Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF333 Compare Versions

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

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; estate; providing for portability of the deceased spousal unused
3	3	1.3 exclusion amount; amending Minnesota Statutes 2022, sections 289A.10,
4	4	1.4 subdivision 1; 291.016, subdivision 3; 291.03, subdivision 1, by adding a
5	5	1.5 subdivision.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2022, section 289A.10, subdivision 1, is amended to read:
8	8	1.8 Subdivision 1.Return required.(a) In the case of a decedent who has an interest in
9	9	1.9property with a situs in Minnesota, the personal representative must submit a Minnesota
10	10	1.10estate tax return to the commissioner, on a form prescribed by the commissioner, if:
11	11	1.11 (1) a federal estate tax return is required to be filed; or
12	12	1.12 (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
13	13	1.13section 2001(b) of the Internal Revenue Code, made within three years of the date of the
14	14	1.14decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
15	15	1.15estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
16	16	1.16$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
17	17	1.17in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of
18	18	1.18decedents dying in 2020 and thereafter.
19	19	1.19 (b) The return must contain a computation of the Minnesota estate tax due. The return
20	20	1.20must be signed by the personal representative.
21	21	1.21 (c) The return may include an election, as provided in section 291.03, subdivision 1e,
22	22	1.22to allow a decedent's surviving spouse to take into account the decedent's deceased spousal
23	23	1.23unused exclusion amount.
24	24	1Section 1.
25	25	23-01355 as introduced01/04/23 REVISOR EAP/HL
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 333NINETY-THIRD SESSION
29	29	(SENATE AUTHORS: DAHMS, Frentz, Weber, Coleman and Drazkowski)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading01/17/2023
32	32	Referred to Taxes 2.1 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
33	33	2.230, 2022.
34	34	2.3 Sec. 2. Minnesota Statutes 2022, section 291.016, subdivision 3, is amended to read:
35	35	2.4 Subd. 3.Subtraction.(a) For estates of decedents dying after December 31, 2016, A
36	36	2.5subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
37	37	2.6 (1) the an exclusion amount for the year of death under paragraph (b) of $3,000,000;
38	38	2.7and
39	39	2.8 (2) the lesser of:
40	40	2.9 (i) (2) the value of qualified small business property under section 291.03, subdivision
41	41	2.109, and the value of qualified farm property under section 291.03, subdivision 10; or, up to
42	42	2.11$2,000,000.
43	43	2.12 (ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
44	44	2.13 (b) The following exclusion amounts apply for the year of death:
45	45	2.14 (1) $2,100,000 for decedents dying in 2017;
46	46	2.15 (2) $2,400,000 for decedents dying in 2018;
47	47	2.16 (3) $2,700,000 for decedents dying in 2019; and
48	48	2.17 (4) $3,000,000 for decedents dying in 2020 and thereafter.
49	49	2.18 (b) In the case of a decedent that is a surviving spouse there is an additional subtraction
50	50	2.19allowed in computing the Minnesota taxable estate, a deceased spousal unused exclusion
51	51	2.20amount, which is equal to the lesser of:
52	52	2.21 (1) $3,000,000; or
53	53	2.22 (2) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last
54	54	2.23predeceased spouse of the decedent, but not including in the taxable estate property described
55	55	2.24in section 291.03, subdivisions 9 and 10, but in no case less than zero.
56	56	2.25 (c) The subtraction under this subdivision must not reduce the Minnesota taxable estate
57	57	2.26to less than zero.
58	58	2.27 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
59	59	2.2830, 2022.
60	60	2Sec. 2.
61	61	23-01355 as introduced01/04/23 REVISOR EAP/HL 3.1 Sec. 3. Minnesota Statutes 2022, section 291.03, subdivision 1, is amended to read:
62	62	3.2 Subdivision 1.Tax amount.The tax imposed must be computed by applying to the
63	63	3.3Minnesota taxable estate the following schedule of rates and then multiplying the resulting
64	64	3.4amount multiplied by a fraction, not greater than one, the numerator of which is the value
65	65	3.5of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2,
66	66	3.6clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate
67	67	3.7plus the value of gifts under section 291.016, subdivision 2, clause (3):
68	68	3.8 (a) For estates of decedents dying in 2017:
69	69	Rate of Tax3.9 Amount of Minnesota Taxable Estate
70	70	12 percent3.10Not over $5,100,000
71	71	$612,000 plus 12.8 percent of the excess over
72	72	3.12 $5,100,000
73	73	3.11Over $5,100,000 but not over $7,100,000
74	74	$868,000 plus 13.6 percent of the excess over
75	75	3.14 $7,100,000
76	76	3.13Over $7,100,000 but not over $8,100,000
77	77	$1,004,000 plus 14.4 percent of the excess
78	78	3.16 over $8,100,000
79	79	3.15Over $8,100,000 but not over $9,100,000
80	80	$1,148,000 plus 15.2 percent of the excess
81	81	3.18 over $9,100,000
82	82	3.17Over $9,100,000 but not over $10,100,000
83	83	$1,300,000 plus 16 percent of the excess over
84	84	3.20 $10,100,000
85	85	3.19Over $10,100,000
86	86	3.21 (b) For estates of decedents dying in 2018 and thereafter:
87	87	Rate of Tax3.22 Amount of Minnesota Taxable Estate
88	88	13 percent3.23Not over $7,100,000
89	89	$923,000 plus 13.6 percent of the excess over
90	90	3.25 $7,100,000
91	91	3.24Over $7,100,000 but not over $8,100,000
92	92	$1,059,000 plus 14.4 percent of the excess
93	93	3.27 over $8,100,000
94	94	3.26Over $8,100,000 but not over $9,100,000
95	95	$1,203,000 plus 15.2 percent of the excess
96	96	3.29 over $9,100,000
97	97	3.28Over $9,100,000 but not over $10,100,000
98	98	$1,355,000 plus 16 percent of the excess over
99	99	3.31 $10,100,000
100	100	3.30Over $10,100,000
101	101	3.32 EFFECTIVE DATE.This section is effective the day following final enactment.
102	102	3.33 Sec. 4. Minnesota Statutes 2022, section 291.03, is amended by adding a subdivision to
103	103	3.34read:
104	104	3.35 Subd. 1e.Election of portability of deceased spousal unused exclusion amounts;
105	105	3.36election irrevocable; deemed elections.(a) A personal representative of a decedent's estate
106	106	3.37may elect, on a return required under section 289A.10, subdivision 1, to allow a decedent's
107	107	3.38surviving spouse to take into account the decedent's deceased spousal unused exclusion
108	108	3.39amount, as provided in section 291.016, subdivision 3, paragraph (b).
109	109	3Sec. 4.
110	110	23-01355 as introduced01/04/23 REVISOR EAP/HL 4.1 (b) In order for a surviving spouse to take into account the decedent's deceased spousal
111	111	4.2unused exclusion amount as provided in section 291.016, subdivision 3, paragraph (b), a
112	112	4.3personal representative of a decedent's estate must file a return and make the portability
113	113	4.4election under paragraph (a). The return is subject to the same provisions as a return required
114	114	4.5under section 289A.10, subdivision 1.
115	115	4.6 (c) An election under paragraph (a) or (b) is irrevocable. The personal representative of
116	116	4.7a decedent's estate must state affirmatively on the return that the decedent's estate is electing
117	117	4.8portability. The commissioner may prescribe the form of the election on the return.
118	118	4.9 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
119	119	4.1030, 2022.
120	120	4Sec. 4.
121	121	23-01355 as introduced01/04/23 REVISOR EAP/HL