Full Text of SB2818 93rd General Assembly
SB2818 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2818
Introduced 2/5/2004, by Peter J. Roskam SYNOPSIS AS INTRODUCED: |
|
35 ILCS 405/2 |
from Ch. 120, par. 405A-2 |
35 ILCS 405/3 |
from Ch. 120, par. 405A-3 |
35 ILCS 405/5 |
from Ch. 120, par. 405A-5 |
35 ILCS 405/6 |
from Ch. 120, par. 405A-6 |
35 ILCS 405/7 |
from Ch. 120, par. 405A-7 |
35 ILCS 405/8 |
from Ch. 120, par. 405A-8 |
35 ILCS 405/10 |
from Ch. 120, par. 405A-10 |
|
Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Restores the imposition and collection of the tax to its status prior to June 20, 2003 (the effective date of Public Act 93-30). Effective immediately.
|
| |
|
|
| FISCAL NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
SB2818 |
|
LRB093 19350 SJM 45086 b |
|
| 1 |
| AN ACT concerning taxes.
| 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, 5, 6, 7, | 6 |
| 8, and 10 as 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 that gives rise to a federal | 23 |
| estate tax .
| 24 |
| "Illinois generation-skipping transfer tax" means the tax | 25 |
| due to this State
with respect to a taxable transfer that gives | 26 |
| rise to a federal
generation-skipping transfer tax.
| 27 |
| "Illinois transfer tax" means the Illinois estate tax or | 28 |
| the Illinois
generation-skipping transfer tax.
| 29 |
| "Internal Revenue Code" means , unless otherwise provided,
| 30 |
| the Internal
Revenue Code of 1986, as
amended from time to | 31 |
| time.
| 32 |
| "Non-resident trust" means a trust that is not a resident |
|
|
|
SB2818 |
- 2 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| of this State
for purposes of the Illinois Income Tax Act, as | 2 |
| amended from time to time.
| 3 |
| "Person" means and includes any individual, trust, estate, | 4 |
| partnership,
association, company or corporation.
| 5 |
| "Qualified heir" means a qualified heir as defined in | 6 |
| Section 2032A(e)(1)
of the Internal Revenue Code.
| 7 |
| "Resident trust" means a trust that is a resident of this | 8 |
| State for
purposes of the Illinois Income Tax Act, as amended | 9 |
| from time to time.
| 10 |
| "State" means any state, territory or possession of the | 11 |
| United States and
the District of Columbia.
| 12 |
| "State tax credit" means:
| 13 |
| (a) For persons dying on or after January 1, 2003 and
| 14 |
| through the effective date of this amendatory Act of the 93rd | 15 |
| General Assembly
December 31, 2005 , an amount
equal
to the full | 16 |
| credit calculable under Section 2011 or Section 2604 of the
| 17 |
| Internal Revenue
Code as the credit would have been computed | 18 |
| and allowed under the Internal
Revenue
Code as in effect on | 19 |
| December 31, 2001, without the reduction in the State
Death Tax
| 20 |
| Credit as provided in Section 2011(b)(2) or the termination of | 21 |
| the State Death
Tax Credit
as provided in Section 2011(f) as | 22 |
| enacted by the Economic Growth and Tax Relief
Reconciliation | 23 |
| Act of 2001, but recognizing the increased applicable exclusion
| 24 |
| amount
through December 31, 2005.
| 25 |
| (b) (Blank).
For persons dying after December 31, 2005 and | 26 |
| on or before December 31,
2009, an amount equal to the full
| 27 |
| credit
calculable under Section 2011 or 2604 of the Internal | 28 |
| Revenue Code as the
credit would
have been computed and allowed | 29 |
| under the Internal Revenue Code as in effect on
December 31, | 30 |
| 2001, without the reduction in the State Death Tax Credit as
| 31 |
| provided in
Section 2011(b)(2) or the termination of the State | 32 |
| Death Tax Credit as provided
in
Section 2011(f) as enacted by | 33 |
| the Economic Growth and Tax Relief Reconciliation
Act of
2001, | 34 |
| but recognizing the exclusion amount of only $2,000,000.
| 35 |
| (c) For persons dying on or after the effective date of | 36 |
| this amendatory Act of the 93rd General Assembly
December 31, |
|
|
|
SB2818 |
- 3 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| 2009 ,
the credit for state tax allowable under Section
2011 or | 2 |
| Section 2604 of the Internal Revenue Code.
