MISSISSIPPI LEGISLATURE

2004 Regular Session

To: Ways and Means

By: Representative Watson

House Bill 1781

AN ACT TO AMEND SECTION 27-9-5, MISSISSIPPI CODE OF 1972, TO PROVIDE A STATE ESTATE TAX SCHEDULE FOR DECEDENTS DYING ON OR AFTER JANUARY 1, 2004, THAT IS EQUAL TO THE ESTATE TAX SCHEDULE FOR DECEDENTS DYING BEFORE JANUARY 1, 2000; TO AMEND SECTION 27-9-59, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE ESTATE TAX LAW SHALL BE REPEALED FROM AND AFTER JANUARY 1, 2010; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 27-9-5, Mississippi Code of 1972, is amended as follows:

     [For decedents dying after March 22, 1956, and before October 1, 1988, this section shall read as follows:]

     27-9-5.  A tax equal to the sum of the following percentages of the value of the net estate is hereby imposed upon the transfer of the net estate of every decedent dying after March 22, 1956, and before October 1, 1988, whether a resident or a nonresident of the State of Mississippi:

MISSISSIPPI ESTATE TAX SCHEDULE

     Over     But not over                        Of excess over

 $   -0-     $    60,000                 1%

     60,000      100,000  $    600 plus  1.6%        60,000

    100,000     200,000     1,240 plus  2.4%        100,000

    200,000     400,000     3,640 plus  3.2%        200,000

    400,000     600,000    10,040 plus  4.0%        400,000

    600,000     800,000    18,040 plus  4.8%        600,000

    800,000    1,000,000         27,640 plus  5.6%        800,000

  1,000,000    1,500,000         38,840 plus  6.4%      1,000,000

  1,500,000    2,000,000         70,840 plus  7.2%      1,500,000

  2,000,000    2,500,000    106,840 plus  8.0%     2,000,000

  2,500,000    3,000,000    146,840 plus  8.8%     2,500,000

  3,000,000    3,500,000    190,840 plus  9.6%     3,000,000

  3,500,000    4,000,000    238,840 plus 10.4%     3,500,000

  4,000,000    5,000,000    290,840 plus 11.2%     4,000,000

  5,000,000    6,000,000    402,840 plus 12.0%     5,000,000

  6,000,000    7,000,000    522,840 plus 12.8%     6,000,000

  7,000,000    8,000,000    650,840 plus 13.6%     7,000,000

  8,000,000    9,000,000    786,840 plus 14.4%     8,000,000

  9,000,000   10,000,000    930,840 plus 15.2%     9,000,000

 10,000,000 and over    1,082,840 plus 16.0%     10,000,000

     Provided, however, that the tax due under this section shall not be less than the state death tax credit allowable under Title 26, Section 2011, USCS.

     [For decedents dying on or after October 1, 1988, and before October 1, 1989, this section shall read as follows:]

     27-9-5.  A tax equal to the sum of the following percentages of the value of the net estate is hereby imposed upon the transfer of the net estate of every decedent dying on or after October 1, 1988, and before October 1, 1989, whether a resident or a nonresident of the State of Mississippi:

MISSISSIPPI ESTATE TAX SCHEDULE

     Over      But not over                       Of excess over

 $    -0-     $  100,000                   1.7%

    100,000     200,000    1,700 plus  3.4%         100,000

    200,000     400,000    5,100 plus  5.2%         200,000

    400,000     600,000   15,500 plus  6.6%         400,000

    600,000     800,000   28,700 plus  8.0%         600,000

    800,000    1,000,000        44,700 plus  9.7%         800,000

  1,000,000    1,500,000        64,100 plus 11.4%        1,000,000

  1,500,000    2,000,000   121,100 plus 12.7%       1,500,000

  2,000,000    2,500,000   184,600 plus 14.0%       2,000,000

  2,500,000    3,000,000   254,600 plus 15.3%       2,500,000

  3,000,000    3,500,000   331,100 plus 16.7%       3,000,000

  3,500,000    And over  414,600 plus 18.4%        3,500,000

     Provided, however, that the tax due under this section shall not be less than the state death tax credit allowable under Title 26, Section 2011, USCS.

     [For decedents dying on or after October 1, 1989, and before October 1, 1990, this section shall read as follows:]

     27-9-5.  A tax equal to the sum of the following percentages of the value of the net estate is hereby imposed upon the transfer of the net estate of every decedent dying on or after October 1, 1989, and before October 1, 1990, whether a resident or a nonresident of the State of Mississippi:

MISSISSIPPI ESTATE TAX SCHEDULE

     Over      But not over                       Of excess over

 $    -0-     $  100,000                      1.4%

    100,000     200,000      1,400 plus  2.8%       100,000

    200,000     400,000      4,200 plus  4.4%       200,000

    400,000     600,000     13,000 plus  5.75%      400,000

    600,000     800,000     24,500 plus  6.9%       600,000

    800,000    1,000,000          38,300 plus  8.3%       800,000

  1,000,000    1,500,000          54,900 plus  9.7%     1,000,000

  1,500,000    2,000,000     103,400 plus 10.85%        1,500,000

  2,000,000    2,500,000     157,650 plus 12.0%   2,000,000

  2,500,000    3,000,000     217,650 plus 13.15%        2,500,000

  3,000,000    3,500,000     283,400 plus 14.3%   3,000,000

  3,500,000    4,000,000     354,900 plus 15.7%   3,500,000

  4,000,000    5,000,000     433,400 plus 16.1%   4,000,000

  5,000,000    6,000,000     594,400 plus 16.5%   5,000,000

  6,000,000    7,000,000     759,400 plus 16.9%   6,000,000

  7,000,000    8,000,000     928,400 plus 17.3%   7,000,000

  8,000,000    9,000,000   1,101,400 plus 17.7%   8,000,000

  9,000,000   10,000,000   1,278,400 plus 18.1%   9,000,000

 10,000,000 and over      1,459,400 plus 18.5%    10,000,000

     Provided, however, that the tax due under this section shall not be less than the state death tax credit allowable under Title 26, Section 2011, USCS.

