |
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| 17 | 17 | | SENATE . . . . . . . . . . . . . . No. 2088 |
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| 18 | 18 | | By Mr. Tarr, a petition (accompanied by bill, Senate, No. 2088) of Bruce E. Tarr for legislation |
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| 19 | 19 | | relative to modernizing the estate tax. Revenue. |
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| 20 | 20 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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| 21 | 21 | | SEE SENATE, NO. 1946 OF 2023-2024.] |
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| 22 | 22 | | The Commonwealth of Massachusetts |
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| 23 | 23 | | _______________ |
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| 24 | 24 | | In the One Hundred and Ninety-Fourth General Court |
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| 25 | 25 | | (2025-2026) |
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| 26 | 26 | | _______________ |
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| 27 | 27 | | An Act relative to modernizing the estate tax. |
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| 28 | 28 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 29 | 29 | | of the same, as follows: |
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| 30 | 30 | | 1 SECTION 1. Section 2A of chapter 65C of the General Laws, as so appearing, is hereby |
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| 31 | 31 | | 2amended by striking out subsection (a) and inserting in place the following subsection:- |
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| 32 | 32 | | 3 (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or |
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| 33 | 33 | | 4after January 1, 1997, who, at the time of death, was a resident of the commonwealth. The |
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| 34 | 34 | | 5amount of the tax shall be equal to the credit for state death taxes that would have been allowable |
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| 35 | 35 | | 6to a decedent’s estate as computed under Code section 2011, as in effect on December 31, 2000, |
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| 36 | 36 | | 7hereinafter referred to as the “credit”. In the event that the federal gross estate of a person |
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| 37 | 37 | | 8includes real or tangible personal property located outside of Massachusetts at the time of death, |
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| 38 | 38 | | 9the tax shall be reduced by an amount equal to the proportion of such allowable credit as the |
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| 39 | 39 | | 10value of said real or tangible personal property located outside of Massachusetts bears to the 2 of 2 |
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| 40 | 40 | | 11value of the entire federal gross estate wherever situated, as determined under Code section |
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| 41 | 41 | | 122011, as in effect on December 31, 2000. |
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| 42 | 42 | | 13 SECTION 2. Said section 2A of said chapter 65C, as so appearing, is hereby further |
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| 43 | 43 | | 14amended by adding the following subsections:- |
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| 44 | 44 | | 15 (f) Effective for the estates of decedents dying on or after July 1, 2024, for purposes of |
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| 45 | 45 | | 16computing the tax imposed by subsections (a) and (b), the credit shall be determined based on |
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| 46 | 46 | | 17the value of the federal taxable estate after such estate is reduced by $5,000,000. Estates of |
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| 47 | 47 | | 18decedents dying on or after July 1, 2022, are not required to pay any tax under subsections (a) |
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| 48 | 48 | | 19and (b) if the value of the federal taxable estate is $5,000,000 or less. For purposes of this |
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| 49 | 49 | | 20subsection, the federal taxable estate is the federal gross estate less any Qualified Conservation |
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| 50 | 50 | | 21Exclusion elected under Code section 2031(c), as in effect on December 31, 2000, and further |
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| 51 | 51 | | 22reduced by the deductions allowable by the Code, as in effect on December 31, 2000. |
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| 52 | 52 | | 23 (g) the amount in question for affected estates of decedents dying on or after July 1, 2024, |
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| 53 | 53 | | 24shall be adjusted annually to reflect the aggregate quarterly change in salaries and wages in the |
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| 54 | 54 | | 25commonwealth for the most recent 4 quarters as determined by the Bureau of Economic Analysis |
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| 55 | 55 | | 26in the United States Department of Commerce |
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| 56 | 56 | | 27 SECTION 3. Sections 1 and 2 shall take effect for the estates of decedents dying on or |
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| 57 | 57 | | 28after July 1, 2024. |
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