MISSISSIPPI LEGISLATURE
2005 Regular Session
To: Finance
By: Senator(s) Dawkins, Williamson
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, 2005, THAT IS EQUAL TO THE ESTATE TAX SCHEDULE FOR DECEDENTS DYING BEFORE JANUARY 1, 2000; TO AMEND SECTION 27-9-11, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STANDARD DEDUCTION FROM THE GROSS ESTATE FOR ESTATE TAX PURPOSES SHALL BE $675,000.00, WHICH IS THE AMOUNT OF THE DEDUCTION FOR DECEDENTS DYING IN 2000 OR 2001; TO REPEAL SECTION 27-9-59, MISSISSIPPI CODE OF 1972, WHICH PROVIDES THAT THE ESTATE TAX LAW OF THIS STATE SHALL REMAIN IN FORCE AND EFFECT SO LONG AS THE GOVERNMENT OF THE UNITED STATES RETAINS IN FULL FORCE AND EFFECT AS A PART OF THE REVENUE LAWS OF THE UNITED STATES A FEDERAL ESTATE TAX, PROVIDES THAT THE ESTATE TAX LAWS SHALL BE REPEALED WHEN THE GOVERNMENT OF THE UNITED STATES CEASES TO IMPOSE AN ESTATE TAX, AND PROVIDES THAT WHEREVER POSSIBLE THE TERMS OF THIS STATUTE SHALL BE CONSTRUED IN CONFORMITY WITH SIMILAR PROVISIONS OF THE ESTATE TAX LAW OF THE UNITED STATES; 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, 2005, 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, 2005, 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, 2005, 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 27-9-11, Mississippi Code of 1972, is amended as follows:
27-9-11. For the purposes of the tax imposed by this chapter the value of the taxable estate shall be determined in the case of a resident by deducting from the gross estate, after the deductions provided for in Section 27-9-9 have been made, the sum of One Hundred Twenty Thousand Six Hundred Sixty-six Dollars ($120,666.00) in the case of a decedent dying in 1978; the sum of One Hundred Thirty-four Thousand Dollars ($134,000.00) in the case of a decedent dying in 1979; the sum of One Hundred Forty-seven Thousand Three Hundred Thirty-three Dollars ($147,333.00) in the case of a decedent dying in 1980; the sum of One Hundred Sixty-one Thousand Five Hundred Sixty-three Dollars ($161,563.00) in the case of a decedent dying in 1981; and the sum of One Hundred Seventy-five Thousand Six Hundred Twenty-five Dollars ($175,625.00) in the case of a decedent dying in 1982 or any date thereafter prior to October 1, 1988; the sum of Four Hundred Thousand Dollars ($400,000.00) in the case of a decedent dying on or after October 1, 1988, but prior to October 1, 1989; the sum of Five Hundred Thousand Dollars ($500,000.00) in the case of a decedent dying on or after October 1, 1989, but prior to October 1, 1990; the sum of Six Hundred Thousand Dollars ($600,000.00) in the case of a decedent dying on or after October 1, 1990, but prior to January 1, 1998; the sum of Six Hundred Twenty-five Thousand Dollars ($625,000.00) in the case of a decedent dying in 1998; the sum of Six Hundred Fifty Thousand Dollars ($650,000.00) in the case of a decedent dying in 1999; the sum of Six Hundred Seventy-five Thousand Dollars ($675,000.00) in the case of a decedent dying in 2000 or 2001; the amount of the applicable exclusion established under 26 USCS 2010, in the case of a decedent dying * * * in 2002; the sum of Six Hundred Seventy-five Thousand Dollars ($675,000.00) in the case of a decedent dying on or after January 1, 2005.
SECTION 3. Section 27-9-59, Mississippi Code of 1972, which provides that the estate tax law of this state shall remain in force and effect so long as the government of the United States retains in full force and effect as a part of the revenue laws of the United States a federal estate tax, provides that the estate tax laws shall be repealed when the government of the United States ceases to impose an estate tax, and provides that wherever possible the terms of this statute shall be construed in conformity with similar provisions of the estate tax law of the United States, is repealed.
SECTION 4. This act shall take effect and be in force from and after January 1, 2005.