     [For decedents dying on or after October 1, 1990, and before January 1, 2000, this section shall read as follows:]

     27-9-5.  A tax equal to the sum of the following percentages of the value of the net estate is hereby imposed upon the transfer of the net estate of every decedent dying on or after October 1, 1990, whether a resident or a nonresident of the State of Mississippi:

MISSISSIPPI ESTATE TAX SCHEDULE

     Over      But not over                       Of excess over

 $    -0-     $   60,000                     1%

     60,000      100,000  $    600 plus  1.6%           60,000

    100,000     200,000     1,240 plus  2.4%          100,000

    200,000     400,000     3,640 plus  3.2%          200,000

    400,000     600,000    10,040 plus  4.0%          400,000

    600,000     800,000    18,040 plus  4.8%          600,000

    800,000    1,000,000         27,640 plus  5.6%          800,000

  1,000,000    1,500,000         38,840 plus  6.4%        1,000,000

  1,500,000    2,000,000         70,840 plus  7.2%        1,500,000

  2,000,000    2,500,000    106,840 plus  8.0%       2,000,000

  2,500,000    3,000,000    146,840 plus  8.8%       2,500,000

  3,000,000    3,500,000    190,840 plus  9.6%       3,000,000

  3,500,000    4,000,000    238,840 plus 10.4%       3,500,000

  4,000,000    5,000,000    290,840 plus 11.2%       4,000,000

  5,000,000    6,000,000    402,840 plus 12.0%       5,000,000

  6,000,000    7,000,000    522,840 plus 12.8%       6,000,000

  7,000,000    8,000,000    650,840 plus 13.6%       7,000,000

  8,000,000    9,000,000    786,840 plus 14.4%       8,000,000

  9,000,000   10,000,000    930,840 plus 15.2%       9,000,000

 10,000,000 and over    1,082,840 plus 16.0%       10,000,000

     Provided, however, that the tax due under this * * * section shall not be less than the state death tax credit allowable under Title 26, Section 2011, USCS.

     [For decedents dying on or after January 1, 2000, and before January 1, 2004, this section shall read as follows:]

     27-9-5.  A tax is hereby imposed upon the transfer of the net estate of every decedent dying on or after January 1, 2000, in an amount equal to the maximum amount of state death tax credit permissible as a credit or deduction in computing any federal estate tax payable by the estate according to the act of Congress in effect, on the date of the death of the decedent, taxing such estate with respect to the items subject to taxation in Mississippi.  The tax imposed by this section shall not exceed the aggregate amounts which may by any law of the United States be allowed to be credited against or deducted for federal estate tax.  The tax imposed by this section shall be due in the proportion that the estate located in Mississippi bears to the entire estate wherever located.  The estate tax hereby imposed by this section shall only be exercised or enforced to the extent of absorbing the amount of any deduction or credit which may be permitted by the laws of the United States now existing or hereafter enacted to be claimed as a deduction or credit against such similar tax of the United States applicable to Mississippi estates.

     [For decedents dying on or after January 1, 2004, this section shall read as follows:]

     27-9-5.  A tax equal to the sum of the following percentages of the value of the net estate is hereby imposed upon the transfer of the net estate of every decedent dying on or after January 1, 2004, whether a resident or a nonresident of the State of Mississippi:

MISSISSIPPI ESTATE TAX SCHEDULE

     Over      But not over                       Of excess over

 $    -0-     $   60,000                1%

     60,000      100,000  $    600 plus  1.6%           60,000

    100,000     200,000     1,240 plus  2.4%          100,000

    200,000     400,000     3,640 plus  3.2%          200,000

    400,000     600,000    10,040 plus  4.0%          400,000

    600,000     800,000    18,040 plus  4.8%          600,000

    800,000    1,000,000         27,640 plus  5.6%          800,000

  1,000,000    1,500,000         38,840 plus  6.4%        1,000,000

  1,500,000    2,000,000         70,840 plus  7.2%        1,500,000

  2,000,000    2,500,000    106,840 plus  8.0%       2,000,000

  2,500,000    3,000,000    146,840 plus  8.8%       2,500,000

  3,000,000    3,500,000    190,840 plus  9.6%       3,000,000

  3,500,000    4,000,000    238,840 plus 10.4%       3,500,000

  4,000,000    5,000,000    290,840 plus 11.2%       4,000,000

  5,000,000    6,000,000    402,840 plus 12.0%       5,000,000

  6,000,000    7,000,000    522,840 plus 12.8%       6,000,000

  7,000,000    8,000,000    650,840 plus 13.6%       7,000,000

  8,000,000    9,000,000    786,840 plus 14.4%       8,000,000

  9,000,000   10,000,000    930,840 plus 15.2%       9,000,000

 10,000,000 and over    1,082,840 plus 16.0%       10,000,000

     Provided, however, that the tax due under this section shall not be less than the state death tax credit allowable under Title 26, Section 2011, USCS.

     SECTION 2.  Section 27-9-59, Mississippi Code of 1972, is amended as follows:

     27-9-59. This chapter shall stand repealed from and after January 1, 2010.  Wherever possible the terms of this chapter shall be construed in conformity with similar provisions of the estate tax law of the United States.

     SECTION 3.  This act shall take effect and be in force from and after January 1, 2004.