| 3 |
| "Taxable transfer" means an event that gives rise to a | 4 |
| state tax credit,
including any credit allowable as a result of | 5 |
| the imposition of an
additional tax under Section 2032A(c) of | 6 |
| the Internal Revenue Code.
| 7 |
| "Transferee" means a transferee within the meaning of | 8 |
| Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | 9 |
| Code.
| 10 |
| "Transferred property" means:
| 11 |
| (1) With respect to a taxable transfer occurring at the | 12 |
| death of an
individual that results in the imposition of | 13 |
| federal estate tax , the
deceased individual's gross estate | 14 |
| as defined in Section 2031 of the
Internal Revenue Code.
| 15 |
| (2) With respect to a taxable transfer occurring as a | 16 |
| result of a
taxable termination as defined in Section | 17 |
| 2612(a) of the Internal Revenue Code,
the taxable amount | 18 |
| determined under Section 2622(a) of the Internal Revenue
| 19 |
| Code.
| 20 |
| (3) With respect to a taxable transfer occurring as a | 21 |
| result of a
taxable distribution as defined in Section | 22 |
| 2612(b) of the Internal Revenue Code,
the taxable amount | 23 |
| determined under Section 2621(a) of the Internal Revenue
| 24 |
| Code.
| 25 |
| (4) With respect to an event which causes the | 26 |
| imposition of an
additional estate tax under Section | 27 |
| 2032A(c) of the Internal Revenue Code,
the
qualified real | 28 |
| property that was disposed of or which ceased to be used | 29 |
| for
the qualified use, within the meaning of Section | 30 |
| 2032A(c)(1) of the Internal
Revenue Code.
| 31 |
| "Trust" includes a trust as defined in Section 2652(b)(1) | 32 |
| of the Internal
Revenue Code.
| 33 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 34 |
| (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
| 35 |
| Sec. 3. Illinois estate tax.
|
|
|
|
SB2818 |
- 4 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| (a) Imposition of Tax. An Illinois estate tax is imposed on | 2 |
| every
taxable transfer
involving transferred
property having a | 3 |
| tax situs within the State of Illinois.
| 4 |
| (b) Amount of tax. The amount of the Illinois estate tax | 5 |
| shall be the maximum state
tax credit allowable
, as defined in | 6 |
| Section 2 of this Act, with respect to the taxable
transfer
| 7 |
| reduced by the lesser of:
| 8 |
| (1) the amount of the state tax credit paid to any | 9 |
| other state or states;
and
| 10 |
| (2) the amount determined by multiplying the maximum | 11 |
| state tax
credit allowable with respect to the taxable | 12 |
| transfer
by the percentage which the gross
value of the | 13 |
| transferred property not having a tax situs in Illinois | 14 |
| bears
to the gross value of the total transferred property.
| 15 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 16 |
| (35 ILCS 405/5) (from Ch. 120, par. 405A-5)
| 17 |
| Sec. 5. Determination of tax situs and valuation.
| 18 |
| (a) Illinois estate tax.
| 19 |
| (1) For purposes of the Illinois estate tax, in the | 20 |
| case of a decedent
who was a resident of this State at the | 21 |
| time of death, all of the
transferred property has a tax | 22 |
| situs in this State, including any such
property held in | 23 |
| trust, except real or tangible personal property
| 24 |
| physically situated in another state.
| 25 |
| (2) For purposes of the Illinois estate tax, in the | 26 |
| case of a decedent
who was not a resident of this State at | 27 |
| the time of death, the transferred
property having a tax | 28 |
| situs in this State, including any such property held
in | 29 |
| trust, is only the real estate and tangible personal | 30 |
| property physically
situated in this State.
| 31 |
| (b) Illinois generation-skipping transfer tax.
| 32 |
| (1) For purposes of the Illinois generation-skipping | 33 |
| transfer tax, all
transferred property from or in a | 34 |
| resident trust has a tax situs in this
State, including any | 35 |
| such property held in trust, except real or tangible
|
|
|
|
SB2818 |
- 5 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| personal property physically situated in another state on | 2 |
| the date that the
taxable transfer occurs.
| 3 |
| (2) For purposes of the Illinois generation-skipping | 4 |
| transfer tax, none
of the transferred property from or in a | 5 |
| non-resident trust has a tax situs
in this State, except | 6 |
| that portion of the transferred property that is real
or | 7 |
| tangible personal property physically situated in this | 8 |
| State, including
any such property held in trust, on the | 9 |
| date that the taxable transfer occurs.
