LRB-3796/4
JK:wlj&hmh:jf
2001 - 2002 LEGISLATURE
October 29, 2001 - Introduced by Representatives Jensen, Krawczyk,
Montgomery, Suder, Freese, Leibham, Kreibich, Albers, Nass, Musser,
Starzyk, Hahn, Bies, Owens, Walker, Ladwig, M. Lehman, Vrakas, Ward,
Kedzie, Olsen, Hundertmark, Rhoades, Gundrum, J. Fitzgerald, D. Meyer,
Gunderson, Stone, Ainsworth, Pettis, Petrowski, Johnsrud and F. Lasee,
cosponsored by Senators Panzer, Welch, Darling, Huelsman, Schultz,
Roessler and Rosenzweig, by request of Governor Scott McCallum. Referred
to Committee on Tax and Spending Limitations.
AB605,1,5
1An Act to affect 2001 Wisconsin Act 16, section
2200d,
2001 Wisconsin Act 16,
2section
2200e,
2001 Wisconsin Act 16, section
2200g,
2001 Wisconsin Act 16,
3section
2200k,
2001 Wisconsin Act 16, section
2200L,
2001 Wisconsin Act 16,
4section
9144 (1q) and
2001 Wisconsin Act 16, section
9444 (5ak);
relating to:
5repealing the estate tax.
Analysis by the Legislative Reference Bureau
Under current law, the state imposes an estate tax on the transfer of a
decedent's property in this state, if the transfer is subject to the federal estate tax.
The state estate tax is due nine months after the date of the decedent's death. For
deaths occurring on or before September 30, 2002, the amount of the estate tax is
equal to the amount of the federal estate tax credit allowed for estate taxes paid to
a state under the federal law in effect on the day of the decedent's death. For deaths
occurring after September 30, 2002, and before January 1, 2008, the amount of the
state estate tax is equal to the amount of the federal estate tax credit allowed for
estate taxes paid to a state under the federal law in effect on December 31, 2000. For
deaths occurring after December 31, 2007, the amount of the state estate tax is equal
to the amount of the federal estate tax credit allowed for estate taxes paid to a state
under the federal law in effect on the day of the decedent's death.
Under federal law, the federal estate tax will be phased out, beginning with
deaths occurring after December 31, 2001, and ending with deaths occurring after
December 31, 2009. In addition, under federal law, the amount of the federal estate
tax credit is reduced by 25% for deaths in 2002, by 50% for deaths in 2003, and by
75% for deaths in 2004. The federal estate tax credit is eliminated for deaths
occurring after December 31, 2004.
Under this bill, the amount of the state estate tax that is due on the transfer
of a decedent's property in this state is equal to the amount of the federal estate tax
credit allowed for estate taxes paid to a state under the federal law in effect on the
day of the decedent's death.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
