State Codes and Statutes
Statutes > Virginia > Title-58-1 > Chapter-9 > 58-1-936§ 58.1-936. Imposition of tax.
A. A tax is hereby imposed upon every generation skipping transfer, where theoriginal transferor is a resident of the Commonwealth of Virginia at the dateof original transfer, in an amount equal to the amount allowable as creditfor state legacy taxes under § 2604 of the Internal Revenue Code, to theextent such credit exceeds the aggregate amount of all taxes on the sametransfer actually paid to the several states of the United States, other thanthe Commonwealth of Virginia.
B. A tax is hereby imposed upon every generation skipping transfer where theoriginal transferor is not a resident of Virginia at the date of the originaltransfer, but where the generation skipping transfer includes real orpersonal property having a situs in Virginia, in an amount equal to theamount allowable as a credit for state legacy taxes under § 2604 of theInternal Revenue Code, reduced by an amount which bears the same ratio to thetotal state tax credit allowable for federal generation skipping transfer taxpurposes as the value of the transferred property taxable by all other statesbears to the value of the gross generation skipping transfer for federalgeneration skipping transfer tax purposes. In any case in which a tax isimposed on a generation skipping transfer by Virginia and by one or moreother states or the District of Columbia, the Commissioner shall negotiatewith the taxing authorities of such other state, states, or District ofColumbia so that the aggregate amount of taxes imposed by Virginia and suchother state, states or the District of Columbia on a generation skippingtransfer does not exceed 100 percent of the amount allowable as credit forstate legacy taxes under § 2604 of the Internal Revenue Code.
(Code 1950, § 58-238.37; 1979, c. 559; 1984, c. 675; 1987, c. 484.)