| 10 |
| (c) Valuation. Except as otherwise expressly provided, for | 11 |
| purposes of
this Act, the gross value of transferred property | 12 |
| shall be its value as
finally determined for purposes of the | 13 |
| related federal transfer tax,
undiminished
by any mortgages, | 14 |
| liens or other encumbrances upon such transferred
property for | 15 |
| which the decedent was personally liable.
| 16 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 17 |
| (35 ILCS 405/6) (from Ch. 120, par. 405A-6)
| 18 |
| Sec. 6. Returns and payments.
| 19 |
| (a) Due Dates. The Illinois transfer
tax shall be paid and | 20 |
| the Illinois transfer tax return shall be filed on
the due date | 21 |
| or dates, respectively, including extensions, for paying the
| 22 |
| related federal transfer tax and filing the related federal | 23 |
| return.
| 24 |
| (b) Installment payments and deferral. In the event that | 25 |
| any portion of
the federal transfer tax is deferred or to be | 26 |
| paid in installments under
the provisions of the Internal | 27 |
| Revenue Code, the portion of the Illinois
transfer tax which is | 28 |
| subject to deferral or payable in installments shall
be | 29 |
| determined by multiplying the Illinois transfer tax by a | 30 |
| fraction, the
numerator of which is the gross value of the | 31 |
| assets included in the
transferred property having a tax situs | 32 |
| in this State and which give rise
to the deferred or | 33 |
| installment payment under
the Internal Revenue Code, and the | 34 |
| denominator of which is the gross value
of all assets included | 35 |
| in the transferred property having a tax situs in
this State. |
|
|
|
SB2818 |
- 6 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| Deferred payments and installment payments, with interest,
| 2 |
| shall be paid at the same time and in the same manner as | 3 |
| payments of the
federal transfer tax are required to be made | 4 |
| under the applicable Sections
of the Internal Revenue Code, | 5 |
| provided that the rate of interest on unpaid
amounts of | 6 |
| Illinois transfer tax shall be determined under this Act.
| 7 |
| Acceleration of payment under this Section shall occur under | 8 |
| the same
circumstances and in the same manner as provided in | 9 |
| the Internal Revenue Code.
| 10 |
| (c) Who shall file and pay. The Illinois transfer tax | 11 |
| return (including
any supplemental or amended return) shall be | 12 |
| filed, and the Illinois
transfer tax (including any additional | 13 |
| tax that may become due) shall be
paid by the same person or | 14 |
| persons, respectively, who are required to pay
the related
| 15 |
| federal transfer tax and file the related federal return ,
or
| 16 |
| who would have been required to pay a federal transfer tax and | 17 |
| file a
federal return if
a federal transfer tax were due .
| 18 |
| (d) Where to file return. The executed Illinois transfer | 19 |
| tax return
shall be filed with the Attorney General. In | 20 |
| addition, a copy of the
Illinois transfer tax return shall be | 21 |
| filed with the county treasurer to
whom the Illinois transfer | 22 |
| tax is paid, determined under subsection (e) of this
Section.
| 23 |
| (e) Where to pay tax. The Illinois transfer tax shall be | 24 |
| paid to the
treasurer of the county determined under the | 25 |
| following rules:
| 26 |
| (1) Illinois Estate Tax. The Illinois estate tax shall | 27 |
| be paid to the
treasurer of the county in which the | 28 |
| decedent was a resident on the date of
the decedent's death | 29 |
| or, if the decedent was not a resident of this State
on the | 30 |
| date of death, the county in which the greater part, by | 31 |
| gross value,
of the transferred property with a tax situs | 32 |
| in this State is located.
| 33 |
| (2) Illinois Generation-Skipping Transfer Tax. The | 34 |
| Illinois
generation-skipping transfer tax involving | 35 |
| transferred property from or in
a resident trust shall be | 36 |
| paid to the county treasurer for the county in
which the |
|
|
|
SB2818 |
- 7 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| grantor resided at the time the trust became irrevocable | 2 |
| (in the
case of an inter vivos trust) or the county in | 3 |
| which the decedent resided
at death (in the case of a trust | 4 |
| created by the will of a decedent).
In the case of an | 5 |
| Illinois generation-skipping transfer tax involving
| 6 |
| transferred property from or in a non-resident trust, the | 7 |
| Illinois
generation-skipping transfer tax
shall
be paid to | 8 |
| the county treasurer for the county in which the greater | 9 |
| part,
by gross value, of the transferred property with a | 10 |
| tax situs in this State is located.
| 11 |
| (f) Forms; confidentiality. The Illinois transfer tax | 12 |
| return shall be
in all respects in the manner and form | 13 |
| prescribed by the regulations of the
Attorney General. At the | 14 |
| same time the Illinois transfer tax return is
filed, the person | 15 |
| required to file shall also file with the Attorney
General a | 16 |
| copy of the related federal return.
