MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Ways and Means

By: Representative Gunn

House Bill 1543

AN ACT TO AMEND SECTION 27-10-1, MISSISSIPPI CODE OF 1972, TO EXCLUDE CERTAIN PROPERTY FROM THE DEFINITION OF THE TERM "ESTATE" AND TO REVISE THE DEFINITION OF THE TERM "PERSON INTERESTED IN THE ESTATE" FOR PURPOSES OF THE STATE UNIFORM ESTATE TAX APPORTIONMENT ACT; TO AMEND SECTION 27-10-7, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS REGARDING THE APPORTIONMENT OF TAX UNDER THE STATE UNIFORM ESTATE TAX APPORTIONMENT ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-10-5, Mississippi Code of 1972, is amended as follows:

27-10-5. Definitions.

In this chapter:

(a) "Estate" means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate tax payable to this state. The term "estate" does not include any property or interest in property that is not included in a decedent's taxable estate determined under 26 USC 2001(b)(1)(A) and 26 USC 2051, and does not include any adjustable taxable gifts of the decedent as defined in 26 USC 2001(b) notwithstanding the holding of any court to the contrary;

(b) "Fiduciary" means executor, administrator of any description, and trustee;

(c) "Person" means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency or local governmental agency;

(d) "Person interested in the estate" means any person including an executor, administrator, guardian, conservator or trustee, entitled to receive, or who has received, from a decedent while alive or by reason of the death of a decedent any property or interest therein included in the decedent's taxable estate as determined under 26 USC 2001(b)(1)(A) and 26 USC 2051;

(e) "State" means any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; and

(f) "Tax" means the federal estate tax and the additional estate tax imposed by the State of Mississippi and interest and penalties imposed in addition to the tax.

SECTION 2. Section 27-10-7, Mississippi Code of 1972, is amended as follows:

27-10-7. Except as provided in Section 7-10-17 and, unless the will otherwise provides, the tax shall be apportioned among all persons interested in the estate. The apportionment shall be made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax shall be used for that purpose. If the decedent's will directs a method of apportionment of tax different from the method described in this chapter, the method described in the will controls; however, tax may not be apportioned against an interest which is not an interest in the estate, including, specifically, any adjustable taxable gift of the decedent as defined in Section 26 USC 2001(b), notwithstanding any provision of the decedent's will to the contrary.

SECTION 3. This act shall take effect and be in force from and after its passage.