CHAPTER 11. INDIANA ESTATE TAX
IC 6-4.1-11
Chapter 11. Indiana Estate Tax
IC 6-4.1-11-1
Imposition of estate tax
Sec. 1. A tax to be known as the "Indiana estate tax" is imposedupon a resident or nonresident decedent's estate.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.58-1990,SEC.2.
IC 6-4.1-11-2
Computation for residents and nonresidents; determination ofvalue of Indiana gross estate
Sec. 2. (a) The Indiana estate tax is the amount determined inSTEP FOUR of the following formula:
STEP ONE: Divide:
(A) the value of the decedent's Indiana gross estate; by
(B) the value of the decedent's total gross estate for federalestate tax purposes.
STEP TWO: Multiply:
(A) the quotient determined under STEP ONE; by
(B) the federal state death tax credit allowable against thedecedent's federal estate tax.
The product is the Indiana portion of the federal state death taxcredit.
STEP THREE: Subtract:
(A) the amount of all Indiana inheritance taxes actually paidas a result of the decedent's death; from
(B) the product determined under STEP TWO.
STEP FOUR: Determine the greater of the following:
(A) The remainder determined under STEP THREE.
(B) Zero (0).
(b) For purposes of this section, the value of a nonresidentdecedent's Indiana gross estate equals the total fair market value onthe appraisal date of tangible personal property and real estate whichhad an actual situs in Indiana at the time of the decedent's death andwhich is included in the decedent's gross estate for federal estate taxpurposes under Sections 2031 through 2044 of the Internal RevenueCode.
(c) For purposes of this section, the value of a resident decedent'sIndiana gross estate equals the total fair market value on the appraisaldate of personal property and real estate that had an actual situs inIndiana at the time of the decedent's death and all intangible personalproperty wherever located that is included in the decedent's grossestate for federal estate tax purposes.
(d) For purposes of this section, the value of a resident ornonresident decedent's total gross estate for federal estate taxpurposes equals the total fair market value on the appraisal date ofthe property included in the decedent's gross estate for federal estatetax purposes under Sections 2031 through 2044 of the Internal
Revenue Code.
(e) For purposes of determining the value of a decedent's Indianagross estate and the decedent's total gross estate, the appraisal datefor each property interest is the date on which the property interestis valued for federal estate tax purposes.
(f) The estate tax does not apply to a property interest transfermade by a resident decedent if the interest transferred is in:
(1) real property located outside Indiana, regardless of whetherthe property is held in a trust or whether the trustee is requiredto distribute the property in-kind; or
(2) real property located in Indiana, if:
(A) the real property was transferred to an irrevocable trustduring the decedent's lifetime;
(B) the transfer to the trust was not made in contemplationof the transferor's death, as determined under IC 6-4.1-2-4;and
(C) the decedent does not have a retained interest in thetrust.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,P.L.75, SEC.13; P.L.58-1990, SEC.3; P.L.78-1993, SEC.3.
IC 6-4.1-11-3
Accrual of tax; time for payment
Sec. 3. (a) The Indiana estate tax accrues at the time of thedecedent's death. Except as provided in subsection (b) of this section,the Indiana estate tax is due twelve (12) months after the date of thedecedent's death.
(b) Any Indiana estate tax that results from a final change in theamount of federal estate tax is due:
(1) eighteen (18) months after the date of the decedent's death;or
(2) one (1) month after final notice of the federal estate tax dueis given to the person liable for the tax;
whichever is later.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001,SEC.8.
IC 6-4.1-11-4
Late payments; interest
Sec. 4. If Indiana estate tax is not paid on or before the due date,the person liable for the tax shall pay interest on the delinquentportion of the tax from the due date until it is paid at the rate of sixpercent (6%) per year.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-11-5
Indiana estate tax as credit against inheritance tax
Sec. 5. A person is entitled to claim the amount of Indiana estatetax paid under this chapter as a credit against inheritance tax imposedunder this article if: (1) the inheritance tax is imposed after the Indiana estate tax ispaid; and
(2) both taxes are imposed as a result of the same decedent'sdeath.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-11-6
Collection of tax; remittance; deposit; distribution to counties
Sec. 6. (a) The department of state revenue shall collect theIndiana estate tax and the interest charges imposed under thischapter. The department shall remit the money which it collectsunder this chapter to the state treasurer, and the state treasurer shalldeposit the money in the state general fund.
(b) Before August 15 of each year, the treasurer of state shalldistribute to each county the amount determined under subsection (c)for the county. There is appropriated from the state general fund theamount necessary to make the distributions under this section.
(c) The department of state revenue shall determine theinheritance tax replacement amount for each county, using thefollowing formula:
STEP ONE: Determine the amount of inheritance tax revenueretained by each county in each state fiscal year beginning withthe state fiscal year that began July 1, 1990, and ending with thestate fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount ofinheritance tax revenue retained by each county using five (5)of the seven (7) state fiscal years described in STEP ONE afterexcluding the two (2) years in which each county retained itshighest and lowest totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWOamount minus the amount of inheritance taxes retained by thecounty during the immediately preceding state fiscal year.
As added by Acts 1976, P.L.18, SEC.1. Amended byP.L.254-1997(ss), SEC.11.
IC 6-4.1-11-7
Estate tax owing; final determination; appeal
Sec. 7. A probate court's final determination concerning theamount of Indiana estate tax owing under this chapter may beappealed to the tax court in accordance with the rules of appellateprocedure.
As added by P.L.59-1990, SEC.3.