For individuals dying after | 17 |
| December 31, 2005, in cases where no federal
return is
required | 18 |
| to be filed, the person required to file an Illinois return | 19 |
| shall also
file with the
Attorney General schedules of assets | 20 |
| in the manner and form prescribed by the
Attorney
General.
The | 21 |
| Illinois transfer tax
return and the copy of the federal return | 22 |
| filed with the Attorney General
or any county treasurer shall | 23 |
| be confidential, and the Attorney General,
each county | 24 |
| treasurer and all of their assistants or employees are
| 25 |
| prohibited from divulging in any manner any of the contents of | 26 |
| those returns,
except
only in a proceeding instituted under the | 27 |
| provisions of this Act.
| 28 |
| (g) County Treasurer shall accept payment. No county | 29 |
| treasurer shall
refuse to accept payment of any amount due | 30 |
| under this Act on the grounds
that the county treasurer has not | 31 |
| yet received a copy of the appropriate
Illinois transfer tax | 32 |
| return.
| 33 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 34 |
| (35 ILCS 405/7) (from Ch. 120, par. 405A-7)
| 35 |
| Sec. 7. Supplemental returns; refunds.
|
|
|
|
SB2818 |
- 8 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| (a) Supplemental returns. If
the State tax credit is | 2 |
| increased after the filing of the Illinois transfer
tax return, | 3 |
| the person or persons required to file the Illinois transfer
| 4 |
| tax return and pay the Illinois transfer tax shall file a | 5 |
| supplemental
Illinois transfer tax return. The supplemental | 6 |
| return shall be filed and
the additional tax shall be paid in | 7 |
| the same place and manner as provided
in Section 6 of this Act. | 8 |
| The due date for the supplemental return and for
the payment of | 9 |
| the additional tax reported in the supplemental return shall
be | 10 |
| no later than 3
months after the earliest of:
| 11 |
| (1) the date an amended , related federal return is | 12 |
| filed;
| 13 |
| (2) the date an increase in the federal transfer tax is | 14 |
| paid or accepted
in writing; or
| 15 |
| (3) the date the Internal Revenue Service issues a | 16 |
| request for evidence
of payment of the State tax credit; or
| 17 |
| (4) the date that any increase to the taxable estate is | 18 |
| discovered;
| 19 |
| provided that if the related federal transfer tax may be | 20 |
| deferred or paid
in installments, then part or all of the | 21 |
| additional Illinois transfer tax
may be deferred or paid in | 22 |
| installments under rules consistent with
subsection (b) of | 23 |
| Section 6 of this Act.
| 24 |
| (b) Refunds. If the state tax credit is reduced after the | 25 |
| filing of the
Illinois transfer tax return, the person who paid | 26 |
| the Illinois transfer tax (or
the person
upon whom the burden | 27 |
| of payment fell) shall file an amended Illinois
transfer tax | 28 |
| return and shall be entitled to a refund of tax or interest
| 29 |
| paid on the Illinois transfer tax. No interest shall be paid on | 30 |
| any amount
refunded.
| 31 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 32 |
| (35 ILCS 405/8) (from Ch. 120, par. 405A-8)
| 33 |
| Sec. 8. Penalties for failure to file tax return or to pay | 34 |
| tax.
| 35 |
| (a) Failure to file return. In case of failure to file any |
|
|
|
SB2818 |
- 9 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| return
required under this Act with the Attorney General by the | 2 |
| due date,
unless it is shown that the failure to file is due to | 3 |
| a reasonable cause,
there shall be added to the amount required
| 4 |
| to be shown as tax on the return 5% of the amount of that tax | 5 |
| (or 5% of
the additional tax due in the case of a supplemental | 6 |
| return) if the failure
is for not more than one month from the | 7 |
| due date, with an additional 5% for
each additional month or | 8 |
| fraction of a month thereafter during
which the failure to file | 9 |
| continues, not exceeding in the aggregate 25% of
the tax or, in | 10 |
| the
case of a supplemental return, 25% of the additional tax.
