Amendment #827 to H5007
Estate Tax Principal Residence
Mr. Dooley of Norfolk moves to amend the bill Moves to amend the bill by adding the following section:
“SECTION XX. Chapter 65C of the General Laws is hereby amended by striking out Section 2A in their entirety, as appearing in the 2020 Official Edition, and inserting in place thereof the following section:-
Section 2. (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or after January 1, 2023 who, at the time of death, was a resident of the commonwealth. This subsection shall only apply to each person dying on or after January 1, 2023. For the estate of decedents dying prior to January 1, 2023, they shall be subject to the provisions of chapter 65C of the general laws in effect upon the date of death of such decedent.
(b) A tax is hereby imposed upon the transfer of real property situated in this commonwealth and upon tangible personal property having an actual situs in this commonwealth of every person who at the time of his or her death was not a resident of this commonwealth.
(c) Notwithstanding any other provision of law, the tax imposed by subsections (a) and (b) shall be computed upon the value of any property subject to a power of appointment which is includible in the federal gross estate, notwithstanding that a tax has been paid thereon pursuant to section 14 of chapter 65.
(d) The principal residence of a deceased person who, at the time of their death, was a resident of the commonwealth shall be excluded in such person’s Massachusetts gross estate subject to the exclusion requirements of section 121 of the Code, provided that such residence has been owned and used by such person as his or her principal residence for periods aggregating two years or more during the five-year period ending on the date of such person’s death. Ownership shall include, but not be limited to, sole ownership, joint ownership, ownership via a funded revocable trust or nominee trust, or other such vehicles as determined by the Department of Revenue. The executor may elect to include the value of such deceased person’s residence in such person’s Massachusetts gross estate. This election shall be made by the executor on the Massachusetts estate tax return filed within the time prescribed for filing such return, or any extension of such time granted by the commissioner. Such election, once made, shall be irrevocable.
(e) The maximum exclusion value of a person's principal residence allowed to be deducted from their Massachusetts net estate may not exceed the amount of the basic exclusion amount as defined in section 1. This deduction is separate and distinct from the basic exclusion amount and both may be deducted from the net estate to determine the taxable estate.
(f) The basis of property, for Massachusetts estate tax purposes, acquired from the decedent shall be the basis computed pursuant to section 1014 of the Code.
(g) A person who, at the time of death, was a resident of the commonwealth and whose deceased spouse was a resident of the commonwealth may elect to apply the deceased spousal unused exclusion amount to the Massachusetts gross estate. This exclusion shall be made by the executor on the Massachusetts estate tax return filed within the time prescribed for filing such return, or any extension of such time granted by the commissioner. Such election, once made, shall be irrevocable.
(h) Notwithstanding any other provision of law, the tax imposed by subsections (b) and (c) shall be computed upon the value of any property subject to a power of appointment which is includible in the federal gross estate, notwithstanding that a tax has been paid thereon pursuant to section 14 of chapter 65.
(i) For the purposes of computing the tax imposed by subsections (b) and (c) of this section, the provisions of section 3 shall not apply.
(j) The commissioner of revenue may make determinations and shall prescribe such regulations as may be necessary or appropriate to carry out this subsection.
(k) For the estate of decedents dying on or after January 1, 2023 all references and provisions in subsection (b) to the Internal Revenue Code or Code, unless the context clearly indicates otherwise, shall be to the Code as in effect for the taxable year.”