| 11 |
| (b) Failure to pay tax. In the case of failure to pay the | 12 |
| amount of tax
shown due on any return required under this Act | 13 |
| on or before the due date
for payment of that tax, unless it is | 14 |
| shown that the failure to pay is
due to reasonable cause, there | 15 |
| shall be
added to the unpaid amount of the tax 0.5% of that | 16 |
| unpaid amount if the
failure is for not more than one month | 17 |
| from the due date, with an
additional 0.5% for each additional | 18 |
| month or fraction of a month thereafter
during which the | 19 |
| failure to pay continues, not exceeding in the aggregate 25%
of
| 20 |
| the unpaid amount.
| 21 |
| (c) Extensions of Time.
| 22 |
| (1) Internal Revenue Service Extensions. If the date | 23 |
| for filing the related federal return or the date for | 24 |
| payment of the related federal
transfer tax is extended by | 25 |
| the Internal Revenue Service, the filing of the
return and | 26 |
| payment of the tax imposed by this Act shall be due on the
| 27 |
| respective date specified by the Internal Revenue Service | 28 |
| in granting a
request for extension. If the request for | 29 |
| extension is granted by the
Internal Revenue Service, the | 30 |
| person required to file the Illinois transfer
tax return | 31 |
| shall furnish the Attorney General with a copy of the | 32 |
| request
for extension showing approval of the extension by | 33 |
| the Internal Revenue Service. If
a request for extension of | 34 |
| time to file the federal return is denied by the
Internal | 35 |
| Revenue Service, no penalty shall be due under this Act if | 36 |
| the
return required by this Act is filed within the time |
|
|
|
SB2818 |
- 10 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| specified by the
Internal Revenue Service for filing the | 2 |
| federal return. If a request for
extension of time to pay | 3 |
| the federal transfer tax is denied by the Internal
Revenue | 4 |
| Service, no penalty shall be due under this Act if the tax | 5 |
| is paid
within the time specified by the Internal Revenue | 6 |
| Service for paying the
federal transfer tax.
| 7 |
| (2) Attorney General Extensions. The person or persons | 8 |
| required to file
the Illinois transfer tax return and to | 9 |
| pay the Illinois transfer tax may apply to the
Attorney | 10 |
| General for an extension of time to file the Illinois | 11 |
| transfer tax
return or to pay the Illinois transfer tax. | 12 |
| The application must establish
reasonable cause why it is | 13 |
| impossible or impractical to file a reasonably
complete | 14 |
| return or to pay the full amount of tax due by the due | 15 |
| date. The
Attorney General may for reasonable cause extend | 16 |
| the time for filing the
return or paying the tax for a | 17 |
| reasonable period from the date fixed for
filing the return | 18 |
| or paying the tax.
| 19 |
| (d) Waiver of Penalties.
| 20 |
| (1) Internal Revenue Service Waiver. If the Internal | 21 |
| Revenue Service
waives the penalty provided in the Internal | 22 |
| Revenue Code for failure to
timely file the related federal | 23 |
| return or the penalty for failure to timely
pay the related
| 24 |
| federal transfer tax liability, such waiver or waivers
| 25 |
| shall be deemed to constitute reasonable cause for purposes | 26 |
| of this Section.
| 27 |
| (2) Attorney General Waiver. The Attorney General may | 28 |
| waive the penalty
or
penalties for failure to file or pay | 29 |
| for reasonable cause, notwithstanding
the failure of the | 30 |
| Internal Revenue Service to waive the penalty or penalties
| 31 |
| for
failure to timely file the federal transfer tax return | 32 |
| or to pay the federal
transfer tax.
| 33 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 34 |
| (35 ILCS 405/10) (from Ch. 120, par. 405A-10)
| 35 |
| Sec. 10. Liens and Personal Liability.
|
|
|
|
SB2818 |
- 11 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| (a) Lien for Illinois transfer tax. Unless the
Illinois | 2 |
| transfer tax is sooner paid in full, the Illinois
transfer tax | 3 |
| shall be a lien in favor of this State upon the transferred
| 4 |
| property having a tax situs within this State for 10 years from | 5 |
| the date of
the taxable transfer, or, in the case of Illinois | 6 |
| transfer tax subject to
deferral or payable in installments, | 7 |
| the later of 10 years from the date of
the taxable transfer or | 8 |
| one year after the last deferred or installment
payment may | 9 |
| become due. The lien imposed by this Section on the
transferred | 10 |
| property shall not be valid as against any purchaser,
| 11 |
| mortgagee, pledgee, or other holder of a security interest for | 12 |
| a full and
adequate consideration in money or money's worth; | 13 |
| provided, however, that
any property, consideration or | 14 |
| proceeds received as a result of any sale,
mortgage, pledge or | 15 |
| granting of a security interest shall remain subject to
the | 16 |
| lien imposed by this Section. In addition, the lien imposed by | 17 |
| this
Section on the transferred property shall be subject to | 18 |
| the exceptions set
forth in Section 6324(c)(i) of the Internal | 19 |
| Revenue Code as if the lien
were a lien imposed by that | 20 |
| Section. In no event shall the issuance by the
Attorney General | 21 |
| of a release of the lien imposed by this subsection be
required | 22 |
| with respect to the sale, mortgage, pledge, granting of a | 23 |
| security
interest in, transfer or distribution of transferred | 24 |
| property.
| 25 |
| (b) Special lien for property valued under Section 2032A of | 26 |
| the Internal
Revenue Code. In the event the Illinois estate tax | 27 |
| is reduced as a result
of an election under Section 2032A of | 28 |
| the Internal Revenue Code, then an amount
equal to the | 29 |
| additional Illinois estate tax that would be due in the
absence | 30 |
| of such an election shall be a lien in favor of this State on | 31 |
| the
transferred property that has a tax situs in this State and | 32 |
| is subject to
such election. The lien imposed by this | 33 |
| subsection shall arise at the time
an election is filed under | 34 |
| Section 2032A of the Internal Revenue Code and
shall continue | 35 |
| with respect to such transferred property:
| 36 |
| (1) until the liability for the Illinois estate tax |
|
|
|
SB2818 |
- 12 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| with respect to
such transferred property has been | 2 |
| satisfied or has become unenforceable by
reason of lapse of | 3 |
| time or otherwise; or
| 4 |
| (2) until it is established to the satisfaction of the | 5 |
| Attorney
General that no further tax liability may arise | 6 |
| under this Act with respect
to such transferred property.
| 7 |
| The lien imposed by this subsection shall not be valid as | 8 |
| against any
purchaser, mortgagee, pledgee, other holder of a | 9 |
| security interest,
mechanic's lien, or judgment lien creditor | 10 |
| until notice of such lien has
been filed as provided by the | 11 |
| laws of this State. In regulations
prescribed in accordance | 12 |
| with Section 16 of this Act, the Attorney General
may require | 13 |
| that the qualified heir file such notice of lien. Even though
| 14 |
| notice of said lien has been filed as provided in the preceding | 15 |
| sentence,
such lien shall be subject to the rules set forth in | 16 |
| paragraph (3) of
Section 6324A(d) of the Internal Revenue Code | 17 |
| as if the lien were a lien
imposed by that Section.
| 18 |
| (c) Personal liability. If the Illinois transfer tax is not | 19 |
| paid when
due, then the person required to file the related
| 20 |
| federal return and the
transferee of any transferred property | 21 |
| having a tax situs within this State
shall be personally liable | 22 |
| for the Illinois transfer tax, to the extent of
such | 23 |
| transferred property originally received, controlled or | 24 |
| transferred to
that person or transferee, less the amount of | 25 |
| any expenses or charges
against the transferred property, | 26 |
| related to the taxable transfer, which
have a higher priority | 27 |
| of payment under applicable law than the Illinois transfer tax.
| 28 |
| (d) Collection. The Attorney General shall have the right | 29 |
| to sue for
collection of the Illinois transfer tax for 3 years | 30 |
| after the date of the
actual filing of the related Illinois | 31 |
| transfer tax return with the Attorney
General, or, if later, | 32 |
| the last date upon which application for refund of
the Illinois | 33 |
| transfer tax could be filed with the State Treasurer.
| 34 |
| (e) Waiver of lien and personal liability. If the Attorney | 35 |
| General is
satisfied that no liability for Illinois transfer | 36 |
| tax exists or that the
Illinois transfer tax has been fully |
|
|
|
SB2818 |
- 13 - |
LRB093 19350 SJM 45086 b |
|
| 1 |
| discharged or provided for, the
Attorney General shall issue a | 2 |
| certificate releasing all of the transferred
property having a | 3 |
| tax situs within the State of Illinois from the lien
imposed by | 4 |
| this Section. Issuance of such certificate shall discharge the
| 5 |
| person required to file the related federal
Illinois return and | 6 |
| any
transferee from
personal liability for the Illinois | 7 |
| transfer tax.
| 8 |
| (Source: P.A. 93-30, eff. 6-20-03.)
| 9 |
| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